LAKE CHARLES, La.-Sprint PCS affiliate US Unwired Inc. posted a 14 percent year-over-year increase in total revenues from $124.7 million during the first quarter of 2003 to $141.6 million this year, which when combined with a drop in total operating expenses over the same time frame helped push net losses down from $57.5 million last year, a loss of 45 cents per share, to $9.7 million this year, a loss of 7 cents per share.
Subscriber additions also improved from 25,623 net new subscribers during the first quarter of 2003 to 37,787 net customer additions this year. Subscriber growth was helped by a 9-percent increase in gross customer additions, as well as a drop in customer churn from 3.7 percent last year to 3.1 percent this year.
Average revenue per user also increased from $53.29 last year to $53.64 this year, while the cash cost per user dropped from $37.68 to $29.22, and the cost per gross addition fell from $309 last year to $281 this year.
“These are extremely strong results,” said Robert Piper, president and chief executive officer of US Unwired. “We accelerated the positive momentum generated last year from substantial changes in the policies, programs and procedures at every level of our company. As a result, we are more efficient and our metrics continue to improve.”
In other US Unwired news, the carrier has launched a trial of prepaid wireless services in certain markets using billing services provider Unibill’s hosted prepaid billing services.
The offering, Chat Pak Unlimited, provides monthly unlimited local calling at a flat rate, with a second value bucket that can be added for toll, roaming and content charges. Subscribers are reminded to replenish minutes via a message to their phones and can go directly to an interactive voice response unit for replenishment options. Unibill is also providing the carrier with personal identification number codes and wireless number management, as well as prepaid customer care applications and business intelligence reporting.
“Unlimited local calling is the future of wireless, and Unibill is the future of prepaid,” stated Jack Blanchard, vice president of marketing for US Unwired. “Their billing services allow US Unwired to shatter the traditional notions of prepaid mobility and tackle the huge market of wireline substitution.”
