Continuing what it claims is its 18th consecutive quarter of exceeding analysts’ expectations, Nextel Partners Inc. said it added 92,000 net customers during the second quarter, ending the first half of this year with more than 1.4 million total subscribers. Analysts expected the Nextel Communications Inc. affiliate to add between 85,000 and 90,000 customers during the quarter, while Nextel Partners added 89,000 subscribers during the second quarter of 2003.
Contributing to Nextel Partners’ strong growth was a reported 1.4-percent customer churn during the quarter compared with estimates of between 1.6 and 1.7 percent and the 1.6 percent the carrier reported last year, which offset slightly lower than expected gross customer additions of 149,300 subscribers. Average revenue per user also increased from $66 last year to $68 this year, which combined with its customer churn figures, resulted in $4,857 in lifetime revenue per subscriber during the quarter.
Total revenues also improved from $234.3 million during the second quarter of 2003 to $332.4 million this year driven by substantial increases in both service and equipment revenues. Net losses attributed to shareholders also improved from $110 million last year, a loss of 44 cents per share, to a loss of $19.4 million this year, a loss of 7 cents per share.
In connection with its second-quarter results, Nextel Partners increased its full-year guidance for customer growth from 340,000 subscribers to 355,000 subscribers; customer churn from 1.7 percent to 1.6 percent; service revenues from $1.2 billion to $1.25 billion; and adjusted earnings before interest, taxes, depreciation and amortization from $325 million to $340 million. The carrier also increased the number of cell sites its expects to add this year from 400 to 450, though capital expenditures are expected to remain at $165 million for the year.
