Triton PCS Holdings Inc. reported a disappointing loss of 833 subscribers during the second quarter of 2004, which was well below analyst expectations of around 20,000 net customer additions and below the 19,000 subscribers the carrier added during the second quarter of 2003. Impacting Triton PCS’ customer growth was an increase in customer churn from 2.1 percent last year to 2.6 percent this year that offset flat year-over-year gross customer additions.
Average revenue per user increased slightly from $56.51 last year to $56.68 this year, which Triton PCS noted was fueled by new service plans and price increases implemented during the quarter. Cash cost per user also increased from $37.41 last year to $38.34 this year, while the cost per gross addition dropped from $440 during the second quarter of 2003 to $439 this year.
Total revenues increased nearly 3 percent from $206.5 million during the second quarter of 2003 to $212.5 million this year despite a drop in roaming revenues from $49.3 million last year to $38.5 million this year. Triton PCS’ management noted the drop in roaming revenue, which analysts noted fell from 17.7 cents per minute in yield last year to 14.9 cents per minute in yield this year, was due to reduced roaming volume from AT&T Wireless Services Inc.
The roaming volume drop is based on Triton’s recent agreement with its two largest roaming partners that will result in Triton relying less on roaming revenues. The agreement, which was signed last month and is contingent on Cingular closing its pending acquisition of AWS, included market swaps that provide Triton PCS with a stronger presence in the Carolinas and with Cingular’s network in Puerto Rico in exchange for Triton PCS’ Virginia operations and allowing Cingular to compete against Triton PCS in its markets post-merger.
“Continuing pressure on roaming revenue underscores the soundness of our transition to a subscriber-centric business upon completion of our agreements with Cingular and AT&T Wireless,” said Michael Kalogris, chairman and chief executive officer of Triton PCS.
Net losses applicable to common shareholders improved from $60.6 million during the second quarter of 2003, or a loss of 97 cents per share, to $31.6 million this year, or a loss of 47 cents per share.
Triton PCS added that it completed the rollout of commercial GSM/GPRS services across all of its markets in late June.
