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Nextel Partners results reflect increasing revenues, free cash flow

Nextel Partners Inc.’s third-quarter financial results reflect improvements across the board.

The carrier reported revenues of $337.2 million, up 29 percent from a year ago, and earnings before interest, taxes, depreciation and amortization of $103.5 million, an increase of 86 percent from last year. Free cash flow was $41.4 million vs. a $20.1 million loss last year, and net cash generated in the quarter reached $50.9 million.

The carrier added 93,500 subscribers during the quarter, bringing its total subscriber base to 1.5 million. Average revenue per user was $68, and churn was 1.4 percent. The company built 146 cell sites during the period, bringing the total number of Nextel Partners-equipped sites to 3,882.

“Our record third-quarter results clearly highlight the upside that remains for Nextel Partners,” said John Chapple, the company’s chairman, chief executive officer and president. “Through consistent execution on all fronts, we achieved record net adds while maintaining industry-leading subscriber metrics and scaling costs to continue to expand our profitability.”

For 2004, Nextel Partners expects net subscriber additions of at least 360,000, annual churn below 1.5 percent, and ARPU in the mid to high $60 range. Meanwhile, the carrier predicts revenues will reach $1.28 billion, and EBITDA will be $370 million.

Nextel Partners was trading down 1.89 percent at $17.12 per share following the news.

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