Sprint PCS affiliate Alamosa Holdings Inc. posted $221.7 million in total revenues during the fourth quarter of last year, which was in line with analysts’ estimates and a 32-percent improvement compared with the $168.2 million the carrier posted during the fourth quarter of 2003. Net income also improved from a loss of $9.9 million during the fourth quarter of 2003, or a loss of 10 cents per share, to a return of $1.6 million last year, or 1 cent per share. Alamosa’s management noted that the fourth-quarter net income was the carrier’s first positive net income for a quarter.
Full-year revenues increased 27 percent from $631.1 million in 2003 to $803.1 million last year, while net losses dropped from $76.6 million in 2003, or a loss of 81 cents per share, to $34.2 million, or a loss of 32 cents per share, last year.
Alamosa previously reported 49,000 net subscriber additions during the fourth quarter of last year, which was a 44-percent improvement compared with the 34,000 net customer additions reported for the fourth quarter of 2003. The carrier ended last year with 915,000 direct subscribers.
Alamosa also reported that customer churn dropped from 2.5 percent during the fourth quarter of 2003 to 2.3 percent last year. Average revenue per user also improved from $55 during the fourth quarter of 2003 to $58 last year, while the cost per gross addition dropped from $379 in 2003 to $364 last year.
While fourth-quarter results were in line with predictions, Alamosa also released 2005 guidance that was slightly below expectations. The carrier, which recently completed its acquisition of fellow affiliate AirGate PCS Inc., said it expects to add 180,000 net subscriber additions for the year and $315 million in earnings before interest, taxes, depreciation and amortization. Analysts were expecting the carrier to provide guidance of at least 190,000 net customer additions and EBITDA of around $325 million.
Alamosa added that it expects customer churn of less than 2.6 percent for the full year.
Alamosa’s stock was trading down more than 6 percent early Thursday at $11.60 per share.
