Triton PCS Holdings Inc. reported fourth-quarter 2004 and annual 2004 financials that included declining average revenue per user and increased churn. The carrier said the transition of customers related to its property exchange with Cingular Wireless L.L.C. and AT&T Wireless Services Inc. during the fourth quarter of last year resulted in an impact on its subscriber totals and financial statement.
The company ended last year with 951,745 subscribers, including a net gain of 71,430 subscribers from the AT&T/Cingular transaction. Triton PCS swapped network assets and customers in Virginia for AT&T Wireless network assets and customers in North Carolina, Puerto Rico and the U.S. Virgin Islands.
“With the Cingular and AT&T Wireless transaction completed, we are moving aggressively to transition former AT&T Wireless subscribers to our systems,” said Michael E. Kalogris, Triton PCS chairman and chief executive officer. “However, our fourth-quarter results reflected continued confusion in the marketplace, which resulted in fewer subscribers at the end of the year than we expected. Additionally, the longer time frame for transitioning subscribers and integrating our new networks means we won’t realize projected synergies this year. The combination of these factors will result in 2005 adjusted EBITDA being significantly lower than previously thought.”
The company reported full-year 2004 adjusted earnings before interest, taxes, depreciation and amortization of $208.3 million and net cash from operating activities of $85.2 million. For the fourth quarter, adjusted EBITDA was $43.9 million and net cash from operating activities was $12.8 million.
Fourth-quarter revenue was $195.5 million compared with $201.5 million during the same quarter last year, said the company. For the year, revenues came in at $818.2 million compared with $810.1 million during 2003.
ARPU was $54.66 in the fourth quarter vs. $55.32 in the third quarter and $55.73 during the fourth quarter of 2003. Churn during the quarter was 3.2 percent, up from the 2.6-percent churn level the company reported in the fourth quarter of 2003.
