Regional wireless operator Centennial Communications Corp. said it lost 500 domestic wireless customers during its third fiscal quarter of 2005 ending Feb. 28-compared with a gain of 700 subscribers the previous year-finishing the quarter with 544,900 total domestic wireless subscribers. The carrier attributed the loss to its emphasis on profitability in its U.S. wireless markets, adding that it expects renewed subscriber growth from the impending launch of its Grand Rapids and Lansing, Mich., markets that are scheduled to be built out later this year.
Domestic customer churn increased slightly from 2.5 percent last year to 2.6 percent this year, while average revenue per user jumped from $45 to $48 during the same time frame.
Centennial’s Caribbean wireless operations added 74,900 subscribers during the third quarter, ending the period with 618,300 total wireless customers. The carrier noted the increase was due to steady postpaid customer growth in its Puerto Rico operations combined with record prepaid subscriber growth in its Dominican Republic operations.
The carrier’s Caribbean operations also posted flat customer churn of 3.5 percent and a dip in ARPU from $56 during the third fiscal quarter of 2004 to $52 this year.
Centennial’s domestic revenues increased 6 percent year-over-year from $91.4 million in 2004 to $97.3 million this year, boosted by a 15-percent increase in roaming revenues from $12 million in 2004 to $13.8 million this year. Centennial’s management noted the increase in roaming revenues was a result of increased traffic on its GSM network, but added that it did not expect long-term growth in roaming revenues.
The company’s Caribbean wireless operations posted a 16-percent increase in total revenues from $77.8 million in 2004 to $90.5 million this year, while total Caribbean revenues jumped 19 percent from $104.5 million to $124.6 million.
Consolidated revenues increased 13 percent from $195.8 million during the third fiscal quarter of 2004 to $221.8 million this year. Consolidated net income jumped from a loss of $15.5 million in 2004, a loss of 15 cents per share, to a return of $28.9 million this year, or a return of 27 cents per share.
Centennial’s management also said it expects to surpass its previously announced growth in consolidated adjusted operation income of 7 percent to 12 percent for the fiscal year due to stronger-than-expected roaming revenue, non-recurring Universal Service Fund revenue related to a prior year of $5.5 million in U.S. wireless, and $3.6 million of non-recurring items related to inter-carrier compensation adjustments in Caribbean broadband.
Centennial’s stock was trading up more than 3 percent Thursday at $11.69 per share after hitting a new 52-week high of $12.77 earlier in the day.
