In what is expected to be its final quarterly financial report before being acquired by Alltel Corp. later this year, Western Wireless Corp. posted a company record 58,600 domestic net customer additions during the first quarter of this year. The company noted the growth was a 150-percent improvement compared with its first-quarter 2004 results and that it ended the quarter with 1.454 million domestic customers.
Western Wireless attributed the robust growth to a drop in postpaid customer churn from 1.9 percent last year to 1.5 percent this year. The carrier noted successful retention efforts and improved network quality contributed to the reduced customer churn.
Average revenue per user dropped from $47.80 during the first quarter of 2004 to $46.56 this year, while the cost per gross addition plunged from $422 last year to $353 this year. Western Wireless also noted that while its cash cost per user increased from $23.04 last year to $24.88 this year, the per-minute cost dropped from 4 cents per minute to 3.9 cents per minute.
Total domestic revenues increased 6.4 percent year-over-year from $249.4 million during the first quarter of 2004 to $265.4 million this year. Bolstered by its multi-technology network, roaming revenues also increased 6 percent from $48 million in 2004 to $50.8 million this year. Western Wireless added that its recently launched GSM roaming services represented 38 percent of total roaming minutes during the first quarter.
Despite the increased revenues, domestic net income dropped from $39.4 million during the first quarter of 2004 to $25.9 million this year. Consolidated net income also dropped from $36.2 million during the first quarter of 2004, or 37 cents per share, to $5.3 million this year, or 5 cents per share. Western Wireless noted that its first-quarter 2005 consolidated net income included $10 million in expenses related to its pending acquisition by Alltel and a $24 million non-cash charge for the partial impairment of its Slovenian business.
Western Wireless Chairman and Chief Executive Officer John Stanton added the company is actively taking bids on the potential sale of its international operations, but would not comment on a time frame for a possible sale.
