Regional wireless provider SunCom Wireless Holdings Inc., which formerly changed its name from Triton PCS Holdings Inc. earlier this month, said it added 9,382 subscribers during the first quarter of this year and ended the quarter with 961,127 total subscribers. The first-quarter customer growth was ahead of analysts’ expectations, but well below the 25,000 customers Triton PCS added during the first quarter of 2004.
The shortfall was attributed to a year-over-year increase in customer churn from 2.31 percent during the first quarter of 2004 to 2.9 percent this year, which offset a 4.6-percent increase in gross subscriber additions. SunCom’s management did note that the carrier’s first-quarter churn was an improvement compared with the 3.2 percent posted during the fourth quarter of last year.
Average revenue per user also improved from $54.73 during the first quarter of 2004 to $55.84 this year, which was in-line with estimates, while the cash cost per user increased from $37.63 last year to $39.32 this year.
SunCom posted a 3-percent increase in total revenues from $198 million during the first quarter of 2004 to $204 million this year, despite a drop in roaming revenues from $33.6 million last year to $23.8 million this year. The drop in roaming revenues was expected as recent spectrum and market swaps with Cingular Wireless L.L.C. have consolidated SunCom’s operations and allowed Cingular to compete directly against SunCom in its markets.
Net losses nearly doubled from a loss of $36.7 million during the first quarter of 2004, a loss of 60 cents per share, to a loss of $69.9 million this year, or $1.06 per share. The drop was attributed to increased selling, general and administrative costs, and amortization expenses.
