KIRKLAND, Wash.—Nextel Partners Inc. added 105,400 net customers in the fourth quarter of 2005 and bumped up its average venue per user by $1, while maintaining its churn rate at about 1.4 percent, the company reported.
The largest Sprint PCS affiliate is in the process of being purchased by Sprint Nextel Corp. for $6.5 billion; the deal was agreed to in December and is expected to close in the second quarter. John Chapple, who serves as president, chief executive officer and chairman of the board for Nextel Partners, said he was especially proud of the company’s accomplishments “in light of the ongoing merger activity during the year.”
The company reported service revenue of nearly $1.7 billion for 2005, up 31 percent from 2004 service revenues of $1.29 billion. Fourth-quarter revenues saw a 30-percent jump to $460.5 million. Adjusted earnings before interest, tax, depreciation and amortization was $575.2 million for the year and $154 million for the quarter; excluding merger and hurricane expenses, adjusted EBITDA was $605.9 million for the year. Diluted net income per share of common stock was $1.96 for the year.
Partners’ ARPU for the fourth quarter and the year checked in at $68, up from $67 for the fourth quarter and end of 2004. When roaming revenues were included, ARPU was about $78 in the fourth quarter and for 2005. The company ended 2005 with 2.018 million customers.
“Nextel Partners continued to deliver very positive top- and bottom-line results in 2005,” said Barry Rowan, Partners’ chief financial officer. “We are pleased to see the solid operating performance throughout the year continue through the fourth quarter.”
