OKLAHOMA CITY—Dobson Communications Corp. reported a third consecutive quarter of profits and increases to its subscriber base, and the company said it hopes to maintain its momentum as it enters 2007.
Dobson added 23,500 net customers during the third quarter, including 11,300 postpaid customers and 14,500 prepaid users. The company also reported the loss of 2,300 reseller customers. Last year Dobson reported an overall loss of 24,100 customers during the third quarter. The regional carrier ended the quarter with nearly 1.6 million subscribers. Of those subscribers, 86 percent overall and 90 percent of postpaid customers were on GSM calling plans, according to Dobson.
Dobson’s customer growth was propelled by improved gross additions that jumped more than 6 percent year-over-year to 139,500 customers, and improvements in its postpaid churn rate from 2.82 percent last year to 1.95 percent this year.
Dobson’s average revenue per user continued to increase as well, from $46.77 in the third quarter of 2005 to $49.16 in 2006’s third quarter. Data ARPU increased both year-over-year and sequentially, jumping from $2.56 in 2005’s third quarter and $3.79 in 2006’s second quarter to $4.34 in the third quarter of this year.
Roaming revenue was up as well, although the average yield per minute decreased. Dobson reported $87.4 million in roaming revenue for the third quarter, up from $80.4 million a year ago. The average yield was at 10.3 cents per minute, down from 12 cents per minute in 2005’s third quarter.
The carrier’s total operating revenue increased from $315 million during the third quarter of 2005 to $336 million this year. Dobson’s net income applicable to common shareholders surged from a loss of $65.9 million last year to a return of nearly $26 million this year. Net income for the quarter included a $7.9 million income tax benefit.
Dobson’s president and chief executive officer, Steve Dussek, said that the carrier “is poised to complete a strong 2006 and to continue growing (earnings before interest, taxes, depreciation and amortization), operating margins and free cash flow in 2007. Our goal is to continue improving the overall customer experience companywide.”
