iPCS sees solid subscriber growth

Sprint Nextel Corp. affiliate iPCS Inc. reported a larger net loss for the first quarter despite increased revenues.
The company reported revenues of $120.9 million, an increase from revenues of $112.5 million reported during the same quarter last year. Revenues were just shy of the $123.05 million analysts predicted the company would report.
Net loss was $19.1 million, larger than net loss of $17 million during the same period last year.
IPCS said it added a total of 75,700 subscribers, way up from the 57,400 added during the first quarter last year. Net additions totaled 29,700, more than double the 13,000 net additions the carrier logged for the first quarter of 2006. The company said it serves a total of 590,900 subscribers.
The company said its churn rate was 2.3% for the quarter, an improvement from churn of 2.6% for the prior first quarter.
“We were very pleased with our subscriber additions during the quarter, which greatly exceeded our additions in the year ago quarter,” remarked Timothy Yager, president and CEO of iPCS. “This activity reflected both higher gross additions and lower churn driven by our initiatives to improve our wireless network while continuing to build and refine our distribution system. Although this growth and its related costs negatively impacted our results for the quarter, we believe that it positions us well for the balance of the year and 2008.”