Regional wireless operator SunCom Wireless Holdings Inc., which was formerly known as Triton PCS, posted 3,979 net customers during the second quarter compared with a loss of 833 customers during the second quarter of last year. SunCom said it ended the first half of the year with 965,106 subscribers.
The former AT&T Wireless Services Inc. affiliate managed the customer turnaround despite a surge in customer churn from 2.63 percent during the second quarter of 2004 to 3.2 percent this year. SunCom Chairman and Chief Executive Officer Michael Kalogris attributed the growth to record second-quarter gross customer additions.
SunCom’s ARPU increased modestly from $56.68 during the second quarter of 2004 to $56.73 this year. SunCom also cut its cost per gross addition from $439 during the second quarter of 2004 to $427 this year, though cash cost per user jumped nearly 27 percent from $38.34 last year to $48.63 this year.
The higher CCPU was attributed to the migration of former AWS customers to SunCom’s network during the quarter. Kalogris added that SunCom has nearly completed the migration of the former AWS customers it acquired through a market swap with AWS and Cingular Wireless L.L.C. last year to the SunCom network.
“With the extraordinary efforts of all of our employees, we met the operational challenges of migrating customers, which required us to reach all former AT&T Wireless customers to re-set or upgrade their handsets,” Kalogris said. “The company also assumed operation of the former AT&T Wireless networks in North Carolina and Puerto Rico, and at the beginning of August, substantially completed the migration of the AT&T Wireless customers to the SunCom Wireless system.”
Despite the mixed operational metrics, SunCom managed a 7-percent increase in service revenues during the quarter, which was offset by a 40-percent drop in roaming revenues and resulted in flat year-over-year revenues of $212.9 million. SunCom said the roaming revenue drop reflected the lower rate and decreased minutes associated with its Cingular roaming agreement, which took effect during the fourth quarter of last year.
The flat revenues and increased expenses conspired to drive up net losses from a loss of $31.6 million during the second quarter of 2004, a loss of 47 cents per share, to a loss of $106.1 million this year, or a loss of $1.56 per share.
Investors shrugged off SunCom’s financial troubles, sending the carrier’s stock up nearly 7 percent early Friday to $2.75 per share.
