Sprint PCS affiliate UbiquiTel Inc. reported $66 million in total revenues during the recently completed second quarter, a 23-percent increase compared with the $53.6 million the carrier reported last year. The carrier added that roaming revenues dropped 9 percent year-over-year. Net losses improved from $31.1 million during the second quarter of 2002, a loss of 38 cents per share, to $8.9 million this year, a loss of 11 cents per share.
UbiquiTel also noted it generated $3.9 million in free cash flow during the second quarter of this year aided by an $8.1 million federal income tax refund, and with recent deals with Sprint PCS it expects to post positive free cash flow for the full year beginning in 2004.
“In addition to our strong second quarter operating performance, we are equally pleased with the Qwest [Communications International Inc.] wholesale and Sprint Montana coverage agreements announced last week that will enhance our earnings potential and reduce our future capital expenditure requirements,” explained Donald Harris, chairman and chief executive officer of UbiquiTel.
UbiquiTel said it added 17,600 net customers during the second quarter of 2003, which was ahead of the 15,700 net subscriber additions the carrier reported for the second quarter of 2002. The increase was helped by a slight increase in gross subscriber additions during the quarter from 41,000 customers last year to 42,000 subscribers this year and a reduction in customer churn from 4.1 percent during the second quarter of 2002 to 2.9 percent this year.
UbiquiTel also reported average revenue per user remained steady at $58 year-over-year, cash cost per user dropped from $69 last year to $46 this year, and the cost per gross addition fell from $456 during the second quarter of 2002 to $452 this year.
