CONSHOHOCKEN, Pa.-Sprint PCS affiliate UbiquiTel Inc. reported $88.7 million in revenues during the second quarter, a 34-percent increase from the $66 million the carrier posted during the second quarter of 2003. Net losses also improved from a loss of $8.9 million last year, a loss of 11 cents per share, to a loss of $6.8 million this year, or a loss of 7 cents per share.
UbiquiTel’s management noted that the company posted $3.5 million in operating income during the second quarter of this year, which was its first in company history, and it generated $3.7 million in free cash flow during the second quarter.
Second-quarter average revenue per user remained steady year-over-year at $58, while the cost per gross addition increased from $452 to $471, and the cash cost per user dropped from $46 to $43.
UbiquiTel previously reported that it added 16,900 subscribers during the second quarter, compared with 17,600 customers last year despite a drop in customer churn from 2.9 percent last year to 2.7 percent this year. The carrier also noted it was serving 46,900 total reseller customers at the end of second-quarter 2004 compared with no reseller customers last year, and that it ended the first half of the year with 365,900 customers compared with 291,800 subscribers last year.
UbiquiTel’s management also said the carrier has opted into Sprint PCS’ reseller agreement with AT&T Corp. announced earlier this year, and it will be compensated on a pass-through basis at tiered wholesale rates based on usage volume by AT&T customers. In addition, UbiquiTel and Sprint agreed to modify the monthly CCPU rate for back-office services from $7.70 to $7.63 per subscriber and the CPGA rate for customer acquisition services to $19 per gross addition.
