REDMOND, Wash.-Following a dramatic first quarter in which it lost more than 380,000 subscribers and was acquired by rival Cingular Wireless L.L.C., AT&T Wireless Services Inc. posted relatively positive second-quarter results. The results included the addition of 15,000 net customers, bolstered by a reduction in churn from 3.7 percent during the first three months of the year to 3.4 percent in the second quarter. The carrier attributed the improvements, which were in line with analyst estimates, to enhancements to its GSM network and the launch of more attractive rate plans.
“Our second-quarter results show we are on the rebound from our disappointing first quarter,” said John Zeglis, chairman and chief executive officer of AWS. “Sequential improvements in practically all of our key metrics demonstrates that the initiatives we launched earlier this year are making a difference.”
Despite the improvements from the first quarter, AWS’ second-quarter results paled in comparison to its second-quarter 2003 results when the carrier posted 446,000 net customer additions and a 2.2-percent churn rate. Average revenue per user also dropped from $60.60 during the second quarter of 2003 to $58.80 this year, which the carrier attributed to lower average monthly recurring charges and higher promotional incentives.
Total revenues increased 1.5 percent year-over-year from $4.16 billion during the second quarter of 2003 to $4.22 billion this year, while net income dropped more than 73 percent from $228 million last year, or 8 cents per share, to $61 million this year, or 2 cents per share.
