LOS ANGELES—Dobson Communications Corp. posted mixed results for the fourth quarter, earning increased average revenue per user, losing more money overall than the same quarter last year, and seeing its subscriber numbers continue to slide—but not as steeply as the same period in 2004.
The company posted a loss of $27.3 million, or 16 cents per share. That loss included extinguishment of debt, repurchases of preferred stock and an income tax benefit of $16.2 million. The company lost 10 cents per share, or $13.9 million, in the same period of 2004. Dobson gained 122,600 gross new subscribers, but overall lost 22,500 customers; 25,600 net subscribers left in the same time period last year. Postpaid customer churn was up 11 percent quarter-over-quarter, from 2.35 percent to 2.62 percent.
However, other financial indicators were positive. Dobson’s ARPU, which includes postpaid, prepaid and reseller customers along with Eligible Telecommunications Carrier payments, reached $46.10, up from $42.17 for last year’s fourth quarter. The company’s total revenue was up 11 percent quarter-over-quarter to $294 million, and roaming revenue climbed 19 percent from the fourth quarter of 2004 to land at $63.4 million. Dobson noted that roaming revenue accounted for 21.5 percent of its total quarterly revenue, as opposed to 20.1 percent of the same quarter last year.
Dobson ended 2005 with about 1.54 million customers, with more than 67 percent of them on GSM calling plans. During the fourth quarter of 2005, about 84,000 subscribers switched to GSM from TDMA, and GSM roaming accounted for approximately 91 percent of roaming traffic, the company reported.
