PCS earnings....
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SPRINT PCS GROUP HIGHLIGHTS
``While Sprint PCS continues to attract new customers and make dramatic progress in top-line revenue and operating cash flows, it also has achieved consistent improvement in other metrics including average monthly revenue per user, average acquisition costs and cash cost per user,'' Esrey said.
The PCS Group reported total net operational additions of 839,000 in the quarter, a 16 percent increase from the same period a year ago. Including 72,000 customers that were purchased from a reseller in the quarter, net direct customer additions were 911,000. With the inclusion of approximately 122,000 additional resale customers and approximately 126,000 affiliate customers, total users increased by just under 1.16 million in the quarter.
In the quarter, the Sprint PCS nationwide network, already the nation's largest all-digital wireless network, continued its rapid expansion and, including coverage by affiliates, now covers 213 million people or more than three-quarters of the U.S. population. Sprint PCS is now the fourth largest wireless carrier in terms of customers with 8.61 million direct and resale customers and more than 550,000 affiliate customers.
* Average monthly revenue per user (ARPU) increased to $59, up from the
$54 in last year's third quarter. The higher ARPU was driven by new
activation fees and continued strong customer usage which averaged just
under 7 hours per month per user.
* Total net operating revenues for the quarter nearly doubled
to $1.67 billion from $844 million the same quarter a year ago.
* Operating cash flows were $122 million for the quarter compared to a
loss of $397 million a year ago.
* Net loss for the quarter was 41 cents per share, or $390 million,
compared to 65 cents per share, or $615 million, a year ago.
* Cash cost per user for the quarter dropped to $32 from $44 a year ago,
and the cost to acquire customers decreased to approximately $360
from approximately $450 a year ago.
* Capital expenditures were $675 million for the quarter reflecting the
continued geographic and capacity expansion of the company's wireless
network.
In the quarter, Sprint PCS announced Wireless Web for Business, a full suite of wireless data products and services offering clear, wireless access to enterprise content and applications, including corporate e-mail, Intranets, corporate directories, and sales and service e-Business tools via Internet-ready Sprint PCS phones. To develop and jointly deliver the new services for business, Sprint PCS formed alliances with leading application providers and systems integrators, including Lotus, Wireless Knowledge, Siebel Systems, Sabre Holdings Corporation and PeopleSoft. Additionally, the new business suite includes faster wireless Internet access comparable to land-line dial-up access of 56.6 kbps.
Sprint PCS also announced Voice Command, the first nationwide, network-based, voice-activated dialing and information service. By using their voices, customers can dial a number, look up directory names, modify address book entries and perform various speech-enabled, voice-independent functions while using any Sprint PCS phone.
Also in the third quarter, Sprint PCS announced the addition of several new content partners as it continues to expand its industry-leading Wireless Web service. Content providers announced during the third quarter included: Britannica.com, Inc., giving Sprint PCS Wireless Web users access to the 32-volume Encyclopedia Britannica along with valuable local information; eFrenzy, the premiere online and real-time services marketplace for consumers and small businesses; Marketwatch.com, providing financial-market quotes and real-time news headlines from CBS Marketwatch.com; and PGA.com, offering golf-related news, scores and event coverage surrounding major PGA championships. |
