Impressive subscriber growth:
>> VOICESTREAM'S LOSS WIDENS, EXPENSES SURGE
NEW YORK, Nov 6 (Reuters) - VoiceStream Wireless Corp. (NASDAQ: VSTR), a wireless telephone company being acquired by Germany's Deutsche Telekom AG (NYSE: DT), said on Monday its third-quarter loss widened as higher expenses and expansion costs offset strong subscriber growth.
The Bellevue, Wash.-based company posted a third-quarter loss of $661.3 million, or $3.02 a share, compared with a net loss of $93.0 million, or $0.97 per share a year ago.
Revenue surged to $562.2 million, compared with $134.9 million a year ago. Its adjusted EBITDA loss (or operating loss before non-cash charges) was $226.0 million. It did not provide a year-ago comparison.
The company added 501,200 subscribers in the quarter, bringing its total subscriber base to 3.1 million, including 2.3 million monthly subscribers and 748 thousand prepaid customers. The company said it was "optimistic" about the prospect for strong fourth-quarter subscriber growth, but it declined to provide a specific forecast.
Subscriber revenues for the third quarter of 2000 were $336.2 million, a 215 percent increase over the same quarter in 1999. Average revenues per subscriber was $52 a month, which was lower than some analysts expectations. VoiceStream added several customers late in September and these subscribers did not use their phones for the entire month, which pushed average revenues down.
VoiceStream has assembled a broad U.S. network through acquisitions of companies such as Omnipoint Corp. and Aerial Communications. It also recently agreed to acquire Powertel Inc. (NASDAQ: PTEL) and Cook Inlet's stake in joint ventures.
VoiceStream said it may expand its network reach further by participating in the upcoming auction of U.S. wireless telephone licenses.
The company filed applications with the Federal Communications Commission to bid on licenses available to large companies. It also aims to bid on markets reserved for smaller firms through its joint venture with Cook Inlet Regional Corp.
VoiceStream's aggressive expansion has had its costs. During the third quarter expenses jumped substantially to $1.07 billion, compared with 196.7 million a year ago.
VoiceStream blamed the increase on costs related to its pending acquisition by Deutsche Telekom, as well as investments to improve its distribution and operating capacity, and to shift to a new billing system.
The company said it is confident its $30 billion acquisition by Deutsche Telekom will close. The deal had sparked scrutiny from U.S. lawmakers due to concerns about how the German government's remaining 43 percent stake in Deutsche Telekom could affect competition.
The U.S. Justice Department has blessed the deal, but it still must pass muster with the Federal Communications Commission, as well as a task force that examines national security issues. <<
- Eric - |
