C'mon Guys .... it's not that bad !!! :-)
Amazing, the Q1 report out today, heavy action on the stock, and only a few comments on this thread (Thanks Arnie and Ron).
Somebody didn't like what they saw in the Q1, as evidenced by the afternoon drop.
We know the build-out is going to cost, and it seems the loss is right in line with expectations (including the foreign expenditures, per Arnie's suggestion). The new subs were great. Nextel is growing. Only 10% of the digital came from analog roll-over - this should clarify some previous questions here.
The churn and ARPU may have been interpreted as negative. I think they're fine. I wouldn't be surprised if the ARPU drops into the $58 - 62 range as the network (and subscriber base) matures. Maybe Nextel can keep the ARPU in the high 60's with new services, but we'll see.
The churn should be watched. Mature incumbent cellular are much higher than Nextel's 1.5 - 2.0%. The press release says that Nextel dropped non-paying customers, making the churn higher than it would have otherwise been.
Per my post several days ago, I think the April 15 release date may have been a tip-off that the news would have a near-term negative impact.
The company is following and exceeding their business plan. I say "Great first quarter". How about the rest of you? Al, you ready to join the party?
Rob |
