Cingular Wireless Q2 2005 report

20 Jul 2005 | Cingular , Financial | 0 comments


Cingular Wireless today posted its second quarter report. In this quarter, Cingular generated profits of $147 million, down from $339 million in the same period of last year. This 56.6% downfall was because of the costs associated to the merger with AT&T Wireless. Cingular purchased AT&T last year for $41 billion.

Cingular registered a net subscriber additions of 1.1 million, now having a total of 51.6 million subscribers, gross subscriber additions of 4.4 million, postpaid monthly subscriber churn down to 1.8 percent, third consecutive quarter of improved postpaid churn; total monthly churn at 2.2%, a 340 basis-point sequential improvement in normalized OIBDA margin to 28.9%. The company also stated that 90% of the calls were on their GSM network.

"Cingular continues to make good progress on a variety of fronts," said Stan Sigman, Cingular's president and CEO. "We are pleased with our performance in margins, postpaid subscriber net additions, and revenue. These results show once again that our merger is working. We are making progress and growing the business, though we of course have a long way to go before our work is done. At the same time, we are improving, in large ways and small, how we serve our customers, who continue to choose Cingular and stay with Cingular."