Sprint Nextel announces first quarter results
26 Apr 2006 | Financial , Sprint Nextel | 0 comments
Sprint Nextel today reported first quarter 2006 financial results. In the quarter, the company experienced strong demand for its communications services. The company added 1.3 million net subscribers including 563,000 under the Sprint and Nextel post-paid brands, 502,000 under the Boost Mobile brand and 273,000 through wholesale channels and from Sprint PCS affiliates. Approximately 1.6 million subscribers were transferred from affiliates to the direct category as a result of acquisitions completed in the quarter.
Total retail gross additions were 4.1 million, compared to 3.6 million in the first quarter of 2005 and 4.0 million in the fourth quarter. Post-paid churn of 2.1 percent in the quarter was consistent with the year-ago period and the fourth quarter. ARPU of a little over $62 in the quarter declined 3 percent, compared to the year-ago period. The decline was 1 percent sequentially. Affiliate acquisitions were a significant contributor to both the annual and sequential declines in post-paid ARPU. Equipment revenues increased 22 percent compared to the year-ago period, mainly due to higher average revenue per handset.
Internet revenues were up 17 percent sequentially, due to strong demand for Dedicated IP and MPLS. This was partially offset by reduced ATM and Frame Relay revenues.
Here are the highlights:
- Revenues of $8.5 billion increased 13% from first quarter of 2005
- Adjusted Operating Income of $469 million increased 7% compared to $440 million in the year-ago period
- Adjusted OIBDA* of $2.7 billion increased 15% from the year-ago period
- 1.3 million wireless subscribers added combined with 2.1 million from Nextel Partners
- total of 51 million wireless subscribers
~ 0 comments ~