Subject: [NEXTEL-1] Mobile phone subscriber growth lifts Nextel

From: Marcel <[email-masked]>
Date: Wed, 23 Apr 2003 13:24:38 -0400

http://biz.yahoo.com/ft/030423/1048313965489_1.html

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Mobile phone subscriber growth lifts Nextel
Wednesday April 23, 12:55 pm ET

By Jonathan Moules in New York

Nextel Communications on Wednesday confirmed its position as a strong player in the US mobile phone industry by reporting a 21 per cent increase in first-quarter revenues and healthy subscriber additions.

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The fifth-largest US wireless carrier has sidestepped the problems of slowing growth in the US market by cherry picking its rivals' best customers. In particular, Nextel has tailored its handsets and services to the needs of business users, offering a walkie-talkie function called Direct Connect that has proved a hit among construction workers and technicians.
Nextel, which is the process of making its Direct Connect service operate across the US, added 480,000 subscribers in the three months to March 31, finishing the quarter with 11.1m customers.
Revenues were $2.37bn, up from $1.96bn a year earlier. Net profit was $208m, or 21 cents per share, compared with a net loss of $654m, or 82 cents per share, in the year ago period.
The company generated $201m in free cash flow during the quarter and retired $568m in principal amount of its outstanding debt and redeemable preferred stock for about $570m in cash.
Tom Kelly, Nextel's executive vice-president and COO, said: "Nextel is focused on serving our traditional business customers and is successfully expanding into other high-value segments."
Although barely half the US population has a mobile phone and many households are substituting wireless service for their traditional phone lines, the growth of new customers has been slowing down for several quarters. Observers expect the increased competition to create a Darwinian division of the US carriers into winners and losers.
Sprint PCS, the fourth-largest player, disappointed Wall Street earlier this week with a wider loss and revenue that failed to meet expecations.
However Cingular Wireless, the number two carrier, overcame two straight quarters of customer losses to report 189,000 net additions in the first quarter on Wednesday.
Cingular, which is jointly owned by the Baby Bells Bellsouth and SBC Communications, reported revenue of $3.59bn from $3.54bn a year earlier.
Shares of Nextel were up 8 per cent at $13.39 in midday trade in New York.

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