Subject: [NEXTEL-1] Market unimpressed by Nextel

From: [email-masked]
Date: Thu, 17 Jul 2003 16:32:03 -0400

Market unimpressed by Nextel’s strong 2Q
By Mike Dano
July 17 12:16:00, 2003

Nextel Communications Inc. reported a strong quarter of subscriber additions and
rising revenues, but the news didn’t help spur a market depressed by unimpressive
reports from industry heavyweights like Nokia Corp. and Motorola Inc.
Nextel announced second-quarter revenue of $2.6 billion, up 19 percent over the
same quarter last year. The carrier scored
$582 million in operating income and subscriber additions of 591,000. Nextel’s
subscriber base now clocks in at 11.7 million.
“This quarter represents Nextel's strongest performance to date,” said Tim
Donahue, the carrier’s president and chief executive
officer. “We are delivering on every front and producing record earnings, record
subscriber additions and garnering the most
valuable customers in the industry. Nextel continues to attract and retain the
most valuable customers in the industry due to our
differentiated wireless products and services, our targeted sales approach and our
enhanced back office systems.”
Nextel’s average monthly service revenue per subscriber was $69 for the second
quarter, up from $67 in the first quarter.
Customer churn was 1.6 percent.

The carrier said it is raising its expectations for the rest of the year.  Despite
the good news, Nextel’s stock was down about 2 percent following its report, to
about $19.60 per share. However SpectraSite's stock was up more than 2 percent on
Nextel’s earnings report, trading at $60.25. SpectraSite owns as majority of
Nextel’s towers and stands to gain if Nextel increases its tower builds later this
year.

In other carrier news, Rogers Wireless Communications Inc. in Canada reported a
14-percent jump in revenues and a 38-percent jump in operating profit over the
same quarter last year. The carrier counts about 3.7 million customers.
http://rcrnews.com/cgi-bin/news.pl?newsId=14339

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