Subject: [NEXTEL-1] Nextel Posts Lower 3Q Profit, Raises Full-Year Outlook

From: [email-masked]
Date: Thu, 16 Oct 2003 13:47:28 -0400

Dow Jones Business News
Nextel Posts Lower 3Q Profit, Raises Full-Year
Outlook
Thursday October 16, 10:45 am ET

RESTON, Va. -- Nextel Communications Inc. (NasdaqNM:NXTL - News)'s third-quarter
net income fell 9.1%, on higher expenses and debt retirement charges, but the
wireless provider raised its earnings guidance for the year, as it looks forward
to a " strong finish."

The company said it earned $348
million, or 32 cents a share for the
quarter, down from $383 million, or
55 cents a share, a year earlier.
Earnings for the quarter matched
the Thomson First Call (News -
Websites) consensus estimate.

Revenue rose 27% to $2.89 billion
from $2.28 billion a year ago.

Nextel is known for its
walkie-talkie-like cellphone service,
using it to build a loyal customer
base. But giant Verizon Wireless
recently launched a similar service,
and Sprint PCS (PCS) and AT&T
Wireless Services Inc. (NYSE:AWE -
News) are planning to introduce their
own walkie-talkie features soon.

Nextel said it added about 646,000 subscribers during the third quarter, bringing
total subscribers to 12.3 million at Sept. 30. This doesn't include 245,000 ending
subscribers from Nextel's Boost Mobile unit, which added 102,000 subscribers
during the third quarter.

The company raised its guidance for the full year to reflect positive business
trends through the third quarter. The company said it achieved record results for
the latest quarter including operating income before depreciation and amortization
of $1.13 billion, or a 43% service revenue margin.

Nextel now expects 2003 earnings of at least $1.15 a share, up from its prior
guidance of at least $1 a share. Wall Street predicts earnings of $1.11 a share
for the year.

The company also anticipates free cash flow of more than $1 billion for 2003, up
from its previous view of $600 million, and operating income before depreciation
and amortization of $4.1 billion or more, up from a prior projection of $3.9
billion.
Nextel's average revenue per user was $71, up from $69 in the second quarter.
Churn, or customer turnover, was 1.4%, the lowest level since 1997.

"I have never been more pleased with the company's results or more confident about
our future and the momentum that we continue to see in the wireless sector," Chief
Executive Tim Donahue said during the company's conference call Thursday with
analysts.

http://biz.yahoo.com/djus/031016/1045000787_11.html
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