Tuesday, April 19, 2005

Sprint Reports Double-digit Growth in Wireless

Sprint added 1.3 million total net wireless subscribers in Q1 2005, a 34% increase from the first quarter of 2004, giving it a total of 26 million. The subscriber gains included 518,000 from direct retail channels and nearly 800,000 from wholesale partners and Sprint PCS Affiliates. Wireless data services contributing $6.00, or nearly 10%, to ARPU. There were 8.0 million data subscribers, including more than 6.7 million Sprint PCS Vision subscribers. Sprint continues to build out the EV-DO network.

During Q1, total voice revenues decreased 10% from the year-ago period. Consumer voice revenues declined 20% while business voice revenues, including wholesale and affiliates, declined by 8%. Sequentially, consumer decreased 4% while business declined 1%.

Data revenues decreased 9% from the first quarter of 2004, but increased 2% sequentially on improving private line revenues. Dedicated IP revenue grew more than 9% from the year-ago period and nearly 8% sequentially, partially reflecting Sprint's efforts to drive traffic to more advanced networks. Sprint's overall reported IP revenues were impacted by the sale of wholesale Dial IP service in the fourth quarter of 2004.

At quarter's end, Sprint served more than 250,000 cable subscribers with wireline service.

For the quarter, Sprint reported diluted earnings per share of 31 cents compared to 16 cents in the first quarter of 2004.

In the quarter, Sprint's total business revenues showed a small decline when compared to the first quarter of 2004. Consumer revenues outside of Sprint's Local territories increased 8% year over year, while consumer revenues within Local territories declined 1% from the year-ago period.

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