Tuesday, July 19, 2005

Cingular Wireless Adds 1.1 Million Users

Cingular Wireless, posted strong Q2 results driven by continued subscriber growth, improvement in margins and postpaid churn, and strength in data and enterprise services. Some highlights of Q2:

  • net subscriber additions were 1.1 million, nearly all of which were postpaid. Second-quarter postpaid net additions were comparable to the number delivered in the first quarter of 2005, and represent the third straight quarter of more than 1 million postpaid net additions.

  • Gross additions were 4.4 million. Postpaid churn improved sequentially to 1.8 percent -- a record low for the company.

  • At the end of Q2, 90% of the company's total combined minutes were carried on its GSM network. Seventy-eight percent of Cingular's subscriber base was GSM-equipped by the end of the second quarter, up from 72 percent in the first quarter of 2005. More than 7 percent of Cingular's customer base upgraded handsets during the second quarter --almost entirely onto GSM.

  • Q2 revenues were $8.6 billion, which is an improvement of 5.4 percent over pro forma revenue of $8.2 billion during the year-ago second quarter and up 4.6 percent versus the first quarter of this year.

  • ARPU was $50.43, up 1.7 percent from $49.59 in the first quarter of this year but down 5.6 percent from pro forma ARPU in the year-ago second quarter.

  • ARPU from data services increased more than 12 percent to $4.16 compared to $3.70 in the first quarter of this year.

  • Cingular delivered 5 billion text messages during the quarter.

  • The company said it remains on track to launch UMTS/HSDPA in 15-20 markets by the end of 2005.

See also