Nextel had a terrific year, said Tim Donahue, Nextel’s CEO. In 2000, Nextel delivered on our global objectives and continued to lead the wireless industry in subscriber quality. Domestic operations added 2.16 million new subscribers and we achieved our goal of $1.40 billion in domestic operating cash flow for the year. In 2001, Nextel will continue to enhance our global networks, and expand our product and service offerings, as we broaden our appeal to high-end customers and prepare for continued growth in the highly competitive global wireless marketplace.
Consolidated operating revenues rose 51% from $3.79 billion in 1999 to $5.71 billion in 2000. Domestic operating revenues were $5.38 billion, while Nextel International reported $330 million in operating revenues. Consolidated service revenues for 2000, which exclude digital handset and accessory sales of $426 million, rose 59% to $5.29 billion and include $4.98 billion from domestic operations and $309 million from Nextel International.
At the end of 2000, Nextel’s 7.63 million global proportionate subscribers were comprised of 6.68 million domestic subscribers, 881,700 proportionate International subscribers and 73,700 proportionate subscribers from Nextel Partners, Inc. Nextel’s domestic operations added approximately 521,200 new subscribers during the fourth quarter 2000 and 2.16 million subscribers during the year. Nextel’s proportionate share in Nextel Partners net additions during the fourth quarter is 17,800. Nextel International added approximately 150,900 proportionate subscribers during the fourth quarter 2000 and approximately 491,600 proportionate subscribers during the year.
Consolidated operating cash flow (earnings before interest, taxes, depreciation and amortization) for the entire year increased by 136% — from $535 million in 1999 to $1.26 billion in 2000. Consolidated operating cash flow grew 79% to $387 million during the quarter as compared with $216 million during the fourth quarter of 1999. For domestic operations, operating cash flow doubled during 2000 — from $698 million in 1999 to $1.40 billion in 2000. Domestic operating cash flow grew 67% to $418 million during the fourth quarter as compared with $251 million in the fourth quarter 1999. Nextel International’s operating cash flow loss of $133 million for 2000 was an improvement over the $163 million loss reported for all of 1999. For the fourth quarter of 2000, Nextel International’s operating cash flow loss was $33 million.
The consolidated loss attributable to common stockholders improved to $61 million during the fourth quarter 2000 as compared with a $369 million loss in the fourth quarter of 1999. The consolidated loss per share attributable to common stockholders was $1.35 for 2000 and $0.08 for the fourth quarter of 2000 and includes a gain on the exchange of Clearnet shares for Telus Corporation shares as previously disclosed in Nextel’s public filings.
In 2000, Nextel accomplished its financial goals, said John Brittain, Nextel’s CFO. Domestic subscribers grew 48%, service revenue grew 55%, and cash flow grew 100% to $1.40 billion. For 2001, we expect domestic revenues to exceed $7 billion, and cash flow growth of 50%-65%. We also expect that operating expenses will be significantly greater earlier in the year with accelerating cash flow growth in the second half of 2001. As a result, domestic operating cash flow in the first quarter of 2001 may not exceed fourth quarter 2000. With approximately $7 billion of liquidity, Nextel has the financial wherewithal to stay at the forefront of the exploding growth in the wireless industry.
Total minutes of use on the Nextel National Network grew 75% to 31.5 billion for the year 2000. In order to accommodate demand for service, Nextel added approximately 3,900 cell sites to its network during 2000 — bringing the total number of sites to approximately 12,700 at year end 2000. Nextel also brought 29 switches online during the year — which brings the total to 75 switches at year end. During the fourth quarter, Nextel added approximately 1,500 cell sites and five switches. Fourth quarter 2000 capital expenditures were $963 million for domestic operations and $174 million for international operations. Full year capital expenditures were $2.98 billion for domestic operations and $567 million for Nextel International.
Nextel has also recently committed to purchase additional spectrum in the 700, 800, and 900 bands. Giving effect to pending acquisitions, Nextel now has approximately 20 MHz of spectrum in the 800 and 900 bands in 52 of the top 100 U.S. markets and approximately 4 MHz of spectrum in the 700 band.
