Sprint’s revenue growth led all large-cap telecom companies in the U.S. for 2000.
I am extremely pleased with Sprint’s performance this year, and I continue to be very optimistic about Sprint’s future growth, said William T. Esrey, Sprint chairman and chief executive officer. It is clear that the telecommunications industry is undergoing a significant transformation. Underlying this transformation is a shift from voice to data, from calling minutes to bits and bytes, from wireline to wireless. We will transition our revenue mix that is today predominantly wireline voice to higher growth areas of data, wireless and local broadband services.
With the rapid growth of Sprint’s broadband and wireless footprint, a unique portfolio of data and mobile products and services, and exclusive technology like Sprint IONsm, I believe we have the assets and products in place to be the next-generation leader in delivering broadband services to both businesses and consumers. Given the insatiable demand for bandwidth, this gives us an enviable leadership position, he said.
SPRINT PCS GROUP HIGHLIGHTS
The PCS Group reported nearly 1.25 million new subscribers, which included approximately 1.2 million direct subscriber additions and approximately 50,000 resale subscriber additions in the fourth quarter. The quarterly subscriber growth represented a 19 percent increase over fourth quarter 1999. For the year, Sprint PCS added nearly 4.1 million subscribers to end the year with 70 percent more subscribers than a year ago. Sprint PCS ended the year with a total of more than 9.85 million subscribers. Sprint PCS affiliates ended the year with more than 800,000 subscribers.
Average monthly revenue per user (ARPU) for the quarter grew to $60 compared to $58 a year ago. For the year, ARPU was over $59, up 2.6 percent from $58 last year.
Total revenues increased 84 percent to $1.94 billion in the fourth quarter compared to $1.06 billion a year ago. Annual revenues rose 88 percent to $6.34 billion from $3.37 billion in 1999.
Operating cash flows (EBITDA) were a positive $21 million for the quarter compared to a loss of $501 million in the fourth quarter a year ago. For the year, operating cash flows were a $27 million loss compared to a loss of $1.71 billion a year ago. The PCS Group has now been EBITDA positive for three consecutive quarters.
Capital expenditures were $937 million for the quarter and $3.05 billion for the year, reflecting continued capacity expansion, and increased coverage for the company’s nationwide wireless network and development of new service capabilities.
