Nextel Q1 2005, profits down customers up

Apr 28 2005 - 03:49 PM ET | Nextel

Nextel's first quarter statement reveals healthy subscriber growth but lower profits. Late last year Nextel agreed to be purchased by Sprint, though the deal has not yet been completed. Highlights of the statement include:

• Profit of $589 million, down from $593 million last year
• Revenye of $3.61 billion up from $3.1 billion last year
• 810,000 total subscriber additions, 496,000 Nextel and 314,000 from Boost Mobile
• Churn was flat at 1.5%
• Average revenue per user (ARPU) was still an industry high $67, but that's down from $68 a year ago.

Boost mobile is a pre-paid service owned by Nextel that is aimed at young people. Its innovative pricing for data and push-to-talk service have made it one of the more popular pre-paid options.