(Associated Press via NewsEdge) Sprint Nextel, the third largest wireless carrier in the US, said that fourth-quarter profits rose 33% on stronger revenue, but the company continued to lose high-quality subscribers.
The company reported earning $261 million during the October-December period, compared with $195 million, a year earlier.
The fourth quarter earnings were one penny better than that expected by analysts surveyed by Thomson Financial.
Revenue for the quarter rose 6% to $10.44 billion from $9.79 billion, surpassing analysts' prediction of $10.39 billion.
The company's customer base grew by 1.3 million customers during the quarter, to end the year at 53.1 million.
But that number reflected gains in less-valuable 'pay-as-you-go' customers, whereas monthly subscribers, who tend to generate more revenue, fell by 306,000. And once again, most of the lost 'post-paid' customers came from the Nextel side, which has been struggling with network quality issues.
Nextel's subscribers are especially valuable because many of them are business users with higher monthly bills.
The company first warned of disappointing subscriber numbers in January, adding that it planned to cut 5,000 jobs.
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