Sprint PCS Group, the wireless phone company owned by long-distance carrier Sprint, said on Tuesday that despite strong subscriber growth its fourth-quarter loss nearly quadrupled due to costs to build its wireless phone network.
Sprint PCS lost US$646.5 million in the fourth quarter, compared to losses of $161.8 million a year ago.
Sprint assumed ownership and management control of Sprint PCS in November. The fourth quarter was the first time Sprint PCS has reported its earnings separately.
Sprint PCS, the nation's largest personal communications services wireless phone service provider, added 836,000 new subscribers in the fourth quarter. The company had 2.59 million subscribers nationwide at the end of 1998, and served 225 metropolitan markets. Average revenue per user was $55 in the 1998 fourth quarter.
Kansas City, Missouri-based Sprint took control of Sprint PCS from its cable company partners, Tele-Communications Inc., Comcast, and Cox Communications. Sprint plans to proceed with a $500 million public offering of Sprint PCS' common stock, after delaying the offer in October due to weak conditions in the US stock market.
Sprint Corp. (FON) itself, the No. 3 US long-distance telephone company, posted lower than expected fourth quarter earnings as expenses from its Global One international joint venture offset strength in its core long-distance business.
Sprint earned $404.6 million or 79 cents a share, compared with earnings of $356.7 million or 72 cents a share a year ago. The results fell below Wall Street expectations of 85 cents a share, according to First Call, which tracks earnings estimates.
Copyright© 1999 Reuters Limited.
