Cingular Wireless experienced loss in the fourth-quarter due to expenses from buying AT&T Wireless.
The company did however add almost double the number of subscribers than many expected. Cingular ended the year with 49.1 million total subscribers.
According to a press release, in its first quarter of combined operations, the new Cingular delivered a net increase in subscribers of nearly 1.8 million on a pro forma basis, which incorporates results from AT&T Wireless for the first 25 days of October, includes net additions from other acquired properties and excludes results from markets that Cingular has agreed to divest. This increase was more than double Cingular’s pro forma net subscriber additions in both the preceding quarter (808,000) and the year-ago fourth quarter (736,000). It was Cingular’s highest net-add quarter ever, when historical results of Cingular and AT&T Wireless are combined. Not counting net customer additions of AT&T Wireless for the first 25 days of the quarter and other pro forma adjustments for dispositions and other acquisitions, reported net customer additions were 1.7 million.
“The merger is working, and it is everything we had hoped it would be. The new Cingular is off to a very strong start,” said Cingular Wireless President and CEO, Stan Sigman. “We developed a thorough, disciplined integration plan to follow through on our acquisition of AT&T Wireless. Our execution of that plan has been crisp, with all initiatives on or ahead of schedule. And customers have responded very positively, choosing Cingular — and choosing to stay with Cingular — in record numbers.
Cingular’s gross customer additions in the fourth quarter totaled 5.7 million on a pro forma basis, the highest quarter ever when historical results of the two companies are combined, and average monthly pro forma subscriber churn declined significantly versus pro forma results for the third quarter of 2004 and the fourth quarter of 2003.
“In addition to outstanding volumes, I am particularly pleased that we have moved churn in the right direction right out of the gate,” Sigman added. “And I am very confident in our ability to deliver continued solid progress in both churn and margins as we move forward.
“Our goal at Cingular is to be the best wireless provider in the business,” continued Sigman. “To that end, we have developed focused plans to further expand and advance our network, enhance customer service and strengthen distribution – while delivering substantial operational cost synergies. We will execute with intensity in all of these areas in 2005, with the clear expectation of delivering steady progress to reach industry-leading metrics by 2007.”
Murdok | Breaking eBusiness News
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