Nextel Communications Inc. reported record 2004 financial results, including a 24% increase in 2004 revenue to $13.4 billion, a 22% increase in operating income before depreciation and amortization (OIBDA) to $5.1 billion and a 107% increase in income to $3.0 billion, as compared with 2003. Some highlights of the report:
- Nextel ended 2004 with approximately 16.2 million total subscribers, up 22% from the 13.3 million total subscribers at the end of 2003.
- At year-end, the subscriber base consisted of 15 million subscribers of Nextel branded service and 1.2 million subscribers of Boost Mobile branded prepaid service.
- During 2004, Nextel added 2.9 million total subscribers consisting of 2.2 million Nextel subscribers and 755,000 Boost Mobile subscribers.
- During Q4, Nextel added 955,000 total subscribers consisting of 595,000 Nextel subscribers and 360,000 Boost Mobile subscribers.
- Total system minutes of use on the Nextel National Network increased 29% in 2004 to 130.2 billion. Q4 system minutes were 35.2 billion.
- In 2005, Nextel plans to begin the retuning spectrum to public safety and other radio systems.
- Capital expenditures were $574 million in Q4 and $2.35 billion for the year.
- 2005 capital expenditures are expected to be $2.6 billion
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- Nextel Communications formally accepted the FCC’s plan to exchange spectrum that potentially interferes with public safety communication systems. The multibillion dollar deal is expected to end years of legal wrangling.
- In December 2004, Sprint and Nextel Communications announced their plans to merge into a larger wireless and integrated communications service provider. The two companies currently serve more than 35 million wireless subscribers and 5 million additional subscribers through affiliates and partners.