“Sprint has turned the corner,” said Gary Forsee, Sprint chairman and CEO, although it still faces “significant challenges related to competition, pricing regulation and technology.” At its annual investment community meeting in New York, Sprint outlined its financial expectations for 2004, including:
- Sprint PCS Group anticipates total service revenue growth to be in the high-single digits in 2004. The growth in revenues is expected to be driven by a larger customer base, stable ARPU aided by a growing contribution from data services and a strong gain in wholesale services. Adjusted EBITDA is targeted to be between $3.8 billion and $3.9 billion in 2004. CAPEX is expected to rise to $2.4 billion in 2004, with spending relatively evenly distributed between improving network capacity and coverage and providing new capabilities. Assuming continued growth and service demands, the PCS Group expects capital expenditures to be around these same levels in 2005.
- Sprint’s Local Telecommunications Division expects is full year 2004 revenues to decline at a low single-digit rate. In the coming year, revenue growth associated with bundled services and broadband sales is expected to be offset by a modest decline in access lines.
- Sprint’s Global Markets Division expects its full-year 2004 revenues to decline at a mid single-digit rate. The FON Group expects continued growth in data revenues to be offset by declines in voice-related revenues due to intense competitive pressures.
- The FON Group’s CAPEX is expected to be $1.6 billion in 2004, consistent with 2003 levels. In 2004, the Global Markets Division has targeted capital of a little under $500 million, while the Local Division capital expenditures are expected to be a little over $1 billion.
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