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VoiceStream loss widens
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May 7, 2001: 5:41 p.m. ET
Wireless service provider's losses mount as it prepares for megamerger
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NEW YORK (CNNfn) - VoiceStream Wireless Corp. reported a first-quarter loss that more than tripled from the same period a year earlier as rising costs offset soaring revenue.
The company, which is being acquired by Germany's Deutsche Telekom AG, said it lost $651.2 million, or $2.54 per share, during the quarter ended March 31. That compares with a loss of $203.3 million, or $1.66 per share, during the same quarter last year.
VoiceStream's loss was a penny narrower than the $2.55 per share analysts had generally expected the company to lose, according to a survey conducted by earnings tracker First Call.
At $732.1 million, VoiceStream's total revenue in the first quarter soared 183 percent from $258.4 million during the year-ago quarter. Subscriber revenue rose to $500.2 million from $170.8 million.
Meanwhile, the company's operating expenses jumped to $1.2 billion from $377.6 million.
During the quarter, VoiceStream said it added 409,100 post-paid subscribers and 75,600 prepaid customers, bringing its total customer base to 4.39 million.
Earlier this month, U.S. regulators gave final approval to Deutsche Telekom, which has agreed to buy VoiceStream for roughly $26 billion.
The deal is expected to close on May 31, 2001, VoiceStream said.
Shares of VoiceStream (VSTR: down $1.13 to $100.93, Research, Estimates) fell $1.13 to $100.93 on Nasdaq ahead of the earnings news, which was released after the closing bell. They rose 67 cents to $101.60 in extended-hours trade. 
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