Sprint PCS posts growth but adds caution

(Telephony) Sprint PCS posted strong fourth-quarter results, but cautioned analysts about a potential slowdown in the market in light of signs that a slowing U.S. economy is on the horizon.

The carrier said to expect net subscriber additions comparable to the 4.1 million it added in 2000, but indicated a slower economy could change that figure.

"As we head into 2001, we are seeing some signs of a slower economy," said Arthur Krause, chief financial officer of Sprint. "In addition, significantly higher energy costs in many parts of the country may have an impact on discretionary spending over the next several months. How this plays on the wireless industry is anybody's guess. But our sense is that these signs suggest a degree of caution is in order over the near term."

Sprint PCS, which ended the year with 9.85 million customers, said revenue in the fourth quarter increased 84% from the previous year, driven by its addition of 1.25 million customers.

The carrier's loss narrowed in the fourth quarter to $512 million, or 53 cents per share, compared with a loss of $706 million, or 75 cents a share, in the fourth quarter 1999. Revenue increased 84% to $1.94 billion from $1.06 billion.