Dec, 2001 : Legg Mason Releases 3Q Wireless Industry Scorecard
📅 - As the wireless industry continues to grow, service providers increasingly will be measured by their operating results, according to a new report by Legg Mason Wood Walker, Incorporated (leggmason.com).
The report, dubbed "The Wireless Industry Scorecard" by Legg Mason analystsSean P. Butson, CFA, Craig A. Mallitz, and Tahmin O. Clarke, is a quarterlypublication designed to help investors evaluate wireless carriers'performance by highlighting operating and financial metrics for the U.S.wireless industry. The 3Q 2001 Scorecard reflects the wireless industry'strials and tribulations and compares it to baseball's World Series. Thereport notes that, "not only must the teams exhibit the ability to showconsistent results throughout the season, but they also must spend theirmoney wisely to achieve a good return on their investment."
The detailed report covers 26 publicly traded wireless companies andcontains 44 metrics to evaluate growth. The metrics all fall into one offour categories - subscribers, revenue, cash flow and capital expenditures.
For comparison purposes, the wireless industry is segmented into threedistinct categories:
The "Big 6 Wireless Carriers" is comprised of Verizon Wireless,Cingular Wireless, AT&T Wireless, Sprint PCS, Nextel and VoiceStream. Thesecarriers account for over 76% of the market share in the industry."Affiliates and Other PCS Carriers" is a group of 11 regionalcarriers that also experienced significant subscriber growth in the thirdquarter."Independent Cellular Carriers" consists of 9 regional carrierswhose market share declined slightly in the third quarter, due to increasedcompetition and acquisition activity.
According to the Scorecard, the wireless industry continues to show solidoperational results in the face of a slowing economy. Legg Mason estimatesthat the wireless industry ended 3Q01 with 123.3 million subscribers, orapproximately 44% penetration of the U.S. population. Service revenues grew5.2% sequentially and 25% year-over-year in 3Q01 as carriers continue tobenefit from growing ARPU and subscriber bases. These strong fundamentalsresulted in approximately 65% of the carriers in the Scorecard reportingpositive EBITDA in the quarter, up from 63% in 2Q01.
The report, dubbed "The Wireless Industry Scorecard" by Legg Mason analystsSean P. Butson, CFA, Craig A. Mallitz, and Tahmin O. Clarke, is a quarterlypublication designed to help investors evaluate wireless carriers'performance by highlighting operating and financial metrics for the U.S.wireless industry. The 3Q 2001 Scorecard reflects the wireless industry'strials and tribulations and compares it to baseball's World Series. Thereport notes that, "not only must the teams exhibit the ability to showconsistent results throughout the season, but they also must spend theirmoney wisely to achieve a good return on their investment."
The detailed report covers 26 publicly traded wireless companies andcontains 44 metrics to evaluate growth. The metrics all fall into one offour categories - subscribers, revenue, cash flow and capital expenditures.
For comparison purposes, the wireless industry is segmented into threedistinct categories:
The "Big 6 Wireless Carriers" is comprised of Verizon Wireless,Cingular Wireless, AT&T Wireless, Sprint PCS, Nextel and VoiceStream. Thesecarriers account for over 76% of the market share in the industry."Affiliates and Other PCS Carriers" is a group of 11 regionalcarriers that also experienced significant subscriber growth in the thirdquarter."Independent Cellular Carriers" consists of 9 regional carrierswhose market share declined slightly in the third quarter, due to increasedcompetition and acquisition activity.
According to the Scorecard, the wireless industry continues to show solidoperational results in the face of a slowing economy. Legg Mason estimatesthat the wireless industry ended 3Q01 with 123.3 million subscribers, orapproximately 44% penetration of the U.S. population. Service revenues grew5.2% sequentially and 25% year-over-year in 3Q01 as carriers continue tobenefit from growing ARPU and subscriber bases. These strong fundamentalsresulted in approximately 65% of the carriers in the Scorecard reportingpositive EBITDA in the quarter, up from 63% in 2Q01.
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