Cingular profit drops; Nextel reports Q2 drop

Cingular Wireless yesterday reported second-quarter profit fell as revenue and subscribers grew. The carrier posted earnings of $317 million (excluding merger related costs), compared with a loss of $152 million from the second quarter of 2004. Including merger costs, Cingular earned $147 million in the second quarter, a steep decline of 56.6 percent from $339 million last year. Revenue grew to $8.6 billion from $8.2 billion a year earlier while the carrier added 1.1 million new subscribers. Cingular is the largest US carrier with 51.6 million subscribers.

For more on Cingular's second quarter results:
- see this article from the Atlanta Journal-Constitution

Nextel Communications said its second-quarter net income fell 60 percent due to increased operating expenses and costs related to the carrier's pending merger with Sprint. The company, however, reported it is still on track to meet or exceed its 2005 guidance. Nextel's second-quarter net income fell to $524 million, down from $1.34 billion a year ago but still beating analysts' estimates. The carrier's revenue grew 16 percent to $3.8 billion. Nextel added 763,000 new subscribers, ending the quarter with 17.8 million, a 23 percent increase from the same period last year.

For more on Nextel's Q2:
- go to this article from InformationWeek

PLUS: A judge has denied Sprint affiliate iPCS' request for an injunction to stop Sprint's pending merger with Nextel Communications. Blog