Sprint Reports $1.37 Billion In Quarterly Net Loss
Sprint has reported a $1.37 billion loss for Q2 2012. Sprint missed analyst expectations, but the company’s stock has risen over 18% today. Sprint reported a net loss of $847 million during the same period last year.
However Sprint has increased their earnings guidance to between $4.5 and $4.6 billion, which is up from their previous guidance of $3.7 billion to $3.9 billion.
A major portion of the loss was due to the rollout of the 4G LTE network, which recently launched in 15 cities. Sprint said that they have shut down 9,600 Nextel sites, which was using an obsolete push-to-talk network.
Sprint retained around 60% of Nextel’s customers on their network. Sprint has added 442,000 postpaid subscribers, but they lost 688,000 subscribers from Nextel.
Sprint has 56 million customers total as of the end of the quarter including contracted, prepaid, and affiliate subscribers. Sprint sold about 1.5 million iPhones this quarter.This article was written by Amit Chowdhry. You can follow me at @amitchowdhry or on Google+ at +AmitChowdhry