Sprint Reports Profit Of $383 Million
Sprint Corporation (NYSE:S) has reported a third quarter profit under their first period of new ownership. Sprint reported a net profit of $383 million for the first quarter under the completion of the Softbank takeover and Clearwire acquisition compared to a year earlier loss of $767 million. Sprint did not report per share earnings or loss because the new combined SoftBank/Sprint stock was issued part way through the quarter. Sprint posted an operating loss of $398 million compared to $231 million a year ago. Sprint’s net operating revenue dropped 2% to $8.68 billion. SoftBank is infusing cash and expertise in Sprint for a majority stake in the company.
Sprint is having a hard time staying competitive against Verizon Wireless, AT&T, and T-Mobile. Sprint lost 313,000 customers for the quarter, which includes a net loss of 360,000 Sprint contract customers. They also posted losses on the Nextel side of the business after shutting down the network at the end of the last quarter. Sprint ended the quarter with 54.8 million customers. The good news is that the average revenue per year increased 4 cents from a year ago to $64.28. Sprint sold 1.4 million iPhones for the quarter, 40% of which were sold to customers new to Sprint. Sprint sold 5 million smartphones for the quarter total. Sprint also announced yesterday that they have added 45 new markets to their LTE network. Now they have 230 LTE markets total.