Tags: Sprint | Wider | Loss | Subscriber | Losses | Narrow

Sprint Posts Wider Loss but Subscriber Losses Narrow

Wednesday, 27 Oct 2010 09:25 AM

Sprint Nextel posted improving customer numbers on sales of its EVO smartphone from HTC Corp., but its shares fell 3.4 percent as some investors had hoped for better.

The No. 4 U.S. mobile operator posted a net loss of 107,000 valuable postpaid contract customers compared with the average expectation for a loss of 173,500 customers from six analysts contacted by Reuters and losses of 801,000 customers a year earlier.

Pacific Crest analyst Steve Clement said that while the numbers were an improvement for Sprint, some investors had hoped that it would add postpaid subscribers.

"There may have been some disappointment relative to expectations that had risen late in the quarter" Clement said.

Sprint shares had rallied 20 percent since late August in expectation of improved results.

The numbers also looked weak in comparison to Sprint's biggest rivals, which reported their results last week.

Verizon Wireless added 584,000 postpaid customers in the quarter and AT&T Inc., the No 2 U.S. mobile service and exclusive U.S. provider for Apple Inc iPhone, added 745,000 subscribers.

Sprint, which has been losing postpaid customers for years, expects postpaid, prepaid and total subscriber numbers to improve in the fourth quarter compared with the third quarter but it did not give a specific target.

One bright spot for the company was a slight revenue increase to $8.15 billion from $8.04 billion a year earlier and compared with the average analyst expectation for $8.04 billion, according to Thomson Reuters I/B/E/S.

It was the company's first revenue increase that wasn't caused by an acquisition since 2007.

Hudson Square analyst Todd Rethemeier said that the increase was likely related to phone sales rather than service revenue, Sprint's core business.

Sprint's net loss widened to $911 million, or 30 cents per share, from $478 million, or 17 cents per share in the same quarter a year ago. The latest quarter included a massive tax-related charge.

The latest quarterly loss was 2 cents wider than consensus estimates of 28 cents per share, according to Thomson Reuters I/B/E/S.

Sprint shares were down 3.4 percent, at $4.61 in heavy premarket trading.

© 2017 Thomson/Reuters. All rights reserved.

 
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Sprint Nextel posted improving customer numbers on sales of its EVO smartphone from HTC Corp., but its shares fell 3.4 percent as some investors had hoped for better. The No. 4 U.S. mobile operator posted a net loss of 107,000 valuable postpaid contract customers compared...
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2010-25-27
Wednesday, 27 Oct 2010 09:25 AM
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