Sprint posts $1.6 billion Q4 loss
The holiday rush has been over for quite some time and usually provides companies some much needed revenue. In Sprint’s case though, they reported a $1.6 billion loss for the fourth quarter ending December 31. Revenue fell 14 percent to $8.4 billion from $9.8 billion when analysts expected $8.55 billion. The loss is mainly due to writing off $1 billion in goodwill for the remaining value of the 2005 Nextel Communications purchase. If the write off was not taken into consideration, the company said it would have lost a penny per share. It’s by far better than the 3-cent-a-share loss expected, on average, by analysts surveyed by Thomson Reuters. Additionally, they continued to lose subscribers to other carriers and reported total subscriptions at 49.3 million; down 8.4 percent from 2007. Another key aspect to look at was Sprint’s churn, the measure of subscriber turnover, which was 2.16 percent during the quarter and down 2.29 percent from last year. But through it all, shares climbed to a higher opening in morning trading due to better than expected predictions from Wall Street. Investors and everyone in the industry will be eyeing the number three wireless carrier this summer to see how the Palm Pre will turn out.
1. oversteer325 (Posts: 1; Member since: 19 Feb 2009)
Not bad considering a year ago that loss was $29 billion. Getting close to turning the corner.
2. killingthemonk (Posts: 52; Member since: 19 Feb 2009)
Maybe they only had 1.6b to lose this quarter.
3. insider80 (Posts: 93; Member since: 26 Jan 2009)
i agree sprint is deff gonna be turning the corner this year and i think with the clear merger, 4g release and flagship phones they will atleast be taking that number 2 spot back.
4. geewhiz (Posts: 1; Member since: 21 Feb 2009)
uh...when was Sprint EVER the number 2 carrier? that spot has flip-flopped between PacBell/Cingular/AT&T and Verizon for ages now. To get to the number 2 spot for the first time ever, they would need to add over 20 million subscribers...that would take 3-4 VERY good years (unless they use what's left of their cash and buy someone?)
5. insider80 (Posts: 93; Member since: 26 Jan 2009)
sorry we werent talking number of subscribers
6. WKlingbeil (Posts: 215; Member since: 26 Dec 2008)
Sprint would do well to return to profitability just to be bought out. Their plans are too cheap to ever turn out a great profit, and much like Alltel, they lose more money than they bring in, which is clearly a big problem. Alltel had to sell because of this, and if an international carrier would be interested in purchasing a legal percentage stake, Sprint would probably accept. I would say they would be bought by a U.S. carrier, but T-Mobile couldn't feasibly do it (merging CDMA w/ GSM would be a nightmare, unless it would be under LTE), AT&T is too big, and has the same T-Mobile issue, and VZW couldn't possibly want Sprint, nor would they legally be allowed to buy them out. I personally cheer for Sprint though, and hope for their well-being, and also hope they return their call centers to the U.S., and operate 100%, much as the majority of the cellular carriers. Hopefully Sprint will get it together though.
7. DonLouie (Posts: 594; Member since: 22 Dec 2008)
If Sprint's plans are too cheap, look at what T mo is doing it's even cheaper than Sprint's. I don't think that cost effective argument holds weight
Sprint posts $1.6 billion Q4 loss