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Sprint reports dismal 1Q earnings

Posted: , by Brian K.

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Sprint reports dismal 1Q earnings
Sprint reported its first quarter earnings today and, as expected, news was not good. On the whole the carrier lost 1.09m customers, mostly from the postpaid sector. The carrier reported a $253m loss in operating income and $8.0b in revenue. The revenue was down 9% from 1Q07 and 6% from last quarter, and can be attributed to the loss of subscribers, as well as a 6% decline in ARPU to $56. Churn is at 2.45%, up from 2.3% last quarter.

These numbers don't come as a big surprise, last quarter the company lost 700,000 customers, as CEO Dan Hesse made it clear that it would take several quarters to see the results of new policies. Though they don't report separate iDEN and CDMA numbers, it has long been thought that the company is bleeding iDEN customers while still netting CDMA growth, and most industry insiders agree the sale of Nextel would help the company significantly. There have been many customer-focused changes since Hesse took over, as well as a strong, unified marketing campaign. Sprint's ARPU is significantly higher than rivals AT&T and Verizon, both of which are around $51, and with the upcoming launch of the Instinct and rumored coming of the Touch Diamond and Raphael, as well as recent partnerships with Google and the official announcement of their 4G WiMax plans Sprint does appear to be turning the ship around. But the $64,000 question remains, is this all too late?

source: Sprint

29 Comments
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posted on 20 Oct 2010, 01:42

1. (unregistered)


Sprint has a serious problem: Customer Service. It is terrible to always find unauthorized charges on your monthly statement. They call you to offer you additional services, and even though you deny the trials, the still staple the trials of services your account. When your next bill comes, you are being charges for those services trials you said "No!" to. You can to complaint and have the charges removed, they say well.... you used part of them. My issue was escaleted to a supervisor who said I used the service and only removed 50% of the charge. The charges were for internet connectivity, I never use the internet on my sprint phone, yet they were strong saying I did.... Sprint has another serious downfall: Their sales people stink. I have visited four Sprint stores in the area.... The sales rep don't know how to sell,they are not eager to sell. One rep even advised me "Don't get the Touch, that phone is too weird". Another rep told me the Mogul stinks. Basically, they wanted me to leave or something. AT&T's sales rep had a little more desire to sell and assist you.

posted on 28 May 2008, 02:07

28. (unregistered)


well i agree 100 percent. the overcharging on many of my bills have been ridiculous. though i got them taken care off the hassle was annoying. SPRINT TAKES 2 LONG 2 GET NEW PHONES. verizion t mobile and att all kick out new phones every month it seems. plus other companies offer better "gimmicks" i call them. rollover minutes, fave five, etc are more appealing. ive been with sprint nextel 4 over ten years. I'm thinking about switching 2 t mobile cause i need a quadband phone (which when i asked a sprint rep new nothing about) and my son wants a sidekick anyway.......sprint should sell to Deutsch telekom AG immediately

posted on 12 May 2008, 12:43

2. jrcrow (unregistered)


I actually never had an issue with Sprint after a week on trial basis..just switched to ATT for the rollover minutes factor..though Sprint to Sprint calling was a bit choppy..ATT has really improved their cs...and then again Verizon still sticks to their contract guns n bullets.

posted on 12 May 2008, 18:42

13. (unregistered)


Rollover is only helpful to people that really barely use there phone. I dont think its a horrible idea but in the end you either have to be a very light user or pay too much month to month then lower you plan to take advantage of those rollover minutes. And at least a few years ago when i looked at ATT(cingular at the time i believe) it extended you contract if you changed your plan which isnt a huge deal I guess but lame none the less.

posted on 12 May 2008, 19:01

16. (unregistered)


so, I'm a titch confused as to what you mean by "their contract guns n bullets". Verizon has had their "no contract price plan changes" and such in affect since ... october 2006. And the only times they offer a discounted phone (early upgrade [which in itself is something that was unique to VZW for a very long time], etc) is by doing a new contract--just like any other carrier "you want a discounted phone? then agree to stay with us longer."

posted on 12 May 2008, 13:02

3. VZWREP (unregistered)


wow thats crazy lose. but as a sales rep for verizon ill advise a consumer on what phones operate well and which ones dont. ill always tell people my honest opinion about a phone. maybe thats all the sprint rep was trying to do? i dont know...

posted on 12 May 2008, 14:29

4. (unregistered)


i have no loyalty to any particular co..been w/sprint 4eva & they screwed up royally a few months ago...1st & only times...so i take it this way...noone is perfect all the time..end of story. aint no different than any other co, just a bunch of folks that dont think for themselves & always look for the worst in every situation..sprint will b fine

posted on 12 May 2008, 14:40

5. rob21i (unregistered)


Sprint is beyond help. I feel for all the employees who will be affected by the downsizing and all the stores closing. :(

posted on 12 May 2008, 15:40

6. (unregistered)


they still have 52 million customers, its not like they lost half their subscriber base or something. yes, times are rough, but it was always known that this was going to be their worst quarter. hesse has made some great changes, and new customers are pretty happy b/c theyve seen these changes. as always, itll take a while for them to change their reputation but as the article says theyre moving in the right direction. now they just need to dump nextel, which is why theyre having all these problems in the first place...

posted on 12 May 2008, 15:45

7. (unregistered)


Sprint just needs to cell the company to someone who can actually run it. Even Alltel is doing better than they are...and Alltel is #5

posted on 12 May 2008, 18:59

15. (unregistered)


no doubt about that! and oddly enough, Alltel now touts the better service between them and Verizon--atleast in the few areas where they co-exist! Just a little food for thought, i guess.

posted on 12 May 2008, 16:30

8. sprintrep091 (unregistered)


its also very annoying having idiots call in asking for money on there bill, charges not valid my a**, you know you know where thiose charges came from and you know they told you about them charges too, quit acting stupid, and just pay your bills!!!!!!!!!!!!!!!!!!!!

posted on 12 May 2008, 17:49

10. VZWREP (unregistered)


wow...im surprised you dont have customers beating your doors down trying to sign up with sprit with that great attitude you have! youre telling customers to pay their bills?!?! Sprint owes us (verizon) money! hahahaha wow youre funny

posted on 12 May 2008, 18:44

14. (unregistered)


Honestly i work for a verizon premium retailer and some of the charges on the bills do seem to be made up. Im sure there is a reason but out of all the customers i port in, sprint bills are the most confusing.

posted on 12 May 2008, 17:23

9. (unregistered)


How retarted is it that a Sprint rep would come on to this thread and post a comment like the one from sprintrep091, I wander what Mr. Hesse (Sprints new CEO), would say if he read that and if you would be man or woman enough to admit to him that you posted it. It's reps like you - inconsiderate, uncompassionate and without empathy who have no concept for what customer service truly is. You and other reps like you is one of the main reasons Sprint is in the trouble it's in. Sprint has a reputation for bad cust. sevice and confusing bills and they know it hence the reason they are trying to affect change in those areas. I've been a Sprint customer for over 5yrs, I pay my bill on time I'm contributing to those ARPU numbers as my plan is over $100 per month and I've experienced bad service and billing errors from Sprint (like activation fees strangely appearing on 3 seperate occassions and I hadn't activated any new service or made any plan changes or contract renewals on my account), should I just shut up and pay my bill, I dont think so. I think you should quit acting stupid and get with the program or find a career more suitable to that little outburst, cause it's obvious you shouldn't be working in Customer Service seeing how Customer Service Reps are paid to handle Customer Service Issues.

posted on 12 May 2008, 18:17

11. (unregistered)


wow, that was pretty low man,i to am a sprint rep, but still want to give good customer service, you're the reason our company's gonna go down the drain

posted on 12 May 2008, 18:26

12. sprintrep091 (unregistered)


thanks guys, just got fired

posted on 12 May 2008, 19:58

17. DP (unregistered)


Yea, whatever sprintrep091. Either way, it is not too late. Before you can say "horrendous customer service", everything will be fine. Sprint's stock will be back in the late teens, early twenties-- it's all good.

posted on 12 May 2008, 20:46

18. (unregistered)


I am the Original Poster: That person who supposedly is a Sprint Rep just proves the point, even if he or she does or does not work for Sprint. That is what the Supervisor told me... Just pay 50% of the charges... and keep paying your bill on time... because we can turn off your phone... Hmmm.... Poor service again is what is ruining Sprint ... ... ... The only good thing Sprint has is the SERO plan...

posted on 12 May 2008, 20:49

19. (unregistered)


*******Sprint reported its first quarter earnings today and, as expected, news was not good. On the whole the carrier lost 1.09m customers, mostly from the postpaid sector. The carrier reported a $253m loss in operating income and $8.0b in revenue. The revenue was down 9% from 1Q07 and 6% from last quarter, and can be attributed to the loss of subscribers, as well as a 6% decline in ARPU to $56. Churn is at 2.45%, up from 2.3% last quarter.******* Ya know, I could go on and on about how Sprint has been a slow sinking ship and someone on any given forum would burn me for it. I could talk about how much the company is losing and how they don't compare to the other Cell companies and someone would blast me for it. I could talk numbers with everybody as living proof that Sprint is NOT the way to go and someone would tell me " ... you don't know what you're talking about. Get your facts straight...." Well, there it is .... in black and white ... in all it's glory. Sprint is simply M.I.A. in the cell phone industry and to prove it, I can .....oops, that's right, it's right there in the subject of this thread. My bad :-)

posted on 13 May 2008, 10:25

22. (unregistered)


according to this article (http://www.bloomberg.com/apps/news?pid=20601087&sid=aTTIjQ8qgKEU) they lost 1.6 million nextel subscribers in q1, meaning they had a net add of 500k cdma subscribers. the nextel merger was the stupidest in recent memory, and is obviously the companys downfall right now. even with the dismal numbers, the stock has risen 50% in the past month (not that it was high to begin with, but growth is growth) and the company is far from dead. sprint has a lot going for it, and it seems hesse knows what to do with that. it wont be an overnight turnaround, but at this time next year i bet we see growth and hopefully no iden

posted on 12 May 2008, 23:58

20. (unregistered)


Here's a link for youhttp://www.reuters.com/article/hotStocksNews/idUSWNAS346520080512?rpc=77 a 3 page article on the current state of the company. I have to say it does not look good.

posted on 13 May 2008, 08:25

21. CSol (unregistered)


Sprint has just recently authorized corporate reps to give billing credit and thats power that store reps never had before. That right there is a big help, especially from the reps prospective. Errors happen with any billing system, with all providers, no system is perfect. Also you will be glad to know that customer service is no longer being rated on "length of call" which is the primary reason people would be transfered 30 times, but instead on resolution. Also, you will see (off the record) data family plans in the near future, something people have been asking about. The new CEO is trying and hes got the right idea, but it takes time to break stereotypes as you can tell from all the comments above. I wouldn't be shocking for a nextel spin off a SprinT-mobile company forming, but would that hinder plans for WiMax and more towards LTE? Nevertheless, sprint isnt good now, but they arent going to die, the will either be snagged up or be a mid range national carrier

posted on 13 May 2008, 11:58

23. realism121 (unregistered)


I don't mean to sound stupid. But I just don't understand something. If Sprint is doing so terribly, I don't see why Verizon doesn't buy them. Hostile takeover or whatever. Aren't they both CDMA? It sounds like a no-brainer to me. Or am I wrong about them both being CDMA? And what about Alltel? They're doing really well from what I read online. Don't get me wrong...I have a hatred for Sprint. I cannot stand them. But I'm stuck with them because of how many mob2mob mins I use. I also must admit that i really do love the Vision. I just am always reading how awful they are doing not just financially, but across the board. It just seems to make sense that another CDMA carrier would want to buy them and kick the CRAP out of AT&T. ...and to all the regulars on here...please don't beat me up too bad if i have errors in my assumptive information in here lol :)

posted on 13 May 2008, 19:06

24. (unregistered)


To realism121, I understand the point that you are trying to make, the problem is that while they're are doing so poorly they are still huge, and the money and politics involved with a buyout like that would be on a grand scale, remember It cost Sprint $35 billion to buy Nextel and from a subscirber base Nextel was not even close to the big 3 (Verizon, AT&T and Sprint), by the way your right Verizon is CDMA as well. There are talks or I should say whispers of a possible purchase/merger by Deutsche Telekom who have very deep pockets not to mention the resources to make it happen. The thing about talks of this nature is that there is always the possibility of it happening. About a year before the Sprint/Nextel merger, Sprint swore up and down that they are not even considering a merger with Nextel however it happened, the thing this time is I dont see any public denouncing of such a takeover by Duetsche Telekom, kinda makes you wander. No one but the big wigs sitting in the corporate office truly knows what Sprint is going to do, bu I do know this isn't the first time that Sprint stock/credit has had a junk status rating, back in early 2002 (I wanna say), there stock dipped as low as $3-$5 a share and they managed to bounce back then, there is nothing to say they can't do it again. I think right now in addition to all the press they get from the average joe about how bad there service is, is that they have had an identity crisis ever since the Nextel merger. They don't know who they are, how they want to sell there network (having CDMA and IDEN networks), if they want to commit to producing phones that automatically work on both or keep them seperate. It's like 2 seperate companies trying to operate individually of each other but inside of one another (see that even sounds confusing). I think they need to put a great deal of emphasis on improving customer service It's not like Spint used to have good service and it got bad, they have always ranked bad with regard to customer service which would seem to directly correlate with the training and expectations set with the reps on the front line or lack there of, I know its easier said then done but like I always say "It's always easier said then done when ONLY said". Then they probably need to work on over simplfying there plan offerings, have you ever looked at a Sprint rate plan sheet, sheesh. I know I'm oversimplifying things but like they say "words can inspire a man but Doing can inspire a man to action" or do they say that?? hmmm...

posted on 14 May 2008, 21:57

27. (unregistered)


.... and to build more on what you're saying, I really don't think VZW will buy Sprint out since they are going to an "Open" network anyway.... which will allow Sprint subscribers to move their handsets over to Verizon.

posted on 13 May 2008, 20:36

25. (unregistered)


Sprint is doing much better now that the new CEO, Dan Hess, has taken over. I had them before and their cust svc was horrible. However, since I've gone back to them last Dec, their cust svc has improved. (at least for me, it has). They just changed their billing and it has greatly improved. Easier to read with no confusion. Sprint will be back. Dan Hess just took over in Nov 2007. It will take time. Those people that left in the 1st quarter were going to leave anyways. Their mind was made up before the arrival of the new CEO. Dan's main focus is cust svc. He's already made significant improvements. One of the best things he did was to offer his "Simply Everything" plan for $99. No other carrier offers everything unlimited for $99. They only offer voice or voice and text. By the end of the year, Sprint will have shown some nice growth.

posted on 13 May 2008, 22:18

26. Dan Hesse (unregistered)


We are going down like Christy Canyons did on Peter North.

posted on 09 Oct 2008, 23:14

29. ExRepforSprint (unregistered)


I think Sprint is improving. As a rep.. I used to have a Stick up for the contract Guns and Bullets attitude back in 2005-but in 2006, the main management told us to lay off the details of the contract. I could use 'my own ' judgement on if a complaint was fair, and give money back or.. If they were asking for too much, still stick to their contract.. And also( I never extended a contract when there was a rate plan change..) even when it was required... 'casue I though it was stupid.... and sometimes..the person changing the contracts- did not even own the account.. Wait until the contract holder calls to cancel 2-3 libes and realises his buddy on the account had their plan changed.. and has to pay the 200$... That customer will pay the 200$ per line... But tell 25 people he was raped and screwed.... I also saw the cs experience get real bad in 2007, Sprint got rid of TEXH-support, Blackberry, and POWERSOURCE care, and made a whole lot of new-bies learn that area in ONE WEEK..... we were so confused... and it costed them many subscribers.... And not to mention the TRANSFER ISSUES.. I sit in a meeting knowing that all the new people do not know how to transfer someone's call. SPRINT's fault or REP's fault???..--> It's SPRINTS FAUNT.. becasue they have 90+ departments... and half of all transfers done by new-bies are wrong becasue it is all too confusing... But... if the system can be setup better... SPRINT will rise again.. Also , remember the economy.... People dont have the jobs they once had, so they are trying to spend less... make a SIMPLY MINIMUM PLAN maybe thats like 25$.... M2m/ UNL DC, and 400 mINS with ROLLOVER-LIKE BEHAVIOUR,, and you will keep half the folk leaving the company.... Thanks for listening... and I-m Out.. P.S. I did love the job a lot.... and love SPRINT still... CS is easy f you've done it for 5 years./. I was there way back in the NEXTEL days and watched the merger with weak knees, and If you put your mind to it, you can do anything...LATER..

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