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Sprint's first quarter generates operating income of $420 million; best quarter in over seven years

Posted: , by Alan F.

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Sprint's first quarter generates operating income of $420 million; best quarter in over seven years
The third largest mobile carrier in the U.S., Sprint, announced its first quarter results on Tuesday. During the three month period that ended in March, Sprint reported operating income of $420 million. That is the carrier's best quarter in over seven years. Adjusted EBITDA (a metric that includes earnings before depreciation, amortization and taxes) hit $1.84 billion, which represents a 22% gain from the 2013 quarter, and is the third consecutive quarter showing such growth at Sprint. The company still reported a net loss of $151 million in the period, an improvement of  77% over last year's numbers.

Leading the way for Sprint is its Framily plan, which now counts more than 3 million subscribers. With Framily, ten unrelated people can sign up for a plan that costs $55 a month for unlimited talk, text and 1GB of data. For each person that signs up to the plan, $5 is taken off the basic rate, with a maximum discount of $30. In other words, assuming the maximum discount, the best-case scenario has Sprint customers paying $25 a month for unlimited talk, text and that 1GB of data. Add an additional $20 per month, and you will have unlimited data, plus the opportunity to trade in your phone once a year.

Sprint has 54 million subscribers with the number of gross postpaid users rising 16% from last year. But overall, the carrier lost 231,000 postpaid customers during the three months due to higher churn numbers. This was expected by Sprint, as some of its customers were affected by network disruptions caused by Sprint's build out of its pipeline. The company also lost 364,000 pre-paid customers in the quarter, due to changes in the government's Lifeline program. Smartphones represented 84% of device sales in the quarter.

Sprint's LTE signal now reaches 225 million people and is expected to reach 250 million by the middle of the year. Also around that time period, Sprint will have completed the replacement of its 3G network and the rolling out of HD Voice to almost its entire footprint. The tri-band LTE service Sprint Spark is launching today in six more markets including Orlando, Florida and Oakland, California. 24 markets now offer Sprint Spark, which allows for faster data speeds (as fast as 60Mbps now and three times that figure by late next year) and better service indoors. Sprint hopes to deploy Sprint Spark in the top 100 markets, over the next three years.

source: Sprint

12 Comments
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posted on 29 Apr 2014, 08:46 1

1. DonkeySauce (Posts: 158; Member since: 03 Dec 2011)


First?

posted on 29 Apr 2014, 09:00 2

2. youlookfoolish (Posts: 122; Member since: 14 Dec 2012)


It's getting better for Sprint, but still seems slow. At least there is discernible progress. Good for them.

posted on 29 Apr 2014, 09:05 2

3. eggclip (Posts: 5; Member since: 20 Apr 2014)


blaze it

posted on 29 Apr 2014, 10:50 1

4. CEMIII (Posts: 110; Member since: 26 Jun 2013)


Sorry after 10 yrs there is no love lost. Just about everyone could make a phone call. However the data is still lack luster & still no WP support.
I took my Iphone, S4, LG optimus & Arrive off for bad data & to get a Nokia Icon. Surrprisingly my family has noticed better data coverage here in B'more, MD. So far so good.

But Hey they say those at the bottom make the biggest comeback so we'll see what the future holds. I may switch back in 5-7 yrs

posted on 29 Apr 2014, 11:38 1

5. joe1blue (Posts: 103; Member since: 25 Jul 2013)


After dealing with sprint for 8 years I had to move on to T-mobile

posted on 29 Apr 2014, 12:33

6. Lmao2013 (Posts: 19; Member since: 05 Dec 2013)


Same here!! But was with them for 3yrs

posted on 29 Apr 2014, 12:35

7. Doakie (Posts: 1233; Member since: 06 May 2009)


After 11 years we moved to AT&T. I was convinced Sprint was a sinking ship that was hemorrhaging customers. I guess not so much. They're still bleeding but not as bad as before. Good for them. Their network still sucks here in Seattle. Once I took our 4 lines to AT&T 2 of my friends and their wives went from Sprint to T-Mobile. So I personally know of 8 lines that left recently.

posted on 29 Apr 2014, 13:39

8. networkdood (Posts: 6267; Member since: 31 Mar 2010)


This FRAMILY plan seems to be a good deal...but everyone I know has other carriers...Sprint suck in the Central Valley in Cali...

posted on 29 Apr 2014, 15:45 1

9. profperez1 (Posts: 49; Member since: 08 May 2012)


Was very tired of Verizon bills---went to T-Mobile (Aug) just for political reasons. Cost me $250. Was happy I did it. Prices have come down due to this type of churn. From T-Mobile I jumped on Sprint (April)---they gave me a rate that was 45% less than T-Mobile! It just so happens my coverage is better. When the iPhone 6 comes out I will jump on some kind of plan with my wife--just about the best deal. Just on a personal mission to bring industry prices down--have been riped off for 2 decades! I'd like to stay with Sprint. I'm not a brain surgeon so if a text comes in at 2:44p instead of 2:42p it doesn't matter!

posted on 29 Apr 2014, 21:55

10. Bernoulli (Posts: 1443; Member since: 01 Sep 2012)


Some of the rates that they offer are cheaper than t-mobile, but for some of us that travel abroad twice a year t-mobile is the best carrier. Sprint roams in my school's library, whereas everyone else gets LTE, they do offer a better student discount and I'm eyeing them for sure, hopefully they'll accept gsm phones in the future.

posted on 30 Apr 2014, 14:51

12. Joshua9007 (Posts: 76; Member since: 08 Jun 2012)


Especially if Softbank buys one of the major European carriers, which is a real possibility with it looking like the FCC will not allow him to buy t - mobile... sprint might eventually offer not only roaming internationally, but might be able to do so economically. Once they have 800MHz LTE in all areas they serve, there shouldn't be a problem with service in your library. Also they are working with the CCA and will start introducing phones that can connect with any domestic carriers frequency, and allow for unlocking of such devices as long as they are paid for. I believe this will lead to manufacturers making only one model of a phone and consumers being able to easily move the phone to another network (sprint is probably hoping they will move to their network). As for gsm phones, sprint is still going to use CDMA for voice for the foreseeable future, so phones will have to be capable of that to be activated on their network.

posted on 30 Apr 2014, 00:02

11. agentoj (Posts: 101; Member since: 29 Oct 2009)


Sprint has been more than awful for
Me and has been extremely deceptive with their unlocking policy. I only want sprint operating to keep pricing competitive. Other than that I plan on them to trail.

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