Sprint Q2 revenue reaches record heights, but Nextel shutdown brings $1.6 billion loss

Sprint Q2 revenue reaches record heights, but Nextel shutdown brings $1.6 billion loss
Sprint is the nation’s third largest carrier and it scored one of its best quarters ever hitting record revenue of $7.2 billion in the second quarter of 2013.

Still, Sprint registered a huge $1.6 billion loss due to the Nextel shutdown which is now finally complete. The carrier took a massive $430 million depreciation charge and $623 million in Nextel closure charges. On a positive note, Sprint did mention that it ‘recaptured’ 4 million Nextel subscribers.

In terms of sales, an overwhelming majority of devices sold to post-paid customers were smartphones and the iPhone was once again the best selling of all Sprint smartphones with 1.4 million units sold in Q2. Here is a quick rundown of Sprint smartphone sales:

  • 86% of post-paid sales were smartphones
  • 1.4 million iPhones sold
  • 41% of iPhone sales to new customers

The carrier has received a cash injection from the $20.5 billion SoftBank acquisition and CEO Dan Hesse could not be more excited:

“This is a historic time for Sprint. We recently shut down the Nextel platform and completed the Clearwire, SoftBank and U.S. Cellular transactions. In the second quarter, we achieved record levels in Sprint platform postpaid subscribers, service revenue and postpaid ARPU, and increased our 4G LTE footprint,” Hesse said.

Sprint now also covers 151 markets with 4G LTE. Today, it has just flipped the switch in 41 new ones including Philadelphia, the Bronx , Brooklyn, Jacksonville, Nashville and Oakland. Hugely important markets, and it expects to provide 200 million people with LTE by the end of 2013.

source: Sprint

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5 Comments

1. romeoc1984

Posts: 25; Member since: Sep 12, 2012

I worked at Sprint for 7 years and one thing they are definitely good at is surviving a tough market!

3. jharkem17

Posts: 21; Member since: Jul 29, 2013

sprint FTW..

2. sun0066

Posts: 251; Member since: Feb 12, 2011

Now to improve the so slow network that render it almost useless

4. lsutigers

Posts: 832; Member since: Mar 08, 2009

Sprint is on the upswing. The Nextel Network HAD to be decommissioned to put Sprint in a much better competitive position.

5. Landmarkcm

Posts: 507; Member since: Aug 11, 2009

Well I couldn't resist commenting on this & I have to be the negative one. I recently gave Sprint another try as there coverage map & keep in mind im in a major city said I was now in the "best" coverage. Get home dropped calls the usual SLOW Sprint 3g data. The Htc 8x was nice but pretty unusable on Sprint. My Sister etc I got on family plan in CA are ready to dump them too. Grant it all of the carriers are not the best inside where I live. But the other ones at least hold a signal. I actually couldn't be happier right now on metroPCS in one of there new areas using Tmobiles blazing fast Lte. (I never really would have considered them before) Its sometimes faster then my wifi. Anyway I am surprised actually that Sprint is turning a profit & wonder how much more time before Tmobile overtakes them as the 3rd largest. Sorry but I know people will comment that Sprint is working on it & will get better but they are just to slow! in deploying there lte & even when it's all up & running Tmobiles will still be better. Even there wimax was kind of a joke.

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