Sprint posts $594 million first quarter loss

Sprint posts $594 million first quarter loss
The hurting still continues for Sprint Nextel, the nation's third largest wireless carrier, which posted a larger than expected first-quarter loss. Trying to combat the slowing economy, they responded back by cutting 8,000 jobs in January, trying to ease their losses. Even through that, the Overland Park, Kansas based company reported a loss of $594 million, or 21 cents per share, during Q1 that ended March 31. When compared with last years results, Sprint's loss tallied at $505 million, or 18 cents per share. Total revenue went down 12 percent to $8.21 billion when compared to the $9.3 billion for the previous year. Analysts were expecting revenue to hit around $8.28 billion; still far short from the actual posting. Sprint continues to lose postpaid customers at an alarming rate with a total loss at 1.25 million subscribers versus the 1.1 million loss during the fourth quarter. Postpaid customers are by far the most profitable for any wireless carrier with them having to commit to a two year contract.  Surprisingly, there was an increase in net subscribers for their prepaid division thanks to Sprint's low-cost Boost Mobile subsidiary. Back in February, they launched their $50 per month unlimited talk, text, and data service. The net gains in prepaid customers for its iDEN network came in at 764,000 customers while another 394,000 gained through its wholesale and affiliate subscribers. All in all, Sprint lost a net of 182,000 subscribers which was a lot better than the 1.3 million they lost during the fourth quarter. With the summer upon us, will Sprint survive another quarterly loss with the Pre looming in the horizon? Or will it be the turning point for the third largest wireless carrier?

source: Yahoo

FEATURED VIDEO

8 Comments

1. sinfulta

Posts: 279; Member since: Dec 11, 2008

Poor Sprint... They can't win. They really need to fix there image fast. The Pre is just a bandaid in the meantime for this quarter... then what happens when the hype wears off?

2. brikz4real

Posts: 173; Member since: Dec 24, 2008

It's really sad to see.... Sprint is a slow-sinking ship. Even with their cheap Unlimited plans, the upcoming Pre, and WiMax technology, they can't seem to keep anybody around. But I won't be too hasty with my comment. Maybe the Pre is the start of something good. We will see by the third quarter report.

3. Keepin_Real

Posts: 23; Member since: Apr 22, 2009

Poor Sprint is right. I feel sorry for them.

4. shayshaybhai

Posts: 14; Member since: Jan 31, 2009

hopefully this is a sign that the ship is turning around...

5. phone333

Posts: 331; Member since: Feb 04, 2009

-They're still loosing quite a bit, but still on the rise though. It hasn't gotten worst

6. chupum

Posts: 115; Member since: Feb 10, 2009

I would feel bad for Sprint, except that Sprint and I had a falling out a few years ago. It got pretty ugly... First it was poor customer service. Then it became poor customer service with poor billing records on their part. And then before long, I just couldn't take the abuse and so I left... It was tough at first, but nothing a few cold showers couldn't take care of, "I'M ALL OUT OF LOVE, I'M SO LOST WITHOUT YOU, I KNOW YOU WERE RIGHT, BELIEVING FOR SO LONG. I'M ALL OUT OF LOVE, WHAT AM I WITHOUT YOU, I CAN'T BE TOO LATE, TO SAY THAT I WAS WRONG." Anyway, I won't lie about it, I REALLY like the initial look of the Palm Pre. But doing some Googlenews searches, I've read that they're having some real hardware/software problems that's effecting how many Palm Pre's they want to put out. If you want to check it out, here's the website that I read it from. I just wish Verizon would give SOME news about its upcoming smartphones... I haven't heard a peep! http://www.crunchgear.com/2009/05/01/analyst-palm-pre-she-is-dying/ Enjoy...

7. tflex

Posts: 146; Member since: Oct 24, 2008

dude its a phone company....u make it sound like its ur wife.

8. TestManVZW

Posts: 25; Member since: Apr 14, 2009

In recent news, I found $594 million yesterday on my way to work.... It must belong to somebody??

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.
FCC OKs Cingular's purchase of AT&T Wireless