Sprint reports minor profits and not-so-minor loss of customers for Q2 2014, not out of the woods just yet

Just as we told you several days ago, Sprint just released its financial report for Q2 2014. The third largest US carrier reported that it has brought home a net income of $23 million (or $0.01 per each share), which seems to be “the best performance in almost seven years”. Also, the carrier reported that it scored consolidated operating income of some $519 million throughout the trimester, which is its highest result for the last seven years as well. As a comparison, just a year ago Sprint reported catastrophic losses of $1.6 billion.

Sprint's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose to$1.83 billion during Q2, which is a whopping 30% upward spike compared to the same period year-over-year. The EBTIDA margin of almost 24% is also a record-breaking one, as Sprint has not seen better results during the last 6 years. The company claims that the main reason for this increase are the reduced expenses in certain departments.

Sprint's report caused the company's stocks to increase by 1.9%. However, said shares had lost 16% of their value during the past two months and 26% year-over-year.

Sprint revealed that it has successfully expanded the coverage of its LTE and HD Voice services and now cover more than 254 million people. Unfortunately, this expansion did not lead to a subsequent increase of its user base - on the contrary, the carrier reports that it lost 220,000 of its customers in Q2. Compared with the client losses during the previous two quarters (383,000 and 520,000, respectively), the Q2 one is not that bitter. 

Sprint's heavily-rumored acquisition of T-Mobile, which might be the result of a possible deal between SoftBank and Deutsche Telekom, might be one of the ways to stop the bleeding of customers. Sprint is allegedly backed up by several banks, which will finance the merger. It's speculated that the acquisition sum will vary between $30 and $40 billion

source: Sprint, MarketWatch



1. mturby unregistered

sorry about the employees. but i hope u fu****g fall in bankruptcy sprint.

7. TheRequiem

Posts: 245; Member since: Mar 23, 2012

To hope a company fails and competition is yet more reduced and ruined is a terrible thought, you must shop at wal mart too... The idea of hoping a major carrier to fail is economically terrible and drives prices up, are there really people like who exist on this planet? Sadly so. The Sprint bashing is getting old people... I have noticed dramatic improvements in their network and the technology they are using for Sprint Spark and the 8-channel radios they are using will give them the fastest network in the country. I'm going to be laughing when everyone eats their own words when they start bringing in speeds well over 100 Mbps consistently and when no other carrier can match.

8. naittosan

Posts: 239; Member since: Jun 28, 2014

Yah they suck

9. Gdrye

Posts: 111; Member since: Jan 02, 2012

id say give it time, i used to work for sprint, and when project vision was introduced i knew right then that there will be growing pains, i warned spring customers of this 3 years ago when no one really knew what it was. but keep in mind that only sprint has the spectrum to become very dangerous, even more so than T'mobile who is fighting a price war, not a network war, which sprint assert themselves in, thats why both companys together would be killer and competition will be much greater...low end spectrum is needed tho as both companies doesnt have much and what sprint got from nextel isnt much of it at all

13. JEverettnow

Posts: 228; Member since: Mar 11, 2013

I have a speedtest screen shot in Elk Grove Ca(a sacramento suburb of 200,000 people) and the download speed was 76mbps. Not on Spark.

14. JEverettnow

Posts: 228; Member since: Mar 11, 2013

15. 10mmm

Posts: 4; Member since: Jul 30, 2014

In case you aren't aware of it, Verizon is getting 100+ Mbps download speeds right now on a single 20 MHz carrier of AWS (LTE B4) in NYC and other Metro areas. Sprint Spark is not what they are making it out to be and the lack of good, contiguous nationwide spectrum will prevent many customers from ever going over to Sprint. T-Mobile's native coverage area is not very impressive either.

16. JEverettnow

Posts: 228; Member since: Mar 11, 2013

I have been seeing 2-10mbps down on veriozon throughout Northern California. On sprint lte i seem to bounce between 12-30mbps down. And the above screenshot you can see 76 and it wasn't on spark. It was on a note 3 that isnt spark capable. The next day 80mbps was acheived. Where I work it will consistently give me 20+mbps. With verizon if you are lucky enough to be in a fast data market, you will burn through your data limit very quickly. I would rather get 20mbps down with unlimited data than 100mbps down with only 1-4gigs to use. For now I will suffer with this 80mbps and unlimited data ;)

18. 10mmm

Posts: 4; Member since: Jul 30, 2014

JEverettnow: I checked out your screenshot on photobucket and it is indeed on Spark. When you see the little icon that looks like a "Spark" or a Snowflake that indicates you are connected to it. I haven't really checked what spectrum Sprint has but they would have to be running 15 or 20 MHz to achieve those speeds you said you got. Verizon's max theoretical download on 10 MHz of 700 is around 74 but that would have to be on a tower with pretty much no users. Sprint 4G speeds are not bad, but the reason I would never consider them is because their native coverage is too small here in my state. From what I have been told by people that have it here, is you basically have to go out and find 3G/4G in the rural areas. Their signal does not propagate well (1900 and 2500 MHz)and they don't have enough towers like Verizon and AT&T for pretty much complete wireless data coverage.

20. 10mmm

Posts: 4; Member since: Jul 30, 2014

As far as unlimited data, that only applies to usage on your smartphone and excludes wifi tethering. Tablets and Mobile Hotspots all require tiered data plans. Personally, I will sacrifice unlimited data for a network that has coverage pretty much everywhere. One more thing to consider, and that is when Verizon starts shutting down it's CDMA network along with Sprint's roaming, those customers are going to lose a lot of coverage.

31. JEverettnow

Posts: 228; Member since: Mar 11, 2013

I wouldn't plan on Verizon shutting down CDMA anytime within the next 7 years. In that time you will probably see sprint on GSM as well as a completely different landscape in the cellular market.

32. 10mmm

Posts: 4; Member since: Jul 30, 2014

I haven't checked to see if a new reciprocal agreement was made but July 1, 2016 is when the roaming agreement with Verizon(Alltel)will end. I don't see Sprint building enough new sites or collocating on others to fill in the coverage they will lose by that time and the former Alltel areas Verizon would have been forced to divest that could have helped Sprint have already nabbed up by AT&T. Propagation of LTE on 1900 isn't that great but when they start using 800 that will be a big improvement. In all honesty, I am not going to knock Sprint because they seem to be serious about rebuilding their network and it works well for people.

29. JEverettnow

Posts: 228; Member since: Mar 11, 2013

I'm telling you that isn't spark. And I'm sorry, that screen shot was on the s5. It was right when I switched devices. The reason why I know it isn't spark is because I work for sprint. Not in sales or customer service either. This was done on regular LTE. There is not one 2.5g or 800mhz LTE tower in sac county. This was off of a 1900mhz LTE tower.

12. gregoryyy3 unregistered

I agree! I hate them

2. webOSlove unregistered

Sad to see that Sprint's improvement is that they're losing less customers. They talk of all these « improvements » to their network but even in large cities I have yet to notice a difference. Still poor coverage with agonisingly slow data speed.

3. joe1blue

Posts: 169; Member since: Jul 25, 2013

That is crazy considering they now have less people on their network you would expect them to have less congestion lol.

5. MartyK

Posts: 1043; Member since: Apr 11, 2012

Omg!, you're so right!, even here in its home town Sprint is terrible!.. I went to a Sprint store to test their spark vs T-Mobile, their DL was 10 vs 21 DL from T-Mobile!.. Try it if you don't believe me!.. They suck!

19. Slammer

Posts: 1515; Member since: Jun 03, 2010

Actually, due to my contract being up, I did a test drive a month and a half ago. While I found Tmobile on par with the other three carriers, it became a game of hide and seek for signal 11miles outside the city. Since most of my time as a road technician is outside the city limits, I found this unsatifactory. Even with all the hype surrounding TmobIle's "awesome" network, I found myself reverting back to my Sprint phone more than I would have thought. At times I found myself rooting for Tmobile in the city. Outside of these limits jarred the reality that Tmobile has a long way to go. What good is speed if one cannot pick up a radio signal to deliver the goods. People can try to act like parrots on this site by recycling other's hyperbole of Sprint's network, but I find the network more solid than ever. I seriously have doubts on what people are claiming under Sprint's soon to be completed markets. I could easily claim something to draw attention away from a product or service, but the truth will always prevail. Sprint is on a return. I'm very confident that Sprint doesn't wake up in the morning asking what it can do to piss people off. It has been very forward in informing its customers that tearing down an old network to replace it with a new one, would be painstaking. While I realize these sites are used for marketing tactics by representatives of their respective carriers to sell their product,, I wish for people to be a little more mature and accurate when it comes to providing an opinion of something. John B.

25. webOSlove unregistered

If we have the same bad experience with Sprint and we happen to report that bad experience I'm not understanding how that makes us « parrots ». Before the network teardown I experienced medicore speed at best. During the teardown, just awful. In my area where they claim to have improved, they still suck. Others have the same experience as me, so are they parrots, too ? Yes, we all know Sprint is doing this and that to their network, but that doesn't matter to the average user. What matters is the speed and stability of the network. So far, there's yet to be evidence of Sprint's « improvements » according to what commenters have said. We have/ had Sprint, and it was lack luster and still is. I wish for people to be more analysing and accurate when it comes to actually reading our comments. We didn't just all suddenly decide Sprint sucked. We have had experience with it therefore we are accurate in « providing our opinion on something. »

27. Slammer

Posts: 1515; Member since: Jun 03, 2010

I understand what you are saying but I believe you missed my point. A good percentage of PA readers are reps of different carriers. Many have probably never laid hands on a Sprint device or even used Sprint. They simply mimick jargon from others to propogate false opinions in order to present a cognitive attitude towards their respective carriers for sales. You know it and I know it. We can't ignore it. Comments such as "I'm leaving Sprint to go to Tmobile" is an old sales tactic. Some of these comments are generated by those that never had Sprint to begin with or any other carrier they may mention. It simply is to place a sense of hype in order to contemplate a defection. It grows aggravating to say the least. Knowing that carriers and their devices are highly dependent on software to connect, many of my friends have noticed a noticeable improvement just by performing a PRL or Profile update. This re-establishes the device for the software changes that may have conflicted the original profiles. My wife noticed an immediate improvement. I was not so lucky. Apparently, during the network upgrade, my device had coincidentally been suffering an internal 3G radio problem that would intermittently prevent me from establishing a signal. I was blaming Sprint and once I replaced my device, my phone has had very little problem connecting to the newtork. From where I'm standing, I'm not seeing the issues many people here seem to be complaining about. While it's not perfect due to 70% completion, the improvents have been very good. Best I've had in 7 years. John B.

4. fjftokyo

Posts: 65; Member since: Jun 06, 2013

If anything I feel that the east coast has to have a better newtwork then the west coast since 70% of Sprint is developed far yonder, but still a company that employes over 100,000 and can't upgrade or improve their network is just pittiful. Companies that only take millions but don't deliver the desired service should be investigated by the IRS and go bankrupt.

6. youlookfoolish

Posts: 193; Member since: Dec 14, 2012

Sprint made a profit losing 220k customers. That is amazing, but how is it possible? Then again T-Mobile added over a million customers and lost big bucks. This industry is backwards. Also, should Softbank acquire T-Mobile using their woe is me we lose customers shtick (which is looking like it works more every day.) Legere is going to run the company? Backwards man, backwards. Sprint sucks. (loses customers) Legere sucks. (loses money) This won't end well.

10. Gdrye

Posts: 111; Member since: Jan 02, 2012

its not backwards, t-mobile prices are not sustainable at where they are now, thats why even tho they add customers they lose money, sprint prices are closer to verizon and att, thats why they actually made profit in this situation. T-mobile has to raise their prices to become profitable, they know this as well, but thats not whats important, T-mobile needs customers..bad, and they are getting them at a fast rate but it goes to show you how small they really are because they are still #4 after all these quarters. But when that customer base goes up and they are satisfied, the prices will rise, or they will fail

11. npaladin2000

Posts: 165; Member since: Nov 06, 2011

Actually no, the issue is that T-Mobile has a massive amount of CapEx going on right now with their LTE buildout. Once that's completed in Mid2015 then their expenses go down. On the other hand, you have Sprint not investing in their network...they're counting on being merged with T-Mobile instead.

17. caspar347

Posts: 1; Member since: Jul 30, 2014

Hmm. Actually, I think it's the opposite. Sprint has insane CapEx expenses right now, just like T-Mobile. They're renovating their network on a scale far greater than T-Mobile. And they're not implementing suicide pricing, unlike Magenta.

21. Slammer

Posts: 1515; Member since: Jun 03, 2010

Don't mean to disrespect your view, but where the hell do you get the idea Sprint hasn't been investing in its network? A complete teardown and rebuild isn't cheap nor is it quick. Billions have already been spent and billions more has been allocated for completion. Please refrain from the hate. It consumes a logical thought pattern and blocks factual information. John B.

26. npaladin2000

Posts: 165; Member since: Nov 06, 2011

Based on the idea that my entire county is still EVDO-only when it comes to Sprint, while T-Mobile is lighting up LTE (and already has HSPA+ covering 50% of the place), and Verizon and AT&T (obviously) already have lit up LTE, though it isn't as fast as T-Mobile's HSPA+. We're a NYC exurb, if they're not spending here, then they're really shorting things. Then again, deploying BRS in the density required to allow for decent service is a very expensive proposition, so it makes business sense to wait for a merger you know is coming instead. I don't hate. Why bother? Rational analysis proves my point, i don't need to. I suppose I shouldn't complain though, as you can see from other comments, some areas Sprint hasn't even managed to deploy EVDO yet.

28. Slammer

Posts: 1515; Member since: Jun 03, 2010

I live in Rochester NY. It is a major metropolitan area. I'm not seeing the issues you claim. I can't deny the pains that came with the rebuild, but I have to say that the network has never been better. Places I had no service or little service, have better signal now and faster speeds have been very noticeable. As I explained in another post, software is crucial in establishing an accurate connection. A simple PRL or Profile update can possibly reset the software conflicts that came with the new network. It actually worked for several of my friends and my wife. It retrains the software within the device. Performing these updates every several months is highly recommended anyway. John B.

22. Slammer

Posts: 1515; Member since: Jun 03, 2010

It's possible because Dan Hesse's management team has had the difficult task of turning a multi-billion dollar company around that was faltering under old management. It doesn't happen over night. Much goes into restructuring a plan and guideline. The company has learned to do more with less. It has to because VZW and AT&T have always been able to more with more to retain dominance. Tmobile's aggressive giveaways, cannot be sustained. How do you make money if you give things away? John B.

23. MelvinPainter

Posts: 75; Member since: Apr 05, 2012

Four year later, and I am still waiting for a 3G signal in Fresno, CA. I wonder if it is because we only have 500,000+ residents?

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