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

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

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