Wireless provider Sprint Nextel Corp. on Wednesday said second-quarter profits dropped sharply on takeover costs and expenses tied to its planned rollout of a WiMax network. The Reston, Virginia-based company, with operational headquarters in Overland Park, Kansas, said it earned $19 million, or 1 cent per share, during the three months ending June 30, compared with $370 million, or 10 cents per share, during the same period a year ago. And although profits are down sharply, the company said it earned 25 cents per share, still managing to beat the 22 cents per share prediction of analysts surveyed by Thomson Financial. However, revenue during the quarter rose only about 2 percent, from $10 billion to $10.16 billion, missing Wall Street's estimate of $10.2 billion.
The company, which has struggled to keep up with rivals AT&T and Verizon Wireless, said it increased its subscriber base during the quarter by 400,000, up to 54 million customers. Wholesale channels contributed 155,000 new subscribers while affiliates generated 33,000 new subscribers. During the same quarter, AT&T added 1.5 million customers while Verizon Wireless added 1.6 million customers, but lost 300,000 through the bankruptcy of Amp'd Mobile.
The company, which has struggled to keep up with rivals AT&T and Verizon Wireless, said it increased its subscriber base during the quarter by 400,000, up to 54 million customers. Wholesale channels contributed 155,000 new subscribers while affiliates generated 33,000 new subscribers. During the same quarter, AT&T added 1.5 million customers while Verizon Wireless added 1.6 million customers, but lost 300,000 through the bankruptcy of Amp'd Mobile.
Chief Financial Officer Paul Saleh warned during a conference call with analysts that Sprint Nextel would likely see a loss of customers in the third quarter as more of them are jettisoned for not paying their bills and other reasons.
"The competitive environment remains quite strong so we will see some challenges," Saleh said. "But we expect the resumption of growth in subscribers in the fourth quarter."
Overall expenses during the quarter rose 8 percent to $8.5 billion, including higher network maintenance and marketing costs. Wireless revenues rose 3.5 percent from $8.5 billion to $8.8 billion while revenue from more traditional wireline business remained level at $1.6 billion. Sprint-Nextel has reiterated its guidance of between $41 billion and $42 billion in revenue and operating income before taxes and depreciation of between $11 billion and $11.5 billion. Analysts are expecting revenue of $41 billion and earnings of 87 cents per share.
View: Full Story on SiliconValley.com
I use my phone all the time and I never get failed calls. Must be the area you people are in. And please dont compare T-Mobile to Sprint. T-Mobile is terrible. Being a European based company might explain it.
I use my phone all the time and I never get failed calls. Must be the area you people are in. And please dont compare T-Mobile to Sprint. T-Mobile is terrible. Being a European based company might explain it.
Which plan is this? I am just curious, because their cheapest plan is 200 minutes for $29, and the data plan has always been an extra $15 for unlimited. Plus nights and weekends that start at 7pm is an extra $5 for the lowest plans, unless you want them to start at 9pm which is included.... and if you don't have the "Free Incoming" plan, free mobile to mobile is also an extra $5 per month...
I use my phone all the time and I never get failed calls. Must be the area you people are in. And please dont compare T-Mobile to Sprint. T-Mobile is terrible. Being a European based company might explain it.
I'd love to know what plan that is also... because when I added internet to my samsung A900 phone for unlimited internet... and only that it cost me $69 a month for the cheapest plan... and i still had no texting...
I use my phone all the time and I never get failed calls. Must be the area you people are in. And please dont compare T-Mobile to Sprint. T-Mobile is terrible. Being a European based company might explain it.
I'd love to know what plan that is also... because when I added internet to my samsung A900 phone for unlimited internet... and only that it cost me $69 a month for the cheapest plan... and i still had no texting...
Look up "SERO" on google. Great plans. I'm on the $30.00 a month plan (~$36 after taxes) and I get unlimited text, unlimited data service (PowerVision), 500 anytime minutes, unlimited nights and weekends, unlimited m2m, free roaming.
I use my phone all the time and I never get failed calls. Must be the area you people are in. And please dont compare T-Mobile to Sprint. T-Mobile is terrible. Being a European based company might explain it.
I'd love to know what plan that is also... because when I added internet to my samsung A900 phone for unlimited internet... and only that it cost me $69 a month for the cheapest plan... and i still had no texting...
Look up "SERO" on google. Great plans. I'm on the $30.00 a month plan (~$36 after taxes) and I get unlimited text, unlimited data service (PowerVision), 500 anytime minutes, unlimited nights and weekends, unlimited m2m, free roaming.
Looks like thats only good for a new activation, however that must be it...
There is a link that says this..
However the terms state this "Add to an Existing Account"
"Available to new Sprint customers or existing Sprint customers adding a new line of service (not available for migration from an existing line of service)"
Good job Sprint. Keep paying me and youll be on my A list mwahahhaa
Commenting has either been disabled on this article or you are not logged in. Click here to login or register, its free!
Note: Anonymous commenting is disabled in order to keep the quality of responses to a high standard.