Sprint: profit and subscribers down in Q3

2 Nov 2007

Sprint Nextel reported net profit of USD64 million in the three months to 30 September, down from USD279 million in the corresponding period of 2006, as it continued to lose subscribers. The operator subsequently withdrew its 2008 profit growth forecast, sending shares down 2.4% yesterday, reports Reuters. Net operating revenues for the US’s third largest mobile operator declined 4% to USD10.04 billion, below the average analyst estimate of USD10.23 billion, with Sprint confirming that achieving customer growth would continue to be tough in the current quarter, following a 60,000 net loss in Q307. Sprint has been losing market share to bigger rivals such as AT&T and Verizon Wireless, and has reported a loss of higher income post-paid customers in 2007. Post-paid churn rose to 2.3% from 2% in the second quarter, the company said.

United States, Sprint Corporation (now part of T-Mobile US)