Sprint cuts expenses as revenue drops

5 May 2009

US-based cellco Sprint Nextel has reported a 12% year-on-year drop in operating revenues for the first three months of 2009, down to USD8.21 billion. Net losses for the quarter fell to USD594 million, down from USD505 million in the same period a year earlier. The company cut its capital expenditure to USD291 million in the period ended 31 March 2009, USD1.07 billion less than in 1Q 2008. Sprint said that the cut in expenses was part of its plan to ensure the financial stability of the company, generating USD796 million in free cash flow. Sprint, the third largest mobile operator by subscribers in the US, had 49.08 million customers at the end of March 2009, a 3.67 million drop from the total of 52.7 million a year earlier. However, the company reported a rise in subscriptions to its wholesale services, up 683,000 to 9.38 million at the end of the quarter.

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