Sprint losses widen in Q3

30 Oct 2009

US mobile operator Sprint Nextel has reported a net loss of USD478 million for the third quarter of 2009, up 47% from the USD326 million deficit posted in the same period a year earlier. The company cited lower revenues, particularly in its post-paid segment, as the major contributing factor to its declining profit margin. Revenues for the quarter fell by 9% year-on-year to USD8.04 billion. Operating expenses climbed marginally, up from USD8.25 billion to USD8.29 billion a year later, with higher operating costs for products and services eating into the company’s operating income before interest, depreciation and amortisation (OIBDA) which fell 17% from USD1.82 billion in the three months ended 30 September 2008, down to USD1.51 billion in Q309.

Sprint’s consolidated customer base fell from 50.54 million at the end of September 2008 to 48.28 million a year later. The company lost 4.15 million post-paid customers year-on-year ending September 2009 with 33.64 million. The firm’s pre-paid segment, however, recorded some growth over the year, ending Q309 with a total of 5.71 million customers, up from 3.91 million a year earlier.

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