Sprint Nextel grows wireless subscribers by 111,000 in Q2

29 Jul 2010

US telco Sprint Nextel has announced operating revenues of USD8.02 billion for the three months ended 30 June 2010. This figure represents a 1% drop from USD8.14 billion recorded in 2Q2009. Sprint Nextel recorded 111,000 net additions during 2Q10, giving it its first quarterly net wireless subscriber growth in three years. Sprint’s post-paid revenue decreased from USD5.89 billion to USD5.47 billion year-on-year, as the cellco lost 228,00 contract users, to finish the period with 33.16 million. In contrast, pre-paid revenue increased from USD469 million to USD928 million year-on-year, which included the addition of 173,000 new pre-paid customers, for a pre-paid base of 11.2 million. Sprint Nextel posted a net loss of USD760 million for 2Q2010.

Sprint Nextel CEO Dan Hesse stressed the importance of Sprint’s pre-paid business, and highlighted the re-launch of the Virgin Mobile brand, the introduction of the ‘Common Cents’ mobile in about 700 Wal-Mart stores this quarter, and a positive customer response to Assurance Wireless, Sprint’s government-subsidised wireless programme, as key factor’s behind the resurgence in pre-paid user figures. Mr Hesse commented: ‘Our intense focus for the past ten quarters on improving the customer experience, strengthening our brands, and generating cash are paying off. With strong cash flow, stable OIBDA and widespread third-party recognition for the improvements we’re making in the customer experience, which in turn strengthens our brands, we feel we can confidently improve our subscriber forecasts for the second half of 2010 and deliver positive total net wireless subscriber additions for the remainder of the year’.

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