Sprint Q3 revenues edge up 2%

27 Oct 2011

US cellco Sprint Nextel has reported net operating revenues of USD8.33 billion for the three months ended 30 September 2011. This figure represents a 2% increase compared to the USD8.15 billion generated in 3Q10. Adjusted OIBDA for 3Q11 was USD1.40 billion, compared to USD1.34 billion one year earlier. In terms of operating income, Sprint reported a profit of USD208 million, compared to a loss of USD213 million during the corresponding period in 2010. The cellco reported a net loss of USD301 million for the quarter, a marked improvement on the USD911 million loss reported during the same period one year earlier. Retail wireless service revenues increased by 7% to USD6.8 billion for the quarter, primarily due to higher post-paid ARPU, as well as an increased number of pre-paid subscribers; Sprint credits the improvement to the success of the Boost Monthly Unlimited offering, additional market launches of the Assurance Wireless product line and the re-launch of the Virgin Mobile brand.

In operational terms, Sprint served more than 53 million wireless customers at the end of Q3. This figure includes 32.9 million post-paid subscribers, 14.3 million pre-paid subscribers and approximately 6.3 million wholesale and affiliate subscribers, who utilise its CDMA network. For the quarter, Sprint added nearly 1.3 million net wireless customers, of which 441,000 were retail subscribers and 835,000 wholesale/affiliate subscribers. Sprint added a net 485,000 pre-paid subscribers during the quarter, which includes the net addition of 839,000 pre-paid CDMA customers, offset by the net loss of 354,000 pre-paid iDEN customers. Quarterly wireless post-paid ARPU increased from USD55 to USD58 per month, the largest year-on-year growth in almost twelve years. Monthly pre-paid ARPU for the quarter was approximately USD27, compared to USD28 in the year-ago period.

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