Sprint 3Q12 revenues increase 5% to USD8.76bn

26 Oct 2012

US mobile operator Sprint Nextel has reported net operating revenues of USD8.763 billion for the three months ended 30 September 2012, a 5% increase on the USD8.333 billion reported one year earlier. Adjusted OIBDA for 3Q12 was USD1.279 billion, compared to USD1.402 billion one year earlier. In terms of operating income, Sprint reported a loss of USD231 million, compared to a profit of USD208 million during the corresponding period in 2011. The cellco reported a net loss of USD767 million for the quarter, more than double the USD301 million loss booked during 3Q11. CAPEX increased 96%, to USD1.489 billion on account of Sprint’s ongoing Long Term Evolution (LTE) rollout. Sprint has launched LTE in 32 cities and expects that 4G services will be available in more than 115 additional cities in the coming months.

In operational terms, Sprint served 55.963 million wireless customers at the end of Q3. This figure includes 32.120 million post-paid subscribers, 15.438 million pre-paid subscribers and 8.405 million wholesale and affiliate subscribers, who utilise its CDMA network. For the quarter, Sprint lost 423,000 net wireless customers, the bulk of which were Nextel iDEN customers. Total retail post-paid monthly ARPU increased from USD57.65 to USD61.18 year-on-year. Sprint recorded approximately 1.5 million iPhone sales in July-September, with 40% representing new customers. The company also surpassed the one million LTE-equipped smartphone mark prior to the launch of iPhone 5. Dan Hesse, Sprint CEO, commented: ‘The Sprint platform performed well, with strong net subscriber additions, record third quarter post-paid and prepaid churn and robust revenue growth, contributing to Adjusted OIBDA of USD1.28 billion even as we continue to invest in Network Vision and position the company for future growth. As a result, we believe we will slightly exceed the top of the range of our recently increased adjusted OIBDA forecast’.

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