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Sprint CEO Dan Hesse
Despite record wireless income, Sprint still posts a loss

Sprint has offered up its earnings report for the first quarter of 2013; the wireless carrier posted wireless service revenue of $7.1 billion, the company's highest ever wireless service revenue. The $7.1 billion figure is a 9% gain year-over-year.

Sprint also posted an operating income of $29 million including accelerated depreciation of approximately $360 million. Sprint says that its adjusted Operating Income Before Depreciation and Amortization (OIBDA) of $1.5 billion was the highest in nearly 4 years even though it had made investments during the quarter.

“This is a transformative year for Sprint and we’ve gotten off to a good start,” said Dan Hesse, Sprint CEO. “Record Sprint platform service revenue and subscriber levels fueled our performance.”

Sprint's operating income of $29 million for Q1 of 2013 is a significant improvement over the $255 million loss it posted in Q1 of 2012. Consolidated net revenues for the company were $8 billion and showed no gain year-over-year. The overall net loss for Sprint was $643 million with a diluted net loss of $.21 per share for Q1 of 2013. The net loss per share in Q1 of 2012 was $.29.

Sprint says that its unlimited data and smartphones continue to drive growth for its wireless segment. 86 percent of all quarterly sales for Sprint and its postpaid handset business were smartphones. In addition, Sprint says that it sold 1.5 million iPhones during Q1 with 43% of those iPhones sold to new customers. Sprint also notes that it is on track to shut down the Nextel platform at the end of Q2 2013.

One of Sprint's significant investments during the first quarter of 2013 was the closing of its acquisition of Clearwire for $80 million.

Source: Sprint

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Numbers don't look good but
By djc208 on 4/25/2013 8:03:56 AM , Rating: 3
It seems that the money they are spending is going to all the right places. They've lit off 4G service in my area recently, even though we weren't on any of the lists to get it this year. It's still a little flaky, but I've seen it in a lot of places and when I get it it's very fast.

I don't need the unlimited data aspect, but for now at least their service is the best for the money for me.

By mcnabney on 4/24/2013 9:54:22 AM , Rating: 2
They still posted their 34th straight quarterly loss.

And to reinforce how horrible this is, the wireless division of Verizon just pushed their EBITDA over 50%. Of course you can pile up a lot of money with a quarterly revenue of $19.5B.

If it helps
By inperfectdarkness on 4/24/2013 12:42:32 PM , Rating: 2
If these investments in infrastructure pay off, then Sprint will be sitting pretty. Otherwise, consumers are just going to endure the slings and arrows of Verizon (don't even get me started with the compatibility issues they have with their fiber service).

By drycrust3 on 4/24/2013 2:29:47 PM , Rating: 2
Consolidated net revenues for the company were $8 billion and showed no gain year-over-year. ... Sprint says that its unlimited data and smartphones continue to drive growth for its wireless segment.

The fact they say they have had almost no increase in income, yet one of their primary products has been increasing suggests there is a problem.
As I've said before, the danger you have with unlimited plans is they are prone to "being flogged" by those users, meaning they actually cost the supplier more than the user is charged.

Investing isn't cheap
By Wererat on 4/25/2013 10:13:41 AM , Rating: 2
Short version: Sprint attempts to get its e-house in order so that "unlimited" isn't a sad joke. In the past, I had a Sprint smartphone and its download capability was somewhere slower than a 56k modem.

It's working (gross revenue is up) but that costs money, so profits aren't.

I'm in no hurry to get back into the world of two-year contracts, but from this info, Sprint is turning the corner.

"I mean, if you wanna break down someone's door, why don't you start with AT&T, for God sakes? They make your amazing phone unusable as a phone!" -- Jon Stewart on Apple and the iPhone
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