Sprint has been battling a loss of revenue and subscribers over the last year. The mobile provider was unable to launch its Xohm service for WiMAX in the U.S. in the capacity it had hoped and ultimately decided to collaborate with Clearwire.
Sprint has been looking a bit better of late since the launch of its exclusive Palm Pre and the buzz the device generated. Sprint announced its financial data for Q2 2009 this week. The highlight of the report is that the company lost $384 million amounting to 13 cents per diluted share. Sprint reports total net operating revenues of $8.1 billion for the quarter. Sprint says that as of June 30, 2009 it has $4.6 billion of cash and cash equivalents and $1.5 billion in borrowing capacity available under its revolving bank credit combining for a total liquidity of $6.1 billion.
Sprint CEO Dan Hesse said in a statement, "In the second quarter, we made further progress on our efforts to enhance financial stability, improve the customer experience and reinvigorate the brand,” said Dan Hesse, Sprint Nextel CEO. “The widespread visibility surrounding our record-breaking June launch of the Palm® Pre™ handset gave us an unprecedented opportunity to showcase these improvements to customers as ‘a new Sprint.’ They saw a 3G network described by PC World magazine as the most reliable among competitors, key satisfaction and performance metrics in customer care improving for 18 straight months, advertising that won the top international award in Cannes, and a stable balance sheet with 2009 long-term debt maturities paid and enough cash on hand to cover maturities through 2011."
He continued saying, "In the quarter, we saw the best retail net add performance in the past seven quarters. We also saw the best quarterly sequential change in CDMA net add performance in two years, ARPU that has been stable for six consecutive quarters, continued prepaid growth, and improved sequential Adjusted Operating Income Before Depreciation and Amortization* (Adjusted OIBDA),” Hesse said. “However, we are not satisfied that we lost a quarter of a million customers in the quarter."
Sprint had a couple notable announcements for the quarter with WiMAX finally coming to Las Vegas and Sprint purchasing Virgin Mobile USA. The wireless provider also maintains that it will be launching WiMAX in six more markets this year. Sprint reports that it spent $321 million over the quarter compared to $291 million in Q1 2009 and $646 million in Q2 2008. Net debt decreased by $700 million to $16.4 billion during the quarter.
Sprint served 48.4 million customers at the end of Q2 2009 compared to 49.1 million at the end of Q1 2009. That number includes 34.4 million post-paid subscribers and 5 million prepaid subscribers along with 9.3 million wholesale and affiliate subscribers.
Wireless churn is a big metric in the industry and Sprint had a post-paid churn over the quarter of 2.055 compared to 2.25% in Q1. Boost pre-paid churn was 6.38% for the quarter compares to 6.86% the previous quarter.