Sprint is Almost Out of the Red, But Still Bleeding a Few Customers
April 29, 2014 7:30 PM
comment(s) - last by
Analysts react with enthusiasm at loss, which less than half the average expected size
Another, quarter has passed and more good news was in store for Sprint Corp. (
), America's third largest carrier. Sprint ended the quarter with 54 million customers, but its most impressive statistics were its financials.
For the quarter Sprint saw its best operating income ($420M USD) in seven years, on an earnings before interest, tax, depreciation, and amortization (EBITDA) of $1.84B USD (up from Q1 2013 by 22 percent, marking the third straight quarter of growth).
It trimmed its net loss to $151M USD -- an impressive showing that was roughly half the loss analysts were expecting,
. Total revenue -- $8.88B USD -- was also a small but positive surprise versus the $8.77B USD expected by the analyst crowd. Shares jumped in after-hours trading.
Sprint is finally is
seeing the light at the end of the tunnel for its expensive LTE rollout
, with 3G tearout and replacement scheduled to begin later this year after the LTE network extends its reach from 225 million Americans (currently) to 250 million Americans (by "mid-year").
But Sprint isn't resting; it's pushing on with its new Project Spark advanced LTE effort. While its coverage still trails U.S. market leader Verizon Wireless (a wholly owned subsidiary of Verizon Communications Inc. (
)), Sprint is hoping that the spunkier LTE network -- featuring tri-band 800MHz, 1.9GHz and 2.5GHz spectrum combined to
give voice-over-LTE (VoLTE)
and 50-60 Mbits/s downloads -- will allow it to actually seize the lead in select markets. The VoLTE bit will turn on officially in July; for now Project Spark is actively bringing faster download speeds on a variety of smartphone devices.
Sprint finally gave some hints regarding the rollout plans for Project Spark, saying it would reach 100 of America's largest cities in the next 3 years. It today turned on 6 new cities this week, including Orlando, Florida and Oakland, California. In total, 24 markets now have Project Spark grade coverage.
Last, but not least, Sprint's family plan marketing appears to be working reasonably well. It enrolled 3 million subscribers in
its "Framily" (Friends + Family) plan
, which is showing early signs of success.
The only real disappointment for Sprint was after
Q4 2013's brief return to subscriber growth
, Sprint shed 231,000 net subscribers amidst increased churn. It also lost 334,000 prepaid customers, but that number is actually far smaller when you take away a temporarily blip from Lifeline customers, whose Sprint subscriptions will be renewed after recertification. While losing customers at any rate isn't ideal, those numbers
compare favorably to Q1 2013, when Sprint lost 560,000 customers
Sprint also announced a new deal with
fast-growing internet radio provider Spotify
to offer discounted or free subscriptions to its customers. Under the deal, Sprint Framily smartphones will come bundled with 6 free months of Spotify. After that you will be given a discounted rate of either $4.99 (for Framily plans with more than 5 members) or $7.99 USD per month (for Framily plans with 2-4 members). Non-Framily plan members will get only 3 free months and will be stuck paying the full rate -- $9.99 USD per month.
Framily plan members will get up to six months of Spotify service for free, and as much as half off their monthly subscription after that.
It looks like Sprint is finally showing signs of recovery under the
patient hand of its new owner, Japan's Softbank
Given Sprint's ongoing price war with Deustsche Telekom AG's
) T-Mobile USA brand, a key ongoing storyline to watch is Sprint/Softbank's
reported intention to field a merger bid
for this rival. The move would
combine America's third and fourth largest carriers
, but is
being frowned on by regulators
who fear it would limit competition. Given that these same regulators
a prospective T-Mobile purchase
by AT&T, Inc. (
), it seems unlikely that Sprint will seriously pursue the plan.
[Image Source: Flickr (top); Getty Images (bottom)]
But without or without T-Mobile, Sprint looks to finally be finding its way back to success.
Sprint [press release]
This article is over a month old, voting and posting comments is disabled
4/30/2014 1:59:43 AM
We've been pretty happy with Sprint, which we use through Ting. While coverage in Denver isn't spectacular, it's not bad. It's hard to complain when we are paying around $57 total for 4 smartphones with all the talk, text, and data that we need.
Dear Sprint, Stay away from T-Mobile
4/29/2014 8:48:28 PM
Hey sprint, you lost me with your drawn out campaign to screw over every single SERO discount plan subscriber and unexplained hatred of Microsoft when you had the best Winmo handsets. The legacy still shows with your pathetic Windows Phone 8 models. An ancient HTC and the retreaded leftover Samsung android hardware Ativ S.
Stay away from T-Mobile! :p
4/30/2014 10:06:52 AM
I'm an existing sprint user with 5 lines (been a customer since 07) and hate them.
Data used to suck but is better now (still not great) but voice has progressively gotten worse. I cant get a dialtone half the time, calls drop everywhere, and voice quality is marginal.
Their once silver bullet (unlimited data) is no longer a selling point now that wi-fi is widely available and their prices are no longer cheap, in fact they are actually higher than other carriers.
The final straw is their lack of support for Windows OS and refusal to carry Nokia products.
So last night I began my departure from Sprint. Bought a Nokia Lumia 1520 and moving over to AT&T. As each line on my account comes off contract I will move the line off.
I paid cash for my Lumia and will not being dong contracts any longer so if I dont like AT&T I can hop over to T-Mobile, MetroPCS, StraightTalk, or any other carrier I choose.
"I want people to see my movies in the best formats possible. For [Paramount] to deny people who have Blu-ray sucks!" -- Movie Director Michael Bay
Apple to Overhaul iTunes Radio as Pandora, Spotify Popularity Grows
April 9, 2014, 2:03 PM
Sprint CEO Dan Hesse Tips Nationwide HD Voice Rollout for July
March 26, 2014, 9:52 AM
Sprint Chairman Says Carrier Still Interested in T-Mobile Purchase
March 10, 2014, 2:11 PM
Sprint Surprises With Customer Adds in Q4 2014 as T-Mobile Bid Looms
February 11, 2014, 9:56 AM
Japan's Softbank Hungers for T-Mobile, FCC Says "Not so Fast"
February 4, 2014, 7:00 PM
Retiree Sues Apple For $7,500 for Wiping Honeymoon Photos From His iPhone
November 30, 2015, 10:23 AM
iPhone 7 May Pack 3-4 GB Memory, More Storage; 4-Inch Comeback is Rumored
November 20, 2015, 10:12 PM
OnePlus One, OnePlus 2 Will Receive Android Marshmallow in Q1 2016
November 16, 2015, 9:58 AM
Lenovo Whoa: Motorola Droid MAXX 2 and Turbo 2 Break Cover in Leaks
October 26, 2015, 3:12 PM
Leak: Apple Preps for First Real Android App Foray With New Apple Music App
October 24, 2015, 1:59 PM
Pepsi Smartphone? Empty Calories Coming Soon to the Midrange
October 12, 2015, 11:41 PM
Most Popular Articles
Top 5 Smart Watches
July 21, 2016, 11:48 PM
Free Windows 10 offer ends July 29th, 2016: 10 Reasons to Upgrade Immediately
July 22, 2016, 9:19 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information