Sprint Records Net Loss, But Adds 1.3 Million Subscribers
October 26, 2011 12:30 PM
comment(s) - last by
(Source: Into Mobile/AP)
Sprint hopes for big boost from iPhone, but may be hit by tethering defectors
Sprint Nextel Corp. (
), America's third largest carrier, had some good news to report today with its
latest earnings report
The company reports that in the third calendar quarter of 2011, it earned $8.3B USD in net revenue and $1.3B USD in adjusted operating income before depreciation and amortization (OIBDA).
Sprint has reached its highest subscriber totals in the last five years, driven by 1.3 million new subscribers in the quarter --with 304,000 new standard (post-paid) subscribers, 485,000 new prepaid subscribers, and 835,000 affiliate (e.g. business) subscribers.
The company did all of this without the Apple, Inc.'s (
) iPhone, which
is now on Sprint’s network
. The company writes:
Growth in Sprint brand net additions was achieved without the benefit of Apple’s iPhone 4S and iPhone 4, which launched Oct. 14. The launch of this iconic device resulted in Sprint’s best ever day of sales in retail, web and telesales for a device family in Sprint history. The response to this device by current and new customers has surpassed initial expectations. The iPhone is expected to be accretive for Sprint, and iPhone users are expected to be among Sprint’s most profitable customers.
Still, the outlook for the company isn't altogether rosy. The company reported a net loss of $301M USD for the quarter.
Adding to the negative side of the picture, the firm recent killed
unlimited data on its tethered and tablet connections
, and forum traffic indicates that some customers are already cancelling their tethering service. With smartphone data potentially on the chopping block next, it remains to be seen how much more Sprint subscribers will put up with.
Also we recently raised concerns about how Sprint is allowing text message frauders to
victimize its customers
, happily billing customers' plans without their approval and reportedly pocketing a cut of the revenue from the fraud scheme.
These concerns aren't enough to entirely outshine the positive movement at Sprint, but they do give cause to pause when considering a move to Sprint’s network.
This article is over a month old, voting and posting comments is disabled
10/26/2011 4:17:31 PM
Didn't I read somewhere that Sprint was planning on a year or two of net losses while building out it's switch from WiMax to LTE?
I swear they basically came out and told investors they were going to have a net loss for a while.
10/26/2011 11:24:15 PM
Seems investors don't believe the companies when they say this, they just like freaking out when it happens, no matter how much warning they get :P
"Can anyone tell me what MobileMe is supposed to do?... So why the f*** doesn't it do that?" -- Steve Jobs
Sprint Kills "Unlimited" Tethering, Unveils Industry's Most Pricey Data Plans
October 24, 2011, 12:48 PM
Editorial: Sprint is Allowing Spammers to Defraud Its Customers
October 21, 2011, 10:04 AM
Sprint Taking iPhone 4/iPhone 4S Pre-Orders; Offers Unlimited Plans
October 6, 2011, 9:47 AM
iLate: CEO Tim Cook Says Apple Watch Will Ship in April
January 28, 2015, 3:03 PM
Amazon's Fire Sale on Fire Phone Steps up in UK w/ 1-Day Sale @ $150 Unlocked
January 28, 2015, 11:53 AM
Apple Sees Record Profit of $18 Billion, Sells 74.5 Million iPhones in Q1 FY2015
January 27, 2015, 6:01 PM
Apple Might Miss High-End of Analyst Estimates, Microsoft Earnings Hint
January 27, 2015, 3:14 PM
Microsoft Smartphone Sales Up 28 Percent as Lumia Budget Models Gain Ground
January 27, 2015, 8:30 AM
Quick Note: Special 20th Anniversary PlayStation 4 Raises $128,000 for Charity
January 26, 2015, 4:14 PM
Most Popular Articles
Under the Hood: How DirectX 11.3 and 12 Will Supercharge Windows 10 Gaming
January 23, 2015, 12:34 PM
2016 Cadillac CTS-V Packs 640 hp Punch with 200 mph Reach
January 23, 2015, 3:25 PM
Microsoft Shows Off Latest Windows 10 Build, Preps it for Next Week Release
January 21, 2015, 2:57 PM
Google Fixes Homophobic "Bug" in its Translator
January 27, 2015, 2:31 PM
Will Google Become America's Fifth Major Carrier?
January 22, 2015, 12:42 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 2015 DailyTech LLC. -
Terms, Conditions & Privacy Information