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
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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
Google's Proposals for Search Antitrust Settlement Shot Down by European Commission
December 20, 2013, 8:52 PM
E-Cigarettes Included in NYC's Smoking Ban
December 20, 2013, 4:00 PM
BlackBerry Partners with Foxconn for BB10 Devices
December 20, 2013, 10:43 AM
3D Systems Acquires Xerox’s Solid Ink Teams in Oregon
December 18, 2013, 7:54 PM
While FCC Debates Allowing In-flight Voice Calls, Delta is Already Saying “Nope”
December 18, 2013, 12:11 PM
New Mac Pro Launches Tomorrow, Starts at $2,999
December 18, 2013, 10:56 AM
Most Popular Articles
Dogecoins and Its IBM Developer Ride Meme to $130M+ Fortune
December 18, 2013, 4:21 PM
China's Moon Rover Lands Safe and Sound, Starts Snapping Pics
December 16, 2013, 1:22 PM
Top Microsoft Graphics Genius Defects to Google
December 17, 2013, 4:27 PM
Harvard Undergrad Busted by Wi-Fi after Making Bomb Threat to Avoid Finals
December 18, 2013, 10:37 AM
NSA Debates Granting Snowden Amnesty if He Keeps His Mouth Shut
December 16, 2013, 1:17 PM
Latest Blog Posts
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information