Even with Record $7.1 Billion in Q1 Wireless Service Revenue, Sprint Still Posts Loss
April 24, 2013 9:29 AM
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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.
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Investing isn't cheap
4/25/2013 10:13:41 AM
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.
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
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