Sprint Posts $643M Loss Amidst Best-Ever Service Revenue, Major Changes
Sprint finished Q1 with its highest-ever wireless service revenues and prepaid subscribers, while shutting down Nextel and negotiating a merger.Sprint is having a very busy 2013. It's in the process of shutting down its Nextel network at the end of the second quarter and hustling to funnel over those departing customers to the Sprint network. It's also building out a Long Term Evolution (LTE) network that's well behind the efforts of Verizon Wireless and AT&T; trying to buy out 4G provider Clearwire, after realizing that owning half of the company wasn't quite enough to steer it as it would have liked; closing a deal with Japanese carrier Softbank that entails handing over a 70 percent share of Sprint; and, most recently, considering an offer from satellite TV provider Dish Network that would require backpedaling out of the Softbank deal. Then there's the not-simple priority of trying to compete in a wireless market that's growing increasingly saturated. On April 24, Sprint shared the results of its fiscal 2013 first quarter, which reflected much of the above.
It posted a net loss of $643 million—an improvement over a loss of $863 million a year ago. But its wireless service revenues of $7.1 billion were its highest ever, increasing by nearly 7 percent year over year.