USA's Sprint Shrinks its Quarterly Loss
Published on: 11th Feb 2014
Note -- this news article is more than a year old.
By: Ian Mansfield
USA based Sprint has reported a slight rise in its fourth quarter revenues although it still loss more than a billion dollars in the three months.
The company posted quarterly revenues of USD9.14 billion, which was a slight increase on the USD9 billion a year ago. At the same time, they shrank their quarterly loss from USD1.3 billion in Q4 2012 to just over USD1 billion in Q4 2013.
Operating loss was $576 million in the fourth quarter, a 22 percent year-over-year improvement. The company cited the improvements as mainly down to network savings resulting from the Nextel platform shutdown and lower net subsidy expense were partially offset by the loss of Nextel platform revenue and the consolidation of Clearwire's results.
Sprint ended the year with 53.9 million Sprint platform subscribers - its highest level ever - after adding 58,000 postpaid subscribers, 322,000 prepaid subscribers and 302,000 wholesale and affiliate subscribers in the fourth quarter.
Sprint sold 5.6 million smartphones in the fourth quarter and 20.5 million smartphones for the year with smartphone sales mix reaching 95 percent for postpaid and 66 percent for prepaid in the quarter.
The company expects 2014 Adjusted EBITDA to be between $6.5 billion and $6.7 billion.
The company expects 2014 capital expenditures of approximately $8 billion.
The company continues to expect that by the middle of this year LTE coverage will reach 250 million people and the voice/3G network modernization deployment will be complete.
In other news, the company announced that its higher speed service, branded Sprint Spark launches today in Philadelphia and Baltimore and, with the recent launch in Kansas City, is currently available in 14 markets. The service offers download speeds of up to 50-60Mbps.