Sprint Continues to Shrink its Quarterly Losses
Published on: 29th Apr 2014
By: Ian Mansfield
USA based Sprint has cut its first quarter loss by more than three quarters although it still managed to bleed $50 million per month during the first three months of this year.
The company posted a modest rise in revenues, of USD8.88 billion, compared to USD8.79 billion a year ago, while the net loss came in at USD151 million, compared to a loss of 643 million a year ago.
Quarterly Adjusted EBITDA of USD1.84 billion improved by over $300 million compared to the first quarter of 2013, driven by growth in wireless, partially offset by a decline in wireline.
The growth in wireless Adjusted EBITDA was primarily attributable to lower wireless expenses such as postpaid subsidy associated with impacts of the newly launched Sprint Easy Pay installment billing plan and device sales mix, lower customer care and cost of service expenses.
At the end of the quarter, the Sprint platform served nearly 54 million subscribers.
Sprint reported a net loss of 231,000 Sprint postpaid customers during the quarter largely due to expected elevated churn levels related to service disruption associated with the company's ongoing network overhaul.
Sprint prepaid net loss of 364,000 customers was primarily caused by changes in the Lifeline program recertification process that impacted the Assurance Wireless subscriber base. Sprint added 212,000 wholesale and affiliate customers during the quarter.
The company now expects calendar 2014 Adjusted EBITDA to be between $6.7 billion and $6.9 billion.
The company expects calendar 2014 capital expenditures of approximately $8 billion.