Jump to content

Sprint's 4th Quarter Earnings


Recommended Posts

Interesting facts. More in depth comments may come later as more delve into it. Sprint sold 1.8 million iPhones; 40% from new customers. Sprint added 161,000 subscribers while analysts predicted 272,000. What direction do you think Sprint is going?





Sprint loss widens on iPhone costs


(Reuters) - Sprint Nextel (S.N) posted a bigger loss, reflecting the higher costs of selling Apple Inc's (AAPL.O) iPhone. But the loss was smaller than expected because its signed up fewer subscribers than expected.

Since Sprint subsidizes the cost of some of its phone sales, its costs rise and profit dwindles the more customers it wins. But since subscriptions fell short of expectations, its loss was smaller than expected.

Sprint's loss was 35 cents per share excluding unusual items compared with Wall Street expectations for a loss of 37 cents per share, according to Thomson Reuters I/B/E/S.

Its profit margin based on operating earnings before interest, depreciation and amortization (OIBDA) fell to 9.5 percent from 16 percent a year earlier but beat expectations for 8.6 percent, according to eight analyst estimates Reuters compiled.

"It's still unbelievably depressed and subscribers were below expectations," said Roe Equity Research analyst Kevin Roe who also noted that Sprint's targets for the full year were not particularly impressive.

The margin decline was hurt by the hefty cost of selling the iPhone.

Sprint's rivals Verizon Wireless and AT&T Inc (T.N) also struggled in the fourth quarter with rising costs.

Sprint added 161,000 total net subscribers in the quarter compared with the average expectation for 272,000 additions from eight analyst estimates compiled by Reuters.

But it sold 1.8 million iPhones in the quarter, 40 percent of which to new customers.

Sprint's loss widened to $1.3 billion, or 43 cents per share, from $929 million, or 31 cents per share, a year earlier.

Revenue rose to $8.72 billion from $8.3 billion and was slightly ahead of Wall Street expectations for $8.69 billion, according to Thomson Reuters I/B/E/S.

Sprint forecast full-year net service revenue growth of 4 percent to 6 percent and forecast 2012 adjusted OIBDA between $3.7 billion and $3.9 billion.

Link to comment
Share on other sites

Sprint is definitely giving effort in hopes of making it in the long term. And that was quite a few iPhones sold for their first quarter. Very impressive. I think they will be heading for growth and greater profitabiity by the end of this year with NV & LTE. Go Sprint!

Link to comment
Share on other sites

Sprint is afraid to discuss Clearwire in association with investors. Definitely spooked! :frantic:


iPhone numbers beat my expectations. I was expecting 1M to 1.2M. 1.8M was a much bigger number than I thought possible. :clap:

Link to comment
Share on other sites

The more I look at the numbers, the more I see how deep of a hole Sprint has dug with the iPhone and NV. Although its still a mixed bag of good and bad, I'm begining to wonder how long it will take or if Sprint can dig themselves out of this?


It's going to be a very long and bumpy ride. I expect next two quarters to not be better. iPhone sales are going to slow down, if they haven't already. WiMax device sales are plummeting. It's not going to be until a really hot LTE device hits the market and the LTE iPhone before the financials really start to take a serious turn for the better.


People will not subscribe to Sprint because of Network Vision. I doubt there are many consumers who say, "I'm going to become a Sprint customer when Network Vision shows up in Dubuque." It's not really a marketable thing. You aren't going to see it on billboards. Network Vision is more about operating costs and reducing churn. People expect their wireless network to perform. It's not a selling point. It's supposed to work. And NV is just going to do that. Make a functioning network, that is easier and cheaper for Sprint to run and maintain.


So it is going to be a long time until Sprint starts making money. But even though they won't be making money soon, these things were necessary for the long run. No iPhone + No Network Vision = Sprint Bankruptcy.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.


  • large.unreadcontent.png.6ef00db54e758d06

  • gallery_1_23_9202.png

  • Posts

    • That's actually really useful information when trying to locate/map these. On CellMapper, if I look for B46 it cuts through a lot of th noise.
    • Crunching the numbers a bit more, covering the full MSA would result in slightly under 80% population coverage. But they'd have to deploy on essentially every micro/macro cell in the area.   Yeah, I'm not gonna pretend like I know how either negotiations with squatters or Auction 108 will pan out. That said, I can't see 3.45GHz being *that* valuable to squatters considering the strict buildout requirements.  Another interesting thought I had was a possible spectrum trade with Dish. Dish is still leasing 600MHz to T-Mobile in quite a few metro areas, and I'm sure T-Mobile is looking ahead to what their lowband spectrum situation will be once those leases expire. If T-Mobile is truly going to rely on n71+n41 CA as much as they say they will, it sure would be nice to be working with more than 5MHz-10MHz of n71 uplink capacity. Don't go quoting me on that, though, total (pipedream) speculation haha.
    • Great job on your analysis of small cells versus the 3.45GHZ and the population coverage requirements. I wonder if the fcc is stalling because they may address the key limitation of of 2.5: the convoluted frequencies. Not sure how they would get there, but it would be better public policy if you could actually use a single license in current times, ie 5, 10 or 20MHz. Of course they could also go in more of a nonprofit or small business direction. But most likely they will keep it as planned given how messy the transition would be. In many/most metro areas BRS/EBS is fully licensed. Would be nice if they put pressure on the squatters.
    • I didn't actually look at the buildout requirements before making that comment - they're definitely going to have to deploy on macro sites if they want to hit the buildout requirements. PEA001 has a population of 25,237,061, of which they will have to hit 45% in 4 years (11,356,677) and 80% in 8 years (20,189,649). If they were to cover the entirely, all five boroughs, of NYC using only small cells (something I'd say is impossible considering their current small cell density), they'd only be covering 32% of the population in the PEA. And this is with spectrum that only adds 300Mb/s per sector and will likely have only 50% the range of their current n41 equipment. Doesn't really seem worth it to me. I'm of the opinion that they're looking to hedge their bets in further EBS/BRS acquisition. 
    • These strand mounts also are deployed with Band 46 (LAA), in my experience. I have yet to encounter a strand mount with exclusively 2/66. 
  • Recently Browsing

    • No registered users viewing this page.
  • Create New...