Jump to content

Sprint's 4th Quarter Earnings


legion125
 Share

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?

 

http://www.reuters.com/article/2012/02/08/us-sprint-idUSTRE8170UH20120208

 

 

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.

Guest
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.

 Share

  • large.unreadcontent.png.6ef00db54e758d06

  • gallery_1_23_9202.png

  • Posts

    • The Kendall/Kerr/Gillespie PCS swap is a very nice win-win for AT&T and T-Mobile. Means both of them will have a 20x20 PCS channel, though in exchange T-Mobile goes from 10x10 to 5x5 on one of their spectrum blocks. I figure AT&T will start running n2 DSS on that channel, as they have enough customers in those areas to need the capacity, while T-Mobile will probably just run B2 LTE, as once Auction 108 finally clears they'll have plenty of n41 to play with. Guessing we'll see the non-G-block 5x5 slice running n25, but it would get aggregated with n71 rather than n41 I figure as n71 will remain 20x20 there until the STA goes away (and maybe after that, as if T-Mobile gets 700 MHz as the result of VZW buying West Central Wireless's spectrum there's no reason to run LTE in 600). Which makes me think that the next move is T-Mobile trading 700A for the 5x5 of orphaned PCS (E block) to VZW once the WCW transaction closes, as that would give VZW 20x20 PCS in the area, and would give T-Mobile 700 MHz in an area where they have none. Then VZW can either trade 700B to T-Mobile as well in exchange for the AWS I block in those areas (gives T-Mobile 10x10 B12, gives VZW 15x15 B66) or they can cut a deal with AT&T to give AT&T 10x10 B12 (AT&T has the lower C block), but I'm not sure what that deal would be if trading like for like (vs. AT&T handing VZW their upper tiny slice of B5, giving VZW 15x15 to play with in that band post-WCW-acquisition). EDIT: Just looked at AWS spectrum again, and if AT&T would rather have 10x10 B12 than 2x 10x10 AWS, they could swap AWS-D for VZW's 700B block. That would give VZW 20x20 AWS, and would take AT&T down to 10x10 + 5x5...which they'd likely be fine with as they have 20x20 PCS, small cells in the busy areas, and as a result of the transaction three 10x10 chunks of spectrum in the area below 1 GHz. And if VZW traded 700A to T-Mobile for PCS-E VZW would have 20x20 PCS as well. Which is quite useful in an area that's macro-only for VZW and likely not dense enough for proper mobile usage of CBRS or C-Band (and an area where VZW doesn't even run DSS now).
    • Yeah, $250 credit for an S22 is awful. tbf last year they didn't have solid upgrade credits until mid-late April, which is when I paid $225 to swap my S21 for an S22. Happy to wait 'til then for that kind of deal, though I'll be annoyed at battery life in the mean time.
    • Miserable upgrade credits from Samsung this year unless you want to rely on carrier financing. Sticking with S22U for a while. 
    • So far we've documented close to 100 Sprint conversions in NYC with permits still rolling in and that's only what we've identified manually. Tons of sites get converted/updated without permits so there's potentially a lot more that we haven't spotted yet. There are also dozens of sites that are still broadcasting the keep PLMN, some have been decommissioned but historically the vast majority have been converted.
  • Recently Browsing

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