Based on its latest quarterly earnings report, Sprint has also displayed marked improvements in several key areas. Its total net operating revenues for the most recent quarter amounted to $8.25 billion, up 3 percent year over year. Its wireless net operating revenues also increased 5 percent to $7.85 billion. With regards to customer turnover, the mobile operator also decreased its churn rate to 1.37 percent, which is down 12 basis points compared to the rate recorded in the second quarter of this year.
Sprint’s decision to aggressively promote a deal that offers to reduce customers’ bills in half may have paid off handsomely. During the third quarter of this year, the wireless carrier posted net postpaid phone additions of 173,000. Still, the company continues to suffer in prepaid -- the latest quarterly report has Sprint register a net loss of 427,000 prepaid mobile users. Sprint originally planned to relaunch its Virgin Mobile prepaid arm later this year, but has since decided to push back the relaunch to early 2017, which could mean that for the final quarter of this year, the carrier may continue to struggle when it comes to luring prepaid customers.
Despite the fact that Sprint has shown some improvement as far as its financials are concerned, industry watchers have pointed out that its average revenue per user (ARPU) has decreased 6 percent to $58.03, compared to the 5.7 percent decline recorded during the third quarter of last year. Because of this, the carrier’s wireless service revenues dropped 6.3 percent to $6.02 billion. However, that still represents an improvement over the 6.9 percent decrease reported in the previous quarter and the 7.2 percent drop registered in the first quarter of this year.
Source: Fierce Wireless