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Sprint Posts Loss In Q4, Despite Gaining More Postpaid Customers Than Verizon, AT&T

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Sprint recently released its latest earnings report for the fourth quarter of 2016 (technically, its fiscal third quarter), and the major wireless carrier managed to register 368,000 net additions in terms of postpaid phone customers, more than what Verizon Wireless and AT&T have recorded during the same quarter.

This marks the fourth consecutive quarter in which Sprint has bested the top two US carriers in postpaid phone adds. By doing so, Sprint also posted its best postpaid phone subscriber gains in four years. Unfortunately on the prepaid front, Sprint lost 501,000 prepaid net customers, which is a further sign that in the increasingly competitive prepaid market today, the carrier continues to struggle. Overall Sprint added 405,000 postpaid and 673,000 wholesale lines last quarter but lost 501,000 prepaid lines for a total gain of 577,000 lines of service last quarter.

With regards to customer turnover rate, postpaid phone churn has risen to 1.57 percent, while total postpaid churn is at 1.67 percent.

Sales-wise, its latest quarterly earnings report offers mixed results for Sprint. It earned $8.5 billion in net operating revenue, but posted a net loss of $479 million (or 12 cents per share). Still, the $479 million loss is an improvement over the $836 million it recorded during the same quarter last year, while the $8.5 billion revenue represents a growth of over 5 percent compared to the previous year’s. The net loss of 12 cents per share, however, is a worse mark compared to the 9 cents per share projected by analysts from Wall Street.

For fiscal year 2016, Sprint also reduced its capital expenditure guidance from less than $3 billion to a range of  between $2 billion to $2.3 billion. With lowered network spending, the carrier was able to cut $1.6 billion from its fiscal year budget.

Apart from sharing quarterly earnings-related information, Marcelo Claure, the chief executive officer of Sprint, also explained the reason behind Sprint’s recent move to buy a one-third stake in Tidal, the music streaming service owned by rap superstar Jay Z. According to Claure, the association with Tidal will grant Sprint the opportunity to continue exploring ways to deliver exclusive content to its subscribers through Tidal, not to mention gaining another means for attracting prospective customers, especially from the millennial demographic. As for Tidal, it can now tap into Sprint’s customer base, which numbers 45 million.


Source: ReCode

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15 comments:

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  1. No shocker here...

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  2. Can't turn around prepaid without BYOD

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    Replies
    1. CUT pre-paid operating costs - they are 3 times higher

      Sprint pre-paid
      Boost pre-paid
      Virgin -pre paid

      all selling the exact tower service overlapping every major city they cover.

      All 3 prepaid have different management, with 3 times the costs.

      Delete
    2. What they need to do is giving away so much phones and crap they clearly cannot afford

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    3. "What they need to do is giving away so much phones and crap they clearly cannot afford"

      Nobody in the industry gives away free phones. Nobody. If you're seeing any being given away, they are tied to something that makes Sprint money--like a contract or prepaid refills.

      Besides, given that Sprint is CDMA with pretty unique LTE bands (for the US,) they aren't exactly a target for free-phone-and-bail raids. Unless you go with the most expensive phones, you aren't going to find too many Sprint phones compatible with other carriers. Hell, Sprint phones aren't even necessarily inter-compatible with Sprint carriers.

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  3. If T,mobile buys them out,they have a chance. If they buy out Tmobile, they are both doomed.. lol

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    Replies
    1. lol, T-Mobile Can't even afford itself and you want them to buy out sprint. Sprint will likely buy T-Mobile and kill both brands...they have Softbank to bank them up

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    2. It as to be a reverse buyout, If Sprint buys T-Mobile you know John Legere will be CEO. Just look at what John Legere done to T-Mobile in 5 years time and look how the pre-paid game got affected. Verizon and AT&T prepaid was a joke back then but now it has a decent value.

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  4. Sprint suffers from Zeno's Paradox. No matter how much they improve they will never improve enough to be good enough. Google Zeno's Paradox. It should be called Sprint syndrome. It's where they can improve forever but will always be losers.

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  5. Their ridiculous roadblocks they put in front of their prospective customers is what will keep them bleeding out post and prepaid subscribers.
    I have never considered them an option. I have however tried the other three carriers.

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  6. Not a big surprise. They are one of the most "value" providers. Big Red, on the other hand, wants to suck everyone dry of $...

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  7. So, basically, you'll be getting free Tidal if you buy a Virgin phone and plan. Still not worth it.

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  8. Just remind their PP plan

    $55 for 6GB SPP
    $50 for 23GB BM
    $45 for 10GB VM

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  9. J.D. Power 2017 U.S. Wireless Customer Care Non-Contract Performance StudySM—Volume 1, both released today.http://www.jdpower.com/press-releases/jd-power-2017-us-wireless-customer-care-full-service-performance-study%E2%80%94volume-1-and

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  10. Tidal is just another in a long line of deals Sprint has made, which EVERYBODY outside the company sees as a huge mistake from the start, but goes ahead, regardless, and ends up being a big money looser for years.

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