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.