The USA based Sprint Nextel has reported a first-quarter loss of US$865 million on revenues that were down by 2% at US$8.1 billion. The net loss of US$865 million was 46% larger than the US$594 million a year ago, but was impacted by one-off costs. Sprint also lost a total of 75,000 net subscribers in the quarter.
The year-over-year decline in revenues is primarily due to lower contributions from post-paid wireless service revenues and wireline revenues, partially offset by increases from fourth quarter acquisitions, prepaid Boost Mobile service revenues and total equipment revenues.
"Sprint's first quarter results, including increased net operating revenues and significant year-over-year net post-paid subscriber improvements show we continue to make progress in improving the business," said Dan Hesse, Sprint Nextel CEO.
Capital expenditures were $419 million in the quarter, compared to $291 million in the first quarter of 2009 and $554 million in the fourth quarter of 2009. The 44% year-over-year increase was due primarily to additional wireless spending.
The company served 48.1 million customers at the end of the first quarter of 2010. This includes 33.4 million post-paid subscribers (26 million on CDMA, 6.8 million on iDEN, and 607,000 Power Source users who utilize both networks), 11 million prepaid subscribers (5.7 million on iDEN and 5.3 million on CDMA) and approximately 3.6 million wholesale and affiliate subscribers, all of whom utilize our CDMA network.
Sprint Nextel expects that both post-paid and total subscriber losses will improve in 2010, as compared to 2009. The company still expects full-year capital expenditures in 2010 to be up to $2 billion. In addition, the company expects to continue to generate positive Free Cash Flow during the remainder of 2010.
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