Sprint's CEO Expects M&A-Related Announcement 'Soon'
Sprint's CEO says he expects an announcement will be "coming soon" after the carrier's many discussions about its potential M&A options, which was one of the main topics of analysts' questions on Sprint's first-quarter financial year 2017 earnings call.
Sprint Corp. (NYSE: S)'s Marcello Claure said Tuesday morning that the carrier had plenty of "strategic" options regarding M&A. "We've been having a lot of discussions," he said. Claure stressed, however, that Sprint would not be announcing any deal on the earnings call.
"We think an announcement will be coming in the near future," Claure said, adding that this would likely be a "vertical" or "horizontal" integration with one of the potential partners that Sprint is talking to. (See Charter Rebuffs Sprint, Still a SoftBank Target?)
"We've been going at this since the spectrum auction ended," Claure said.
He did say he was surprised by some of the reports around a potential tie-up with Charter Communications Inc. . "Sprint was never offered for Charter to buy; it was part of a bigger offer," he said on the call. (See Sprint Proposes Merger With Charter – Report.)
Most of the rumors around a Sprint merger so far have centered around Charter or T-Mobile US Inc. The CEO, however, repeatedly said that Sprint has a lot of potential options.
For the first quarter of its 2017 fiscal year, Sprint reported its first profit in three years. Net income was $206 million -- or $0.05 per share -- compared to a loss of $302 million -- or $0.08 EPS a year ago. Revenue for the quarter was $8.16 billion, up from $8.01 billion last year. Sprint added 61,000 total customers for the quarter.
Sprint's shares are up at $8.45 -- a 5.89% climb -- in morning trading Tuesday.
— Dan Jones, Mobile Editor, Light Reading