Sprint Losses Mount on 4G Upgrades & iPhones
The operator said Wednesday morning that the loss "includes depreciation of approximately $543 million ... primarily due to accelerated depreciation related to the expected shut down of the Nextel platform." The results also include a one-time net benefit of $170 million related to Sprint ending its spectrum-hosting deal with LightSquared . (See Sprint Scuttles LightSquared Deal .)
The company said it sold 1.5 million iPhones in the quarter. This resulted in increased wireless equipment net subsidies of approximately $1.6 billion compared with about $1.1 billion in the year-ago period, and roughly $1.7 billion in the fourth quarter of 2011.
Sprint recorded a first-quarter diluted net loss of 29 cents per share on revenues of $8.73 billion. This compares to a net loss of $439 million and a diluted net loss of 15 cents per share, on revenues of $8.31 billion, in the first quarter of 2011.
Analysts polled by Bloomberg had been expecting worse: They were anticipating a loss of 41 cents per share on revenues of $8.7 billion.
— Dan Jones, Site Editor, Light Reading Mobile