Sprint's Operating Loss Widens to $2.5B in Q3
OVERLAND PARK, Kan. -- Sprint Corporation (NYSE: S) today reported operating results for the third fiscal quarter of 2014, including adding nearly 1 million Sprint platform connections – a 42 percent increase year-over-year – as customers responded positively to the company’s new value proposition. The company also reported consolidated net operating revenues of $9 billion, an operating loss of $2.5 billion, which included non-cash charges of $2.1 billion, and Adjusted EBITDA* of $1.04 billion.
New Offers Lead to Sales Growth and Higher Value Customers
Sprint continues to launch simple, straightforward offers designed to save customers money. During the quarter, Sprint offered to cut rate plans in half for AT&T and Verizon customers, expanded the industry-first leasing plan for iPhone® to additional devices and lease terms, and launched the new Data Boost plans on Boost Mobile. These actions, among others, resulted in improvement in Sprint platform sales.
- Highest postpaid gross additions in three years
- Highest postpaid upgrade rate on record at 11.5 percent illustrating a recommitment from existing customers
- Highest prepaid gross additions with nearly 30 percent year-over-year growth
This growth was accompanied by a simultaneous improvement in the quality of sales during the quarter.
- Highest percentage of prime credit quality postpaid gross additions on record
- Postpaid phone gross additions grew 20 percent year-over-year
- New consumer account gross additions with three or more lines more than doubled from the year-ago period
Sprint Platform Adds Nearly 1 Million Connections
- Sprint platform net additions were 967,000 compared to 590,000 in the prior quarter and 682,000 in the prior year quarter.
- Postpaid net additions of 30,000 increased by 302,000 sequentially and decreased by 28,000 year-over-year. Postpaid phone losses of 205,000 improved by 295,000 sequentially and 202,000 year-over-year, as higher prime credit quality gross additions were partially offset by higher churn. Device financing options accounted for 46 percent of postpaid sales in the quarter, compared to 27 percent in the prior quarter and 7 percent in the year-ago period.
- Prepaid net additions of 410,000 were up 88,000 year-over-year due to growth in the Boost brand.
- Wholesale net additions of 527,000 were up 225,000 from the prior year quarter, mostly driven by connected devices.
- Sprint had 55.9 million total connections at the end of the quarter.
Sprint Corp. (NYSE: S)