Sprint (S) keeps getting smaller and smaller and its two larger competitors Verizon Wireless (VZ)(VOD) and AT&T (T) keep getting larger.
For the most recent quarter, Sprint’s revenue fell 12% to $8.2 billion. The company had a net loss of $594 million which included $327 million in severance. Sprint may need take its costs down ever further.
The company served 49.1 million customers at the end of the quarter, compared with 49.3 million at the end of 2008. For the quarter, total wireless customers declined by approximately 182,000, including net losses of 1.25 million post-paid customers. Sprint gained a net 764,000 prepaid iDEN customers and 394,000 wholesale and affiliate subscribers.
Perhaps the worst news the company had was that post-paid churn was 2.25% compared to 2.16% in the fourth quarter. Sprint said the economy paid a large role in the drop. Wireless service revenues for the quarter of $6.4 billion declined 10% year-over-year and 2% sequentially. The year-over-year decline and the sequential decline were due primarily to fewer wireless subscribers.
The company’s forecasts were vague. What Sprint did say was that it expects to continue to generate positive free cash flow during the remainder of 2009, aided by the growth of Boost Monthly Unlimited product.
Douglas A. McIntyre
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