Sprint Loses $1.6 Billion, Loses Nextel Subscribers
Today Sprint Corporation released its first quarterly report since its acquisition by SoftBank. The U.S. mobile provider posted a massive $1.6 billion net loss during the second quarter of 2013, while the company’s revenue during the quarter dropped slightly to just over $845 million. One of the few bright spots of the report includes an 8% rise in Sprint’s wireless service revenue to $7.2 billion.
Sprint also lost over 2.7 million subscribers during the second quarter. Much of the subscriber loss was due to the Nextel platform officially shutting down on June 30. Though Sprint was able to convert over 4 million Nextel subscribers to Sprint network subscribers, the company was only able to convince 34% of Nextel subscribers to do so.
Sprint chalked up much of its losses during the quarter to the shutdown of Nextel. The company also closed several large business dealings during the quarter, including the acquisition of Clearwire for around $14 billion and a $21.6 billion merger with Softbank.
“This is a historic time for Sprint,” said Dan Hesse, Sprint CEO. “We recently shut down the Nextel platform and completed the Clearwire, SoftBank and U.S. Cellular transactions. In the second quarter, we achieved record levels in Sprint platform postpaid subscribers, service revenue and postpaid ARPU, and increased our 4G LTE footprint. Sprint pioneered unlimited voice, text and data in 2008, and we recently introduced the first lifetime guarantee, solidifying our commitment to the simplicity and peace of mind that unlimited brings.”