The ongoing revival of Sprint — under the aegis of CEO Marcelo Claure — is set to fetch results soon considering the financial result announced today.
Telecom network operator Sprint Corporation, a part of SoftBank, Japan, today announced the financial result for the third fiscal quarter of 2015 – indicating that a profit is not too far for the wireless operator.
What Sprint gained
# net additions of 366,000
# postpaid churn of 1.62 percent
# operating revenue of $8.1 billion (-10 percent)
# operating loss of $197 million ($2.5 billion)
Sprint CEO Marcelo Claure said: “Revenue has stabilized, costs are coming out faster than expected, postpaid phone net additions were the highest in three years, postpaid churn was the lowest-ever for a third quarter, and the network is performing at best-ever levels.”
Sprint has realized a nearly $500 million reduction in cost of service and selling, general, and administrative expenses in the third quarter.
Operating revenues of Spring decreased 10 percent to $8.1 billion — primarily due to customer shifts to rate plans associated with device financing options, and lower equipment revenues due to a shift from installment billing and subsidized sales.
Wireless service revenues plus installment plan billings and lease revenue increased one percent to $7.1 billion.
Sprint posted operating loss of $197 million included $209 million of severance and exit costs and compared to an operating loss of $2.5 billion in the year-ago quarter, an improvement of approximately $2.3 billion.
Sprint recorded net loss of $836 million compared to a net loss of $2.4 billion.
The company has deployed its LTE Plus Network in more than 150 major markets across the country and has plans for expansion in the coming months.
Sprint said it will be making an investment of $5 billion during the current financial year.
The main concern for Sprint will be the 10 percent drop in revenue in Q3 fiscal 2015-16. The price war among Sprint, T-Mobile, AT&T and Verizon, does not offer enough room for Sprint to regain its market share in the American data market.
The company, according to investments being planned and achievements in 4G network speeds, is indicating that Sprint CEO Marcelo Claure is on the revival path.