Sprint gained a total of approximately 111,000 net subscribers in the quarter. The company cited steady demand for smartphones like HTC EVO 4G and BlackBerry Curve combined with its best ever postpaid churn of 1.85 percent for the positive net postpaid subscriber growth of 136,000 on the CDMA network and 285,000 for the Sprint brand. The company also posted its best ever year-over-year quarterly net postpaid subscriber loss improvement of 763,000. The company achieved its best year-over-year quarterly improvement in postpaid gross subscriber additions in more than five years.
Sprint posted second quarter consolidated net operating revenues of approximately $8.0 billion, a net loss of $760 million and a diluted loss per share of 25 cents, which includes a non-cash $302 million (10-cent-per-share charge) increase in valuation allowance on deferred tax assets resulting from net operating loss carryforwards generated during the second quarter, for a pro forma diluted loss per share of 15 cents. The company generated $709 million of Free Cash Flow* in the quarter, and maintained a strong liquidity position with approximately $4.3 billion in cash and cash equivalents at the end of the quarter after retiring all 2010 note maturities of $750 million in the quarter.
“Our intense focus for the past ten quarters on improving the customer experience, strengthening our brands, and generating cash are paying off,” said Dan Hesse, Sprint Nextel CEO. “With strong cash flow, stable OIBDA and widespread third-party recognition for the improvements we’re making in the customer experience, which in turn strengthens our brands, we feel we can confidently improve our subscriber forecasts for the second half of 2010 and deliver positive total net wireless subscriber additions for the remainder of the year.”
Sprint 4G is now available in 43 markets serving approximately 51 million people. Its partner, Clearwire, expects coverage to reach up to 120 million people by the end of 2010 including deployments in Boston, New York, San Francisco and Washington, D.C.
http://www.sprint.com
