Sprint reported Q1 wireless service revenues of $7.2 billion, an increase of more than 7 percent year-over-year, driven primarily by Sprint platform postpaid ARPU growth of $4.03. net loss of $863 million and a diluted net loss of $.29 per share for the first quarter of 2012. This compares to a net loss of $439 million and a diluted net loss of $.15 per share in the first quarter of 2011 and includes depreciation of approximately $543 million, or negative $.18 cents per share, primarily due to accelerated depreciation related to the expected shut down of the Nextel platform as well as a one time gain of $170 million from the terminated contract with LightSquared.
Sprint posted a net gain of nearly 1.1 million subscribers during the first quarter, bringing total ending subscribers to a record 56 million.
There were 1.5 million iPhone activations in Q1, of which 44 percent were new customers.
The total number of customers on the Sprint platform grew almost 4 percent sequentially including 263,000 postpaid net subscriber additions, 870,000 prepaid net subscriber additions and 785,000 wholesale and affiliate net subscriber additions.
Approximately 46 percent of total subscribers that left the postpaid Nextel platform during the period were retained on the Sprint postpaid platform as compared to 27 percent in the first quarter of 2011 and 39 percent in the fourth quarter of 2011.
The company provided the following updated on Network Vision:
- Approximately 600 Network Vision sites are now on air. These are meeting speed and coverage enhancement targets.
- Zoning requirements are completed for approximately 9,700 sites and leasing agreements have been completed for close to 7,700 sites.
- More than 3,200 sites are in notice to proceed status and work has started on approximately 3,000.
- Sprint expects to bring approximately 12,000 sites on air by the end of 2012 and to complete the majority of its Network Vision roll-out in 2013.
- Approximately 1,300 iDEN sites have been taken off air to date. Sprint expects to shut down a total of 9,600 before the end of the third quarter.
- Sprint expects to launch 4G LTE in six major cities by mid-year 2012 including Houston, Dallas, San Antonio, Atlanta, Kansas City and Baltimore.
- CAPEX was $800 million in Q1, compared to $555 million in the first quarter of 2011 and $900 million in the fourth quarter of 2011. Wireless capital expenditures were $710 million in the first quarter of 2012, compared to $449 million in the first quarter of 2011 and $774 million in the fourth quarter of 2011.
