Alexa
  • Directory of Taiwan

Sprint Nextel swings to loss in 1st-quarter

Sprint Nextel swings to loss in 1st-quarter

Sprint Nextel Corp., the nation's third-largest wireless carrier, said Wednesday it swung to a first-quarter loss as bigger investments in infrastructure wiped out modest gains in sales and it lost high-quality subscribers.
For the January-March quarter, the Reston, Virginia-based company reported losing $211 million (euro155 million), or 7 cents per share, versus a profit available to common shareholders of $417 million, or 14 cents per share, a year ago.
Excluding one-time amortization charges, Sprint Nextel said it earned 18 cents per share, well under the 22 cents per share expected by analysts polled by Thomson Financial.
Revenues for the quarter rose slightly to $10.1 billion (euro7.42 billion) from $10.07 billion a year ago. Analysts had expected $10.31 billion (euro7.58 billion) in sales.
Gary Forsee, the company's chief executive and chairman, said the company spent a lot of money during the quarter trying to alleviate technological and signal problems that have driven away customers from its press-to-talk service.
"These increased commitments, along with notably higher device subsidies to drive acquisition and retention, impacted our profitability in the quarter," Forsee said in a release. "However, we are seeing some positive trade-offs in the form of enhanced competitiveness."
Sprint Nextel, which has its operational headquarters in Overland Park, Kansas, said it gained a net of 600,000 new wireless subscribers during the quarter, ending at 53.6 million. But it reported losing 220,000 customers who pay their bills at the end of the month and typically spend more.
It was the third straight quarter of losing postpaid customers.
Technological hurdles, continuing problems from the 2005 acquisition of Nextel Communications Inc. and a muddled marketing message have left the company far behind in the race for wireless subscribers. Its two largest competitors, AT&T's Cingular and Verizon Wireless, have reported first-quarter customer gains of 1.2 million and 1.7 million, respectively, many of them former Sprint Nextel subscribers.


Updated : 2021-06-16 22:30 GMT+08:00