Sprint Earnings: Nextel Closing Costed Company Big Bucks
Sprint Corp. (NYSE:S) posted earnings this morning that showed the company suffered in the quarter from costs and the customers lost through shutting down the Nextel platform, but Sprint’s wireless service revenue reached a record high, growing 8 percent to $7.2 billion.
Earnings per share fell below analyst estimates. Sprint posted a loss of 53 cents, down from a loss of 46 cents in the second quarter of 2012. Analysts had been expecting the company to lose just 30 cents for the quarter. A depreciation of $430 million plus costs related to shutting down Nextel caused the loss.
Net loss grew from $1.4 billion a year ago to $1.6 billion for this quarter. But the company beat expectations for revenue, which grew 0.38 percent to $8.88 billion, up from analyst expectations of $8.69 billion. Despite a postpaid Nextel recapture rate of 34 percent, Sprint still lost 1.05 million contract subscribers through the closing of Nextel. That’s up from a loss of 246,000 year-over-year. It cost the company $623 million to shut down Nextel.