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Sprint losses double in Q4 after brand writedown
2015-02-05 14:40:00| Telecompaper Headlines
(Telecompaper) US operator Sprint reported an operating loss of USD 2.54 billion for the fourth quarter, hurt by impairment charges to write down the value of its brand name and wireline assets. The net loss widen to USD 2.38 billion from USD 1.04 billion a year earlier. The operator's adjusted EBITDA fell by 10 percent year-on-year to USD 1.04 billion, as its turnaround efforts have yet to pay off in the mobile market. Revenues fell 2 percent to USD 8.97 billion, as growth in hardware sales offset a continued fall in mobile service revenues. Sprint managed a net gain of 30,000 postpaid customers in the quarter, but postpaid churn continued to increase as well, to 2.30 percent under the Sprint brand from 2.18 percent in the third quarter. Postpaid ARPU also declined due to intense promotional activity, dropping to USD 58.90 from USD 60.58 in the previous quarter. Sprint also added 410,000 prepaid users and 527,000 wholesale Sims in Q4, to finish the year with a total 55.93 million customers, up from 53.35 million a year earlier. Sprint CEO Marcelo Claure said the company was pleased with the higher sales and improving mix of the customer base, but it "still had a long way to go" to turning around results and especially reducing churn to competitive levels.
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Category:Telecommunications