Sprint Nextel 3Q08 results

Publié le par Jean Arnal

Sprint reported 3Q08 results with revenues in the quarter amounting to $8.8bn (down 12%), with OIBDA down 37% to $1.8bn and a net loss of $326m, vs a profit of 64m. For the 9-mo results, the picture is about the same: revenues are down 10% to $27.2bn, OIBDA is down 29% to $5.9bn and net loss amounts to $1.2bn. The decline in revenues (mainly subscriber losses) induces higher costs of service. Sprint serves 50.5m subscribers (down 6.5%) with a loss of 1.3m in the quarter. The breakdown is as follows: 35.4m subs are CDMA, 13.5m are iDEN and 1.6m are Power Source. Mobile revenues were $6.8m (-13%) and wireline revenues were $1.6bn (down 2%), of which internet revenues grew by 37% to $550m. Mobile OIBDA decreased by 37% to $1.6bn and wireline OIBDA declined by 9% to $263m. The mobile unit reported an operating loss of $250m for the quarter, vs an income of $514m, and of 645m for the 9-mo period vs an income of 1.2bn. The wireline business reported an operating income of $120m (-24%) for the quarter and of $436m (+20%) for the 9-mo period. In the economic slowdown, Sprint reiterates its commitment to iDEN network, but the merger of its Xohm XIMAX network with Clearwire was approved by the FCC. This has not prevented the stock price to be down 12% on the news.

Publié dans Top stories

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