Sprint reported consolidated net operating revenues of $8.9 billion for the third fiscal quarter of 2014, down 2 percent year-over-year.
The decline in revenue was attributed to the lower service revenue- mainly the wireless postpaid segment, which was mostly offset by higher equipment revenue.
However, this represents a slight increase from the second quarter revenue, which stood at $8.5 billion.
Total service revenue for the Sprint wireless platform during 3rd quarter was down to $6.6 billion, compared to $6.8 in the previous quarter. Year over year, wireless service revenue declined by 8.2 percent.
Wireless service revenue decline is attributed to the lower revenue from the postpaid connections. The telco had recorded $5.8 billion from postpaid connection in the corresponding quarter in 2013, whereas it stands at $5.2 million in the 3rd quarter of 2014.
However, Sprint reported 42 percent increase in sales year-over-year. Sprint platform net additions were 967,000 compared to 590,000 in the prior quarter and 682,000 in the prior year quarter.Operating loss for 3rd quarter was $2.5 billion compared to an operating loss of $576 million in the year-ago quarter, the company said.
Postpaid net additions of 30,000 increased by 302,000 sequentially and decreased by 28,000 year-over-year.
Prepaid net additions of 410,000 were up 88,000 year-over-year due to growth in the Boost brand.
Wholesale net additions of 527,000 were up 225,000 from the prior year quarter, mostly driven by connected devices.
Sprint had 55.9 million total connections at the end of the quarter.
“We are pleased with the growth in sales in the quarter and the improving quality of our customer base as we begin our turnaround plan,” said Sprint CEO Marcelo Claure. “However, we acknowledge there is a long way to go to reach our goals, including lowering our postpaid churn rates to competitive levels.”
“I am encouraged by the progress and improving trends in the Sprint business,” said Masayoshi Son, Sprint chairman. “Marcelo and his team have developed, and are executing against, a clear plan that will make Sprint more competitive and better positioned for long-term growth.”
Sprint announced a number of offers for consumers, including a half-rate plan for AT&T and Verizon customers. The company has added highest postpaid and prepaid gross additions during the quarter.
During the quarter, Sprint’s 800 MHz voice deployment reached nationwide availability, 4G LTE coverage expanded to cover 270 million people, and the 2.5 GHz 4G LTE deployment now covers 125 million people.
editor@telecomlead.com
