Sprint Revenue Up for the First Time in 3 Years
United States’ third wireless carrier, Sprint Nextel Corporation has reported a revenue growth for the last quarter. This surprising increase was the first in three years. The company linked this positive trend to the improvement they have implemented in their prepaid service. The continuous surge of number of prepaid subscribers pushed the revenue up for the 3rd quarter of 2010. The overall revenue was seen at $8.15 billion; 1% gain compared to previous year’s $8.04 billion.
However, the company posted a greater net loss compared to last year’s performance of the same period. They have attributed this to large tax benefits. Last year, within the same period, quarterly loss was at 17 cents per share. Today, it is at $911 million or 30 cents per share.
This telecommunication company based in Overland Park, Kansas turned the tables around with 644,000 added subscribers in their current roster. This is indeed a great recovery when Sprint lost more than half a million subscribers the same period in 2009. The ending number of Sprint subscribers was pegged at 48.8 million.
Its acquisition of Nextel was regarded as the worst in history. This news came just in time for the company’s goal to keep up with the giants like AT&T and Verizon Wireless.
“Although our momentum continues, we realize we have much progress still to make,” Sprint CEO Dan Hesse stated during a post-conference call. “We’re in a hypercompetitive industry with strong, capable competitors, so making continued progress is hard work. But we intend to persevere.”
Sprint’s taken to Android’s platform lately, attracting new customers for its specialized phones, and some additional product releases in the works. Being a leader in the 4G network push has also enabled Sprint to bounce back. The carrier is also set to provide Samsung’s Galaxy Tab Android tablet, which will be the first widely distributed iPad competitor on the market.
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