Sprint Corporation (S) - NYSE
  • Nov. 4, 2014, 4:35 AM
    • Troubles at Sprint (NYSE:S) has forced SoftBank (OTCPK:SFTBY) to slash its operating profit forecast, which it now expects to be ¥900B ($7.9B) in the 12 months through March 2015, 10% down from the ¥1T profit it previously estimated.
    • The warning came as SoftBank reported that its second-quarter operating profit fell 23%.
    • Yesterday, Sprint slashed its full-year adjusted EBITDA guidance to $5.8B-$5.9B from $6.7B-$6.9B and announced that it was cutting another 2K jobs.
    | Nov. 4, 2014, 4:35 AM
  • Nov. 3, 2014, 5:13 PM
    • Along with its FQ2 results, Sprint (NYSE:S) announces it's cutting another 2K jobs, and is "targeting $1.5 billion of annualized cost reductions compared to 2014 spending levels." The carrier announced a month ago it's launching a new "workforce reduction plan;" its headcount is around 36K.
    • Sprint has also slashed its full-year capex guidance by ~$1B to less than $6B; it announced a cut of similar size three months ago. The company was previously (at SoftBank's urging) spending aggressively in an attempt to narrow Verizon/AT&T's 4G coverage leads.
    • Though its FQ2 numbers are generally downbeat, Sprint asserts the price cuts and promos launched since Marcelo Claure took over as CEO are bearing fruit. Postpaid phone gross adds rose Y/Y in September, the first time they did so in 2014 - the iPhone 6 launch likely helped. Sprint also claims its postpaid phone net losses fell by 60% during the month.
    • S -6.5% AH. FQ2 results, guidance/details
    | Nov. 3, 2014, 5:13 PM | 7 Comments
  • Nov. 3, 2014, 4:30 PM
    • Not counting transactions, Sprint (NYSE:S) lost 272K postpaid subs in FQ2, lowering its total base to 29.5M. The loss is bigger than FQ1's 181K, and points to further share loss to T-Mobile, Verizon, and AT&T.
    • 35K prepaid subs were added, a turnaround from FQ1's 542K decline. The base stands at 14.8M. Wholesale/affiliate net adds totaled 827K, better than FQ1's 530K and growing the base to 9.7M.
    • Postpaid phone net losses totaled 500K, more than offsetting 261K (lower-ARPU) tablet net adds. Other device net losses amounted to 33K. Postpaid churn was 2.18%, up from 2.05% in Q2 and 1.99% a year ago. ARPU fell to $60.58 from $62.07 in Q2 and $64.24.
    • Wireless service revenue fell 5% Y/Y to $6.76B. Equipment revenue rose 46% to $1.04B. With the help of cost cuts, adjusted EBITDA margin rose 180 bps to 18.6%, driving a 14% increase in wireless adjusted EBITDA to $1.37B.
    • Wireline revenue fell 19% Y/Y to $708M. The segment had just $27M in adjusted EBITDA.
    • Sprint (S) has slashed its full-year adjusted EBITDA guidance to $5.8B-$5.9B from $6.7B-$6.9B. The carrier cites both postpaid phone customer losses and (amid rising promotional activity) "increased selling costs." Net debt totaled $27B at quarter's end.
    • The selloff Sprint has seen since its FQ1 report appears to be limiting Sprint's post-earnings decline.
    • FQ2 results, PR
    | Nov. 3, 2014, 4:30 PM
  • Nov. 3, 2014, 4:06 PM
    • Sprint (NYSE:S): FQ2 EPS of -$0.19 misses by $0.13.
    • Revenue of $8.5B (+9.7% Y/Y)
    • Shares -7.9%.
    | Nov. 3, 2014, 4:06 PM | 6 Comments
  • Nov. 2, 2014, 5:30 PM
  • Jul. 30, 2014, 9:48 AM
    • The Sprint (S +1.2%) platform lost 181K postpaid subs and 542K prepaid subs in Q2, compared with losses of 231K and 364K in Q1. After factoring Nextel declines, total retail postpaid and prepaid losses were respectively 245K and 619K. 530K wholesale/affiliate subs were added.
    • Verizon and AT&T have delivered much better Q2 subscriber add figures (moreso for postpaid than prepaid), and would-be merger partner T-Mobile is expected to tomorrow.
    • However, cost controls allowed Sprint's adjusted EBITDA to rise 30% Y/Y to $1.83B (a faster growth rate than Q1's 22%), and adjusted EBITDA margin rose to 23.8% from 17.4% a year ago. Capex fell to $1.25B from $1.49B in Q1 and $1.58B a year ago. Free cash flow was still -$496M.
    • Wireless service revenue fell 4% Y/Y to $7.09B. Sprint platform postpaid churn was 2.05% vs. 2.11% in Q1 and 1.83% a year ago; prepaid churn was 4.44% vs. 4.33% in Q1 and 5.22% a year ago.
    • Wireline revenue fell 18% to $746M, a decline worse than Q1's 14%. Wireline adjusted EBITDA margin declined to 4.7% from 14.2% a year ago.
    • On the CC, CEO Dan Hesse confirmed Sprint is testing new plans ahead of the iPhone 6 launch and the holiday season.
    • Full-year adjusted EBITDA guidance of $6.7B-$6.9B has been reiterated. However, capex guidance has been cut by ~$1B to less than $7B.
    • Q2 results, PR
    | Jul. 30, 2014, 9:48 AM | 9 Comments
  • Jul. 30, 2014, 7:34 AM
    • Sprint (NYSE:S): FQ1 EPS of $0.01 beats by $0.05.
    • Revenue of $8.78B (-1.0% Y/Y) beats by $90M.
    | Jul. 30, 2014, 7:34 AM
  • Jul. 22, 2014, 5:35 PM
  • May 1, 2014, 8:01 AM
    • Thanks to aggressive pricing and a slew of promotions, T-Mobile (TMUS) added 1.3M branded postpaid subs (1.2M phone subs), 465K branded prepaid subs, and 600K non-branded subs in Q1. The branded postpaid figure dwarfs Verizon's (VZ) 539K and AT&T's (T) 625K - the difference in phone adds is even larger - and compares with a net loss of 333K for would-be suitor Sprint (S).
    • Regulators mulling a Sprint/T-Mobile tie-up are doubtlessly paying attention, and the same goes for AT&T and Verizon: The former has responded more aggressively to T-Mobile's price cuts thus far than the latter.
    • Thanks to the strong Q1 numbers, which come after T-Mobile added 1.645M total subs (869K branded postpaid) in Q4, the carrier now expects 2.8M-3.3M branded postpaid net adds in 2014, up from a prior 2M-3M. Cash capex is still expected to be in a range of $4.3B-$4.6B.
    • At the same time, T-Mobile's strategy continues taking a near-term toll on its bottom line: Adjusted EBITDA fell 26% Y/Y to $1.09B, and T-Mobile has cut its full-year adjusted EBITDA guidance to $5.6B-$5.8B from $5.7B-$6B. Adjusted EBITDA margin fell 400 bps Q/Q to 20%.
    • Service revenue rose 4.5% Y/Y to $5.34B. Branded postpaid churn fell 20 bps Q/Q and 40 bps Y/Y to 1.5% (a new record). ARPU fell $0.69 Q/Q to $50.01. "Simple free cash flow" (adjusted EBITDA - cash capex) was $141M, down from $357M in Q4 and $239M a year ago.
    • TMUS +7.6% thanks to the sub adds and a Bloomberg report stating Sprint has lined up financing for a bid. Sprint +6.2%. T-Mobile parent Deutsche Telekom (DTEGY) is up 2.9% in Frankfurt.
    | May 1, 2014, 8:01 AM
  • Apr. 29, 2014, 8:21 AM
    • After respectively squeezing out postpaid and prepaid sub gains of 58K and 322K in seasonally strong Q4, the Sprint (S) platform respectively lost 231K postpaid and 364K prepaid subs in Q1. After factoring legacy Nextel platform losses, Sprint's total retail postpaid and prepaid losses amounted to 333K and 415K.
    • Those figures more than offset 281K wholesale/affiliate net adds, and point to additional share loss to Verizon, AT&T, and T-Mobile as Sprint continues pulling out all the stops to expand its 4G LTE coverage amid growing price competition. Sprint ended Q1 with 54.9M subs (30.5M retail postpaid).
    • Nonetheless, thanks in part to job cuts, adjusted EBITDA rose 22% Y/Y to $1.84B, and adjusted EBITDA margin to 23.4% from 14.5% in Q4 and 18.9% a year ago. A hefty $1.49B was spent on capex, leading free cash flow to total -$1.12B in spite of op. cash flow of $522M.
    • Wireless service revenue fell slightly Y/Y to $7.26B. Sprint platform postpaid churn rose to 2.11% from 1.84% a year ago, and Sprint platform prepaid churn to 4.33% from 3.05%. Postpaid ARPU was $63.52 vs. $64.11 in Q4 and $63.67 a year ago.
    • Wireline revenue fell another 14% to $770M due to Internet weakness, and wireline adjusted EBITDA margin fell to a mere 1.6% from 14.3% a year ago.
    • Sprint is upping its 2014 adjusted EBITDA guidance range by $200M to $6.7B-$6.9B.
    • Q1 results, PR
    | Apr. 29, 2014, 8:21 AM
  • Apr. 29, 2014, 7:02 AM
    • Sprint (S): Q1 EPS of -$0.04 beats by $0.03.
    | Apr. 29, 2014, 7:02 AM | 1 Comment
  • Apr. 24, 2014, 10:10 AM
    • Verizon (VZ -2%) had only 539K wireless postpaid net adds in Q1 (549K total), down from 677K a year ago (720K total) and for once below AT&T's quarterly postpaid figure of 625K. Also, retail churn rose 7 bps Y/Y to 1.37%, and retail postpaid churn 6 bps to 1.07%.
    • Those figures raise the question of whether Verizon's commitment to a premium pricing strategy in the face of a T-Mobile-launched price war is impacting subscriber adds.
    • Nonetheless, wireless service revenue grew 7.5% Y/Y, nearly even with Q4's 8% and much better than AT&T's 2.2%. Wireless op. margin rose 210 bps to 35%, and retail postpaid ARPA 6.3% to $159.67. Verizon ended Q1 with 103.3M retail connections (97.3M postpaid).
    • Wireline revenue fell 0.4%, as 4.4% and 6.4% declines in enterprise and wholesale revenue (caused in part by voice weakness) offset a 6.2% increase in consumer retail (driven by 15.5% FiOS growth). Wireline op. margin rose 10 bps to 1.5%.
    • 98K and 57K FiOS Internet and TV subs were respectively added, down from 126K and 96K in Q4. Total broadband connections (FiOS or otherwise) rose 1.5% to 9M.
    • Q1 free cash flow was $3.93B, below net income of $5.99B but above illustrative net income of $3.8B. Verizon is still expecting 4% 2014 revenue and EBITDA growth. Its dividend yield stands at 4.6%.
    • Sprint (S -3.2%) and T-Mobile (TMUS -2%) are following Verizon lower. They fell yesterday in the wake of AT&T's report. Sprint reports on April 29
    • Q1 results, PR,
    | Apr. 24, 2014, 10:10 AM | 1 Comment
  • Apr. 23, 2014, 12:10 AM
  • Apr. 22, 2014, 5:35 PM
  • Feb. 11, 2014, 9:34 AM
    • Sprint (S +7.2%) saw a net gain of 682K mobile platform subs in seasonally strong Q4 - 58K postpaid, 322K prepaid, 302K wholesale/affiliate. Though that figure is well below Verizon and T-Mobile's Q4 net adds, and moderately below AT&T's, it represents a turnaround from Q3's 95K net loss (includes a loss 360K postpaid subs).
    • The #3 U.S. carrier is also guiding for 2014 adjusted EBITDA of $6.5B-$6.7B, up from a 2013 level of $5.4B and a 2012 level of $4.8B. Q4 adjusted EBITDA margin was 14.5%, up from the year-ago period's 10.3%.
    • Mobile service revenue rose 2% Y/Y to $7.15B, equipment revenue (phone/tablet sales) rose 15% to $1.16B. SG&A spend was nearly flat at $2.44B.
    • Postpaid ARPU was $64.11, down slightly from $64.24 in Q3 and $64.17 a year ago. Postpaid churn rose to 2.07% from 1.99% in Q3 and 1.98% a year ago.
    • Sprint's wireline division saw revenue drop 9% to $859M. Its op. income fell to $23M from $71M.
    • With parent SoftBank (SFTBF) willing to spend aggressively to improve Sprint's 4G coverage, Sprint has set a 2014 capex budget of $8B, up from a 2013 level of $7.5B and a 2012 level of $5.4B.
    • Q4 results, PR
    | Feb. 11, 2014, 9:34 AM | 5 Comments
Company Description
Sprint Corp. operates as a communication company, which offers a comprehensive range of wireless and wire line communications products and services to consumers, businesses and government users. The company operates through two segments: Wireless and Wireline. The Wireless segment offers... More
Sector: Technology
Industry: Wireless Communications
Country: United States