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Sprint Corporation (S)

- NYSE
  • Tue, Feb. 10, 3:39 AM
    • SoftBank (OTCPK:SFTBY) reported a sharp drop in its profit for the October-December quarter this morning, weighed down by the continuing struggles at Sprint (NYSE:S), the U.S. mobile operator it acquired in 2013.
    • "Overall, SoftBank is doing well, but with Sprint...being in a tough situation, I think it will have a long battle to fight," said SoftBank's Chief Executive Masayoshi Son.
    • The telecommunications giant posted FQ3 net income of ¥32.3B ($272.3M), down from ¥93.8B a year earlier.
    | 3 Comments
  • Thu, Feb. 5, 8:57 AM
    • With losses continuing, eyes at Sprint (NYSE:S) were on its subscriber situation, as the company gets further along into aggressive promotions like "cut your bill in half."
    • Sprint (S) got back to postpaid subscriber growth in fiscal Q3 (as it previewed a month ago) with 30K net adds, postpaid gross adds were highest in three years -- and postpaid churn increased Q/Q to 2.3%.
    • Postpaid upgrade rate highest on record at 11.5%, "illustrating a recommitment from existing customers." As it had noted, prepaid net adds of 410K on the platform. Wholesale net adds of 527K up 225K from prior year, and mainly driven by connected devices.
    • As expected, postpaid ARPU of $58.90 is down -- both Y/Y (from $64.11) and sequentially (from $60.58). Prepaid ARPU of $27.12 is down sequentially (from $27.19) but up from prior year's $26.78.
    • Free cash flow at -$1.83B, compared to prior year's -$2.84B.
    • Adjusted EBITDA Margin was up Y/Y at 15.4% compared to 14.4%, but down from Q3's 19.9%. Adjusted EBITDA was $1.03B.
    • The network is coming along: LTE coverage reached over 270M people -- 125M covered by 2.5 GHz deployment, and 800 MHz voice deployed nationwide.
    • Shares now down 2% premarket.
    • Press Release
    | 10 Comments
  • Thu, Feb. 5, 7:35 AM
    • Sprint (NYSE:S): FQ3 EPS of -$0.60
    • Revenue of $8.97B (-1.9% Y/Y)
    • Shares +2.8% PM.
    • Press Release
    | 10 Comments
  • Wed, Feb. 4, 5:30 PM
  • Thu, Jan. 8, 1:07 AM
    • Sprint (NYSE:S) pre-announces it had 30K postpaid net subscriber adds in FQ3 (calendar Q4). That's a marked improvement from an FQ2 net loss of 272K subs, and no doubt has much to do with Sprint's aggressive promotions during the Marcelo Claure era.
    • Postpaid phone net adds are apparently still negative, but Sprint says they "nearly" turned positive in December. Meanwhile, take rates for Sprint's (subsidy-eliminating) device financing plans rose to 50% during the month.
    • Prepaid net adds rose to 410K in FQ3 from just 35K in FQ2. Wholesale net adds fell to 527K from 827K. Sprint says it had "the highest number of postpaid gross additions in three years," and that postpaid phone gross adds rose 20% Y/Y.
    • Full FQ3 results are due in February. On Wednesday, top low-end rival T-Mobile reported 1.28M Q4 branded postpaid net adds (1.04M phone), and 266K branded prepaid net adds.
    | 7 Comments
  • 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.
    | Comment!
  • 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
    | 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
    | Comment!
  • 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%.
    • Press Release
    | 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
    | 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.
    • Press Release
    | Comment!
  • Jul. 29, 2014, 5:30 PM
  • 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.
    | Comment!
  • 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
    | Comment!
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Company Description
Sprint Corp is a communications company offering wireless and wireline communications products and services to individual consumers, businesses, government subscribers and resellers.