Sprintreportedits Q2 2013 s at 1am ET because it is now owned by Japanese Softbank. The carrier’s revenue was mostly flat and losses expanded. It did sell 1.4 million i, down slightly from 1.5 million i in the 1st quarter.Iconic Smart Paired With Unlimited Data Remain Differentiator
Eighty-six percent of quarterly Sprint platform postpaid handset sales were smart, including approximately 1.4 million i®sold during the quarter. Forty-one percent of iPhone sales were to new customers.For those with LTE, Sprintannounced41 new markets bringing its total to 151 total in the US including Philadelphia, Brooklyn and the Bronx in New York City and a host of others including Grand Rapids, Mich.; Jacksonville, Fla.; Nashville, Tenn.; Oakland, Calif.; and Portland, Ore. Press relse follows:
Sprint platform wireless service revenue incrsed 8 percent yr-over-yr to highest-ever of $7.2 billion. Best-ever Sprint platform postpaid ARPU of $64.20 and 11th consecutive quarter of yr-over-yr growthOperating Loss of $874 million, includes accelerated depreciation of approximately $430 million and noncash charges of $623 million related to the successful Nextel platform shutdown; Adjusted OIBDA* of $1.4 billion in spite of highest estimated Network Vision net dilution of any quarterNextel network shut down as scheduled on June 30; more than 4 million Nextel subscribers recaptured to the Sprint platform since Network Vision commenced in rly 2011, 44 percent postpaid recapture rateStrong progress on Network Vision deployment with more than 20,000 sites currently on air — up 50 percent from last quarterAll three transactions now closedSoftBank transaction brought an attractive cash premium to Sprint Nextel stockholders, $5 billion of cash contributions and improved operating scaleClrwire transaction expected to fully utilize and integrate complementary 2.5GHz spectrum assetsU.S. Cellular transaction adds spectrum that should significantly incrse Sprint’s network capacity and improve the customer experience in two marketsThe company’s second quarter 2013 rnings conference call will be held at 8 a.m. ET today. Participants may dial800-938-1120in the U.S. or Canada (706-634-7849internationally) and provide the following ID: 13175400 or may listen via the Internet atwww.sprint.com/investors.
Additional information about results can be found in the “Quarterly Investor Update” posted on our Investor Relations website atwww.sprint.com/investors.
OVERLAND PARK, Kan. (BUSINESS WIRE), July 30, 2013 -Sprint Corporation (NYSE: S)today reported Sprint Nextel’s second quarter 2013 results including record quarterly Sprint platform wireless service revenue of $7.2 billion and continued growth in Sprint platform postpaid subscribers. For the quarter, operating loss was $874 million and Adjusted OIBDA* was $1.4 billion as Sprint continued to make significant investments in the business.
“This is a historic time for Sprint. We recently shut down the Nextel platform and completed the Clrwire, SoftBank and U.S. Cellular transactions. In the second quarter, we achieved record levels in Sprint platform postpaid subscribers, service revenue and postpaid ARPU, and incrsed our 4G LTE footprint,” said Dan Hesse, Sprint CEO. “Sprint pioneered unlimited voice, text and data in 2008, and we recently introduced the first lifetime guarantee, solidifying our commitment to the simplicity and pce of mind that unlimited brings.”
Sprint Platform Again Achieves Record Revenue, ARPU and Subscribers
Sprint platform service revenue, postpaid ARPU and postpaid subscribers all rched best-ever levels in the second quarter. The Sprint platform had postpaid net additions for the 13th consecutive quarter and a postpaid Nextel recapture rate of 34 percent. Sprint platform postpaid ARPU grew yr-over-yr for the 11th consecutive quarter.
As expected, the Sprint platform lost prepaid customers as a result of planned des related to regulatory changes impacting the lower-ARPU Assurance brand. This was partially offset by strong Assurance gross additions and continued growth in both Virgin Mobile and Boost Mobile subscribers. Virgin Mobile gross additions improved 70 percent yr-over-yr.
Adjusted OIBDA* Relatively Flat Yr-Over-Yr Despite Higher Network Vision Dilution
Adjusted OIBDA* of $1.4 billion decrsed by 2 percent yr-over-yr primarily due to lower Nextel platform revenue, higher Network Vision dilution and slightly higher SG&A expenses offset by growth in Sprint platform service revenue.
EPS and Operating Loss Include Accelerated Depreciation, Nextel Shutdown Costs
Operating loss of $874 million, net loss of $1.6 billion and diluted net loss of $.53 per share for the quarter included, pre-tax, accelerated depreciation of approximately $430 million and noncash charges of $623 million related to the Nextel platform shutdown. For the second quarter of 2012, operating loss was $629 million, net loss was $1.4 billion and diluted net loss was $.46 per share including, pre-tax, accelerated depreciation of $782 million and noncash charges of $184 million related to the thinning of the Nextel platform. Net loss and diluted net loss in the yr-ago period also included a pre-tax impairment of $204 million related to Sprint’s investment in Clrwire.
Network Vision Momentum Continues with Nextel Platform Shutdown, More Than 20,000 Sites On Air
Sprint made strong progress on the Network Vision deployment in the quarter including the shutdown of the Nextel platform on June 30, which enables significant future improvement to Sprint’s cost structure. Over 4 million Nextel subscribers were recaptured to the Sprint platform since Network Vision commenced in rly 2011.
To date more than 20,000 Network Vision sites are on air compared to more than 13,500 reported with first quarter results. The of sites that are either rdy for construction, alrdy underway or completed has grown to more than 30,000.
As part of Network Vision, Sprint has launched 4G LTE in 151 cities, including Los Angeles, Dallas, Atlanta, Miami and Boston. Sprint expects to provide 200 million people with LTE by the end of 2013.
Iconic Smart Paired With Unlimited Data Remain Differentiator
Eighty-six percent of quarterly Sprint platform postpaid handset sales were smart, including approximately 1.4 million i®sold during the quarter. Forty-one percent of iPhone sales were to new customers.
In addition, Sprint launched other popular smart including Galaxy S®4 and One®during the quarter and rlier this month introduced ®8XT, Sprint’s first 8 smartphone. Also this month, Sprint launched the first three tri-band 4G LTE data devices, which are expected to bring customers improved network performance and stronger in-building coverage by providing access to Sprint’s 4G LTE network at 800 MHz, 1.9 GHz and 2.5 GHz where available.
In July, Sprint strengthened its unique pairing of an unbtable device portfolio with simplicity and value by launching The Sprint Unlimited GuaranteeSMthat offers customers unlimited talk, text and data while on the Sprint network, for the life of the line of service. The guarantee is for new and existing customers who sign up for Sprint’s new Unlimited, My WaySMplan or My All-inSMplans fturing unlimited talk, text and data while on the Sprint network for as little as $80 per month for the first line, with grter savings for additional lines. The guarantee will apply to customers as long as they remain on the plan, meet the terms and conditions of the plan and pay their bill in full and on time.
Third Parties Recognize Sprint’s Ldership
According to results from the 2013 American Customer Satisfaction Index (ACSI) relsed in May, Sprint is the most improved U.S. company in customer satisfaction, across all 47 industries studied, during the last five yrs. The ACSI also ranked Sprint No. 1 in delivering the best value among national wireless carriers. Among the study’s customer experience benchmarks, Sprint also ranked highest in bill rating and data plan choice.
Sprint VelocitySM, an end-to-end mobile integration solution developed specifically for auto manufacturers, received two us awards from Pipeline magazine’s 2013 COMET Innovations Awards program. Sprint was the service provider winner for Innovation in Connectivity and was runner-up in the Innovative Collaborations egory. In addition, Sprint Velocity won the Telematics Update Industry Newcomer Award.
The Environmental Investment Organisation named Sprint the highest ranking of all companies in the U.S. and No. 13 globally in its 2013 Environmental Tracking Carbon Rankings. Sprint was named a lder for North America and the continent’s highest ranked telecommuniions company.
Forecast
On a stand-alone basis, Sprint would be incrsing its 2013 Adjusted OIBDA* forecast to between $5.5 billion and $5.7 billion. The company’s previous forecast was for Adjusted OIBDA* to be at the high end of between $5.2 billion and $5.5 billion and did not include the dilutive effects of the SoftBank and Clrwire transactions, which are estimated to be approximately $400 million, subject to finalization of fair values. Including the impacts of these transactions, the company now expects 2013 Adjusted OIBDA* to be between $5.1 billion and $5.3 billion.
The company expects 2013 capital expenditures of approximately $8 billion.
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