Sprint Nextel today reported its second quarter 2012 results with a net loss of $1.4 billion and a diluted net loss of $0.46 per share as compared to net loss of $847 million same quarter a year ago. The second quarter 2012 results include accelerated depreciation of $782 million, or negative $.26 per share (pre-tax), primarily related to Network Vision, including the expected shutdown of the Nextel platform; $184 million, or negative $.06 per share (pre-tax).
The company reported wireless service revenues of $7.3 billion during the quarter, an increase of more than 8 percent year-over-year, driven primarily by Sprint platform postpaid ARPU growth of $4.31 – the largest quarterly year-over-year increase on record for the U.S. wireless industry. Sprint platform postpaid net additions of 442,000 improved by 68 percent sequentially driven by best ever quarterly churn performance of 1.69 percent, a Nextel postpaid recapture rate of 60 percent and the continued strength of iPhone sales. Sprint recorded nearly 1.5 million iPhone sales in the second quarter with 40 percent going to new postpaid customers.
“The Sprint platform achieved best ever postpaid ARPU and customer churn that, combined with disciplined customer acquisition and cost management, contributed to our Adjusted OIBDA of $1.45 billion,” said Dan Hesse, Sprint CEO. “Based on this performance, we are raising the 2012 Adjusted OIBDA forecast to between $4.5 billion and $4.6 billion.”
Sprint Q2 2012 Results Highlights:
- Best ever Sprint platform postpaid ARPU of $63.38 drives Sprint platform wireless service revenue growth of 16 percent year-over-year
- Best ever Sprint platform postpaid churn of 1.69 percent
- Continued strong iPhone sales of nearly 1.5 million – 40 percent to new postpaid customers
- Network Vision deployment continues on track
- Launched 4G LTE in five major markets and 15 cities on July 15
- Continue to expect 12,000 sites on air by the end of 2012
- Shutdown of 9,600 Nextel sites now complete
- 60 percent of postpaid subscribers leaving Nextel platform recaptured on Sprint platform
- Operating loss of $629 million; Adjusted OIBDA of $1.45 billion increases 10 percent year-overyear and includes Network Vision and iPhone dilution
- Year-over-year increase in Adjusted OIBDA is the highest in more than five years
- Sequential quarterly increase in Adjusted OIBDA of 20 percent
- 2012 Adjusted OIBDA forecast increased to between $4.5 billion and $4.6 billion
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