Sprint Tops Estimates, Yet Subscriber Exodus Continues

Thursday, 7 Feb 2013 | 8:22 AM ET
Getty Images

Sprint Nextel, which is seeking to sell 70 percent of its shares to Japan's SoftBank, posted higher fourth-quarter revenue even as it lost subscribers due to the wind-down of its older Nextel network.

Sprint, the No. 3 U.S. mobile service provider, said on Thursday it had a net loss of 243,000 subscribers in the quarter, compared with the average expectation for a loss of 292,000 from five analysts contacted by Reuters.

It added 401,000 customers to the Sprint network, including 333,000 customers that moved from Nextel.

Talking Numbers: Buy Sprint or Verizon?
Shares of Sprint are dipping today after it announced its plans to buy the remaining stake in Clearwire. Carter Worth, Oppenheimer and Zachary Karabell, discuss whether Sprint, or a larger telecom competitor, like Verizon, makes for a better investment now.

It posted a quarterly loss of $1.32 billion, or 44 cents per share, compared with a loss of $1.30 billion, or 43 cents per share in the year-ago quarter. Revenue rose to $9.01 billion from $8.72 billion. Wall Street expected $8.92 billion, according to Thomson Reuters I/B/E/S.

Sprint, which is spending heavily on upgrading its network this year, forecast 2013 adjusted operating income before depreciation and amortization in a range of $5.2 billion to $5.5 billion.

Its shares were largely unchanged in early trade after closing at $5.77 on the New York Stock Exchange.

  Price   Change %Change


Contact Earnings Central


    Get the best of CNBC in your inbox

    › Learn More