Sprint Outlook Positive, Subscribers Rise: CEO Hesse
While Sprint Nextelmay not be generating profits, the wireless-service provider is adding subscribers, losing fewer paid monthly subscribers, getting fewer customer complaints, and is generating positive free cash flow, CEO Daniel Hesse said on CNBC Wednesday.
"We have a couple quarters of stable revenue, stable earnings, and positive free cash flow, so we’ve indicated we expect to continue to generate positive cash flow going forward," Hesse said.
Earlier Wednesday, Sprint reported its second-quarter loss widened to $760 million, or 25 cents per share, from $384 million, or 13 cents per share, a year earlier. The latest quarter included a charge of 10 cents per share for deferred tax assets.
But Hesse pointed to the fact the company was adding subscribers even without the benefit of its popular EVO 4G phonemade by HTC. The second quarter was the first time Sprint had added subscribers in three years.
"We would have been positive in terms of total net subscribers and Sprint-branded subscribers even without the EVO," Hesse said. "We launched (the EVO) late in second quarter and we’ve been supply constrained."
Hesse also said the company expects to continue to add subscribers through 2010.
The company's strength has allowed Sprint to hire some employees in its retail stores, but it has needed fewer employees in its "customer care" area, because the company is receiving fewer complaints, Hesse said.