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 Clearwire, 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 increased 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 peace of mind that unlimited brings.”
Sprint Platform Again Achieves Record Revenue, ARPU and Subscribers
Sprint platform service revenue, postpaid ARPU and postpaid subscribers all reached 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 year-over-year for the 11th consecutive quarter.
As expected, the Sprint platform lost prepaid customers as a result of planned deactivations 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 year-over-year.
Adjusted OIBDA* Relatively Flat Year-Over-Year Despite Higher Network Vision Dilution
Adjusted OIBDA* of $1.4 billion decreased by 2 percent year-over-year 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 year-ago period also included a pre-tax impairment of $204 million related to Sprint’s investment in Clearwire.