Sprint adds subscribers, but losses mount2010-10-27 11:17 by DanielaTags: Sprint Nextel
Sprint Nextel added more wireless customers in the third quarter than it has since 2006, which boosted revenue. But it still saw losses widen as customer spending declined and the carrier spent more to subsidize smartphones. During the third quarter, Sprint added 644,000 net customers of which 354,000 were new subscribers with contracts. The company also reported a churn rate - or the rate at which people leave its service - of 1.93 percent for its contract customers. This compares with a churn rate of 2.17 percent during the same quarter a year ago and 1.85 percent in the second quarter of this year. The additional customers boosted revenue to $8.15 billion, compared with $8.04 billion during the same quarter last year. Despite the revenue growth, losses widened to $911 million, or 30 cents a share, compared with a loss of $478 million, or 17 cents a share, a year ago. The biggest hit to the company's bottom line likely comes from subsidies for smartphones and other wireless equipment. Sprint spent nearly $1.1 billion on subsidizing wireless equipment for customers in the quarter. Compare this with the $950 million it spent on subsidies during the same quarter last year and the $1 billion it spent in the second quarter of this year. Read more -here-
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