Sprint Corporation, on Thursday, came out beating estimates for the revenue generation in third-quarter
During the quarter, despite the U.S. wireless carrier cut down its price promotions for financial enhancement, there remained fewer than expected customers who left the carrier during the reported quarter.
Last year a U.S. tax helped the company to post net profits of $7.16 billion or $1.76 a share, which come down to a net loss of $141 million or 3 cents a share in the third-quarter against analysts’ expectation of 2 cent a share net loss.
In order to go into an effective competition with larger rivals like AT&T and Verizon, the T-Mobile-Sprint merger must be completed, Michel Combes, Sprint’s Chief Executive Officer, told analysts during the earnings call. Meanwhile, the company, which was facing a negative image of poor network quality, is following its plan to recoil expensive price promotions to gain business stability.
Sprint is the fourth largest carrier in the United States and has been holding 54 million customers in total, but during the third quarter ended Dec. 31, it lost a net 26,000 postpaid phone subscribers who pay the bill on monthly basis while analysts were expecting a net loss of 32,000 subscribers, according to research firm FactSet.
Sprint saw a rise of 4.4 percent in its total net operating revenue which climbed up to $8.60 billion which also beat the analysts’ forecast of $8.43 billion.
It is observed that customers remain stick with a carrier for longer period of time when more of his/her devices are connected on the network and for this company is focusing on promotion of data plans for devices like smartwatches and tablets.
For cash capital expenditures, company is expecting to be continuing with an amount between $5 billion to $5.5 billion.
Earlier in July, to get most out of it, Sprint re-launched its unlimited wireless plans by raising the prices while added extra features to those plans.