Sprint Nextel on Thursday posted a net loss loss of $1.37 billion in the second quarter of 2012. The nation's third largest wireless operator blamed the big loss on the cost of shutting down Nextel, network upgrades and huge iPhone subsidies paid to Apple.
Sprint actually saw growth with $7.3 billion in sales, compared to a $847 million loss in the same quarter of 2011. Overall, revenues were up about 4 percent over last year, which isn't really anything to brag about.
Unfortunately for Sprint, the bad news didn't stop there, as the company lost 668,000 Nextel customers in the quarter. Apparently only 60 percent of all Nextel customers signed new, two-year agreements. The others, it appears, simply decided to leave for other carriers.
While extremely worrying, Sprint's losses were expected. The company has been facing some big competition from AT&T and Verizon. T-Mobile USA and other regional carriers also introduced lower rate plans this quarter, which I'm sure also had an effect on Sprint's business.
Despite all the negatives, there were a few rays of light for Sprint with today's report. The carrier added nearly 442,000 post-paid subscribers and sold 1.5 million iPhones. Postpaid churn also dropped to just 1.69 percent, and the company adjusted its OIBDA forecast for the year from $4.5 billion to $4.6 billion
Sprint is currently trying to get back on track this year with LTE, the iPhone and other high-end Android devices, so it will be interesting to see how the year plays out. There are definitely some positives here so we'll just have to see what happens. Sprint certainly has an uphill battle to fight in 2012 and 2013.
To see Sprint's full earnings report, head on over to Sprint's investor site.
?Source: Sprint
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