Sprint has just released its earnings report for the first quarter of this year, and the results are quite mixed. With regards to financial losses, it appears that the fourth biggest wireless carrier in the United States continues its struggles, registering a loss in the amount of $554 million (or $0.14 a share) on revenue of $8.07 billion. Compared to how the company did during the first quarter of 2015 when it posted a loss of $224 million (or $0.06 a share) on revenue of $8.28 billion, it certainly is not an improvement.
Still, in terms of postpaid wireless subscribers, Sprint managed to gain some, welcoming 22,000 new sign ups. Mobile network service providers generally view postpaid wireless subscribers (users who pay for wireless service at the end of every month) as more valuable than other types of customers because they have better credit and typically spend more. The 22,000 new customers that Sprint had added in the first three months of the year may not be much, but considering the volume of customers the industry leaders lost during the recently concluded quarter (Verizon Wireless lost 8,000 postpaid wireless subscribers, AT&T lost a staggering 363,000), Sprint’s numbers are definitely not bad. It can not compare to the 877,000 new customers that T-Mobile gained though, and easily failed to reach the 200,000 projected by various industry watchers.
According to Marcelo Claure, the chief executive officer of Sprint, it is imperative that the company do some fine tuning with regards to its finances and operations, if it wants to post some improvement in the next few quarters. Claure specifically mentioned the need for establishing a faster and better network, as well as an expanded retail channel and better overall spending habits.
Per tests conducted by Nielsen Mobile Performance Data and RootMetrics, Sprint actually offers faster 4G LTE download speeds, but only in specific areas where it has already completed its roll out of its LTE Plus service. When it comes to its finances, the wireless carrier has already started a comprehensive cost cutting initiative, managing to slash $1.5 billion in spending in the past half year, with more cuts in the months to come. Of course, cost cutting efforts will not be nearly enough -- Sprint will have to shore up its revenues too. This is where an expanded retail channel plays a huge part. According to Claure, the wireless carrier currently has plans to join forces with Carphone Warehouse (based in the United Kingdom) to have its wireless services made available in 2,500 more retail outlets in the next couple of years.
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