Sprint managed to add 1.1 million customers during the third quarter of this year, which in actuality is the fiscal second quarter of the wireless carrier. The 1.1 million gain in customers is largely attributed by the company to its wholesale contracts with various reseller partners like Tracfone. Despite the impressive number of new customer additions, Sprint’s growth was not enough to unseat T-Mobile as the third largest wireless carrier in the United States right now.
While 1.1 million customers might be cause for celebration, the fact that Sprint posted financial losses during the third quarter of 2015 leaves a lot to be desired for the wireless carrier. Based on the latest quarterly financial report it released, the company recorded a loss in the amount of $585 million, or $0.15 per share, on revenue of $7.98 billion.
Adding to Sprint’s woes is the fact that the per share loss it posted is actually worse than what investors had projected, according to Thomson Reuters. Indeed, the investors had expected the wireless carrier to post a lost of $0.08 a share, on revenue of $8.14 billion, but Sprint’s latest quarterly results paint a more bleak picture. This had lead the company to lower its whole year projection to the low end of its previous range. Plus, Sprint’s shares dropped 7.6 percent to $4.48.
It certainly is a mixture of good news and bad news for Sprint. On the positive side, the wireless carried did manage to improve its customer turnover rate. In the postpaid segment, Sprint’s churn rate decreased to 1.54 percent compared to the 2.18 percent it suffered one year ago. The company actually hit a milestone by gaining 237,000 postpaid smartphone customers. That marks the first time in a couple of years that Sprint showed growth in the postpaid segment, which strongly suggests that mobile users are beginning to be more welcoming of the idea of signing up under Sprint’s service. Also, it may be a sign that the wireless carrier’s lowering of its prices are indeed working.
But as mentioned earlier, Sprint’s net new numbers are still not enough to beat T-Mobile’s 2.3 million customers, or industry leader Verizon Wireless’ 1.3 million. AT&T had managed to gain 2.5 million customers, but this number takes into account the 1 million cars it connected over the third quarter of the year.
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