Sprint Nextel shows signs of life amidst losses
In spite of reporting quarterly losses wireless operator Sprint Nextel reported signs of improvement.
Sprint Nextel’s chief Executive said, First-quarter results, including increased net operating revenues and significant year-over-year net postpaid subscriber improvements show we continue to make progress in improving the business,"
The first quarter sales fell from $ 8.2 billion to $ 8.1 billion with a loss of 29 cents per share. However, the loss, after excluding special charges would be only 17 cents per share which is in line with the predictions made by the analysts.
The company lost 75000 net subscribers during the quarter. However, the good news is that there has been a year on year improvement in the post paid gross subscriber additions and also the highest prepaid subscriber addition in five years. In addition to that there has been an improvement in customer satisfaction for the ninth consecutive year.
This has resulted in a rise of 2.8% or 11 cents for the company which is better than its competitors. Also Verizon’s market capitalization has fallen 12.8% and AT&T’s stock has also fallen by 8.1%
The improvement of Sprint’s prices are partly due to its lower rates and partly due to focus on pre paid wireless services.
