“Struggling mobile-phone service provider Sprint Nextel Corp.’s first-quarter loss widened on a charge related to severance costs as the company continued to lose subscribers,” Kerry E. Grace reports for Dow Jones Newswires.
“Chief Executive Dan Hesse said Monday the company had the largest sequential improvement in gross additions in company history, driven by the success of Boost Mobile prepaid plans. However, the company continued to lose subscribers on a net basis,” Grace reports.
“The third-largest provider of U.S. mobile-phone services Monday posted a loss of $594 million, or 21 cents a share, compared with a year-earlier loss of $505 million, or 18 cents a share. The latest results include $327 million in severance costs related to job cuts – the company is shedding 13% of its workforce to save about $1.2 billion a year. Revenue decreased 12% to $8.21 billion,” Grace reports. “Analysts polled by Thomson Reuters expected a 5-cent loss and revenue of $8.28 billion.”
“The number of subscribers slid 0.4% from the prior quarter to 49.1 million. The post-paid segment, or customers on contracts that provide the highest revenue margins, dropped 1.3 million, putting the total decline in the past six quarters at more than 6 million,” Grace reports. “By contrast, rivals AT&T Inc. and Verizon Wireless have added 1.2 million and 1.3 million customers during the period, respectively.”
Full article here.
[Thanks to MacDailyNews Reader “iSteve” for the heads up.]