- Operating Income of $29 million, includes accelerated depreciation of approximately $360 million; Adjusted OIBDA* of $1.5 billion up over 25 percent year-over-year, highest year-over-year increase in more than 6 years
- Sprint platform wireless service revenue of $7.1 billion is the highest-ever and increased nearly 9 percent year-over-year
- Best-ever Sprint platform postpaid ARPU of $63.67 grew nearly 2 percent year-over-year
- Sprint platform subscriber base reaches highest-ever level of 53.9 million
- Sprint platform postpaid net additions for the 12th consecutive quarter
- Postpaid Nextel recapture rate of 46 percent
- Highest-ever total prepaid subscribers at 16 million
- Strong smartphone sales of 5 million
- iPhone® sales exceed 1.5 million with 43 percent to new customers
- 86 percent of quarterly Sprint platform postpaid handset sales were smartphones
- Network Vision continues to gain momentum
- Exceeded target of 12,000 sites on air by the end of the quarter, and currently have more than 13,500 sites on air
- Nextel network on track to be shut down at the end of the second quarter
The company’s first quarter 2013 earnings conference call will be held at 8 a.m. ET today. Participants may dial 800-938-1120 in the U.S. or Canada (706-634-7849 internationally) and provide the following ID: 29196505 or may listen via the Internet at www.sprint.com/investors.
Additional information about results can be found in the “Quarterly Investor Update” posted on our Investor Relations website at www.sprint.com/investors.
OVERLAND PARK, Kan. (BUSINESS WIRE), April 24, 2013 - Sprint Nextel Corp. (NYSE: S) today reported operating income of $29 million, and Adjusted OIBDA* of $1.5 billion was the highest in nearly four years even as Sprint made significant investments in the business during the quarter. Sprint reported continued strong growth in the Sprint platform business, reaching highest-ever subscriber base and service revenue levels in the first quarter of 2013.
“This is a transformative year for Sprint and we’ve gotten off to a good start,” said Dan Hesse, Sprint CEO. “Record Sprint platform service revenue and subscriber levels fueled our performance. We achieved significant Adjusted OIBDA* growth while investing heavily to improve our network, expanding our 4G LTE footprint and offering customers the best smartphones with truly unlimited data plans.”
EPS and Operating Income Improve
Operating income for the quarter was $29 million as compared to a loss of $255 million in the year-ago period. Consolidated net service revenues of nearly $8 billion were flat year-over-year as Sprint platform growth offset declines in Nextel platform and Wireline revenues. The company reported a net loss of $643 million and a diluted net loss of $.21 per share for the first quarter of 2013 as compared to a net loss of $863 million and a diluted net loss of $.29 per share in the first quarter of 2012.
Adjusted OIBDA* Improves By Over 25 Percent Year-Over-Year
Quarterly Adjusted OIBDA* of $1.5 billion was the highest in nearly four years and improved by $311 million as compared to the first quarter of 2012. Adjusted OIBDA* improved year-over-year primarily due to growth in Sprint platform service revenue, lower cost of service and lower SG&A expense, partially offset by lower Nextel revenue.
Sprint Platform Achieves Record Revenue, ARPU and Subscribers
Sprint platform service revenue reached best-ever levels in the first quarter driven by all-time high postpaid ARPU and subscribers for the Sprint platform. Sprint platform postpaid ARPU grew by more than $1 year-over-year. Postpaid subscriber growth on the platform continued to benefit from better than expected recapture rates of Nextel customers as well as improved postpaid churn. Additionally, all three of the Sprint platform prepaid brands achieved net additions in the quarter and each reached highest-ever subscriber levels.
Unlimited Data and Iconic Smartphones Continue to Drive Growth
Eighty-six percent of quarterly Sprint platform postpaid handset sales were smartphones, including more than 1.5 million iPhones sold during the quarter. Forty-three percent of iPhone sales were to new customers, a rate that continues to outperform larger competitors.
Sprint continued to enhance its smartphone portfolio – launching HTC One® earlier this month and announcing plans to offer Samsung Galaxy S® 4 in the next few weeks as well as BlackBerry® Q10 and two Windows 8 phones later this year.
Network Vision Deployment Gains Momentum
Sprint made significant progress on the Network Vision deployment in the quarter, exceeding 12,000 sites on air during the first quarter. To date there are more than 13,500 sites on air compared to more than 8,000 reported on Feb. 7. The number of sites that are either ready for construction, already underway or completed has grown to more than 25,000.
As part of Network Vision, Sprint has launched 4G LTE in 88 cities, including Los Angeles, Boston and Charlotte, N.C. since the beginning of the year and expects that 4G LTE will be available in more than 170 additional cities in the coming months.
The company remains on track to shut down the Nextel platform at the end of the second quarter.
Third Parties Recognize Sprint Leadership
For the fourth time in a row, J.D. Power & Associates ranked Sprint highest in satisfaction with the purchase experience among Full Service Wireless Providers. Additionally, Sprint’s Boost Mobile prepaid brand was ranked highest in satisfaction with the purchase experience among Non-Contract Wireless Providers. Sprint also received U.S. Long-Haul Wholesale Carrier Excellence from ATLANTIC-ACM in the Brand, Network Performance, Customer Service and Voice Quality categories. Finally, Sprint collected the North American Mobile & Wireless Green Excellence Award from Frost & Sullivan.
The company expects 2013 Adjusted OIBDA* to be at the high-end of the previous forecast of between $5.2 billion and $5.5 billion excluding the effects of the closing of strategic transactions.
|Wireless Operating Statistics (Unaudited)|
|Quarter To Date|
|Net Additions (Losses) (in thousands)|
|Wholesale and affiliate||(224||)||(243||)||785|
|Total Sprint platform||356||683||1,918|
|Total Nextel platform||(771||)||(1,020||)||(836||)|
|Total retail postpaid net losses||(560||)||(243||)||(192||)|
|Total retail prepaid net additions||369||149||489|
|Total wholesale and affiliate net (losses) additions||(224||)||(243||)||785|
|Total Wireless Net (Losses) Additions||(415||)||(337||)||1,082|
|End of Period Subscribers (in thousands)|
|Wholesale and affiliate||7,938||8,162||8,003|
|Total Sprint platform||53,896||53,540||50,693|
|Total Nextel platform||1,315||2,086||5,410|
|Total retail postpaid end of period subscribers||31,317||31,877||32,822|
|Total retail prepaid end of period subscribers||15,956||15,587||15,278|
|Total wholesale and affiliate end of period subscribers||7,938||8,162||8,003|
|Total End of Period Subscribers||55,211||55,626||56,103|
|Supplemental Data - Connected Devices|
|End of Period Subscribers (in thousands)|
|Wholesale and affiliate||2,803||2,670||2,217|