Sprint Q1 expected loss less but customers still leaving
US carrier Sprint is currently undergoing a transformative shift in its bid to make more headway and there are now indications that the current strategy is beginning to be more successful. However although losses are now reported as less than expected for Q1, it continues to be the case that customers are leaving the carrier for pastures new.
Sprint is the third-largest carrier stateside and we recently discussed how the company is still vying to purchase the remaining 50% of Clearwire although Verizon is now also showing interest. Meanwhile Dish is in a bid to acquire Sprint so there’s a lot going on right now. While Sprint stock has recently seen rises with more than tripled share values over the last year there’s still a way to go.
However, CEO Dan Hesse may be heartened by the figures for the first quarter of 2013 which showed a loss of 21 cents per share, down from analysts estimates of 34 cents a share. While sales rose to $8.79 billion, overall net loss was $643 million, that’s less than the $863 million first quarter Sprint losses of 2012.
Sprint also sold 1.5 million iPhones while 86% of its phones sales were from smartphones. Despite less than anticipated losses though, Sprint customers fell by 560,000 in one trimester and it remains to be seen how the carrier will reverse that trend.
Why do you think customers are continuing to jump ship from Sprint even though there has been an upturn in the company’s recent fortunes?