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Sprint Reports Fiscal Year 2019 First Quarter Results

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OVERLAND PARK, Kan., Aug. 2, 2019 /PRNewswire/ —

  • Wireless service revenue of $5.3 billion
    • Postpaid wireless service revenue of $4.2 billion grew year-over-year
    • Postpaid average revenue per account (ARPA) of $124.89 stabilized year-over-year
  • Net loss of $111 million, operating income of $455 million, and adjusted EBITDA* of $3 billion
  • Postpaid net additions of 134,000
    • Data device net additions of 262,000 were partially offset by phone net losses of 128,000
    • Average postpaid accounts were stable year-over-year
  • Continued momentum on Next-Gen Network deployment
    • True Mobile 5G network launched in parts of five major metro areas with more to come
    • Network investments of $1.2 billion grew year-over-year for the fourth consecutive quarter
  • Further progress on digitalization initiatives
    • Postpaid gross additions in digital channels increased approximately 50 percent year-over-year

Sprint Corporation (NYSE: S) today reported results for the fiscal year 2019 first quarter, including year-over-year growth in postpaid wireless service revenue and postpaid net additions. The company also reported a net loss of $111 million, operating income of $455 million, and adjusted EBITDA* of $3 billion.     

“While we delivered good results in the first quarter relative to expectations, the business still faces several structural headwinds and I remain convinced the merger with T-Mobile is the best outcome for our customers, employees, industry and all stakeholders,” said Sprint CEO Michel Combes. “With the recent clearance of our merger by the Department of Justice, and the anticipated approval from the FCC, we are moving one step closer to building one of the world’s most advanced 5G networks and providing American consumers a better network and overall experience at New T-Mobile.”    

Stable Wireless Service Revenue

Sprint has focused on growing revenue per customer account by selling additional devices and value-added services, including promoting its feature-rich Unlimited Plus and Unlimited Premium rate plans. This strategy delivered year-over-year growth in postpaid wireless service revenue and postpaid net additions of 134,000, driven by growth in data devices and partially offset by postpaid phone customer losses. The company also reported a stabilization of postpaid ARPA and average postpaid accounts.

Total wireless service revenue of $5.3 billion declined 3 percent year-over-year, largely because of the continued amortization of prepaid contract balances as a result of adopting the new revenue standard last year. Excluding this non-operational impact, total wireless service revenue would have been relatively flat year-over-year.

The company also reported the following financial results.

(Millions, except per share data)Fiscal 1Q19Fiscal 1Q18Change
Net (loss) income attributable to Sprint($111)$176($287)
Basic (loss) income per share($0.03)$0.04($0.07)
Operating income$455$815($360)
Adjusted EBITDA*$3,042$3,280($238)
Net cash provided by operating activities$2,244$2,430($186)
Adjusted free cash flow*($58)$8($66)

Network Investments Continued as Sprint Launches True Mobile 5G Network

Sprint’s quarterly network investments, or cash capital expenditures excluding leased devices, of $1.2 billion grew year-over-year for the fourth consecutive quarter as the company made continued progress on executing its Next-Gen Network plan. Sprint nearly doubled the number of Massive MIMO radios on-air during the quarter and currently has about 3,000 units deployed.

Massive MIMO is a breakthrough technology that improves network capacity and is at the foundation of Sprint’s True Mobile 5G network. The company is using 64T64R (64 transmitters 64 receivers) Massive MIMO radios that support a feature called split-mode, which enables Sprint to simultaneously deliver LTE and 5G New Radio (NR) service.

True Mobile 5G from Sprint is available in areas of Atlanta, Chicago, Dallas-Fort Worth, Houston and Kansas City, and the company expects to launch service in areas of Los Angeles, New York City, Phoenix and Washington, D.C., in the coming weeks. Once all nine metro areas are launched, Sprint’s mobile 5G network will cover approximately 2,100 square miles and 11 million people, giving Sprint the largest initial 5G coverage footprint in the U.S. The company is offering 5G capable smartphones from LG and Samsung, along with a hotspot device from HTC.

As Sprint launches True Mobile 5G, the company continues to believe that a merger with T-Mobile is critical to accelerate the deployment of a ubiquitous, nationwide 5G network – one that includes coverage in rural locations. The combined company is expected to have the resources and technology to build a 5G network that fuels innovation across every industry, dramatically increasing competition, unleashing new economic growth, and creating thousands of jobs and billions of dollars in U.S. economic value. Together, the combined company is expected to lead the world in next-generation technology services and applications, bringing 5G service to nearly all Americans.


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