Earnings: Sprint Nextel Q4 Down 6 Percent; Major Writedown; Sub Losses; Unlimited Plan With Data
Sprint (NYSE: S) Nextel has reported Q4 revenue of $9.8 billion, a 5.7 percent decline from $10.4 billion in the year-ago period. Excluding a large $29 billion writedown of goodwill, which distorts the net income number, the company had adjusted operating income of $235 million, down 69 percent from $770 million. Weakness in wireless voice was to blame for the results. Some highlights:
SEE ALSO: Sprint May Surprise All By Undercutting Carriers In The Unlimited Calling Plan
—Total wireless subscribers hit 53.8 million, up from 53.1 million at the end of 2006. The growth all came from pre-paid users, as post-paid subscribers declined by 1.2 million.
—Post-paid ARPU declined to $58 from $60, and that includes a 21 percent increase in data ARPU from CDMA customers.
—Pre-paid ARPU was under $28, falling from $30 a year ago.
—For the full year, the company spent $384 million on WiMAX capex and another $193 million on related operating expenses.
—Going forward, the company continues to pursue a reorganization plan, and it expects to report another 1.2 million decline in its post-paid subscriber rolls in the first quarter. Post-paid ARPU is expected to sag further, although no data was given.
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