In the words of songwriter/singer Paul Simon, Sprint Nextel's customers are "slip sliding away."
The nation's number-three wireless provider exceeded Wall Street's forecast by 2 cents Monday, but that better-than-expected result has not stopped the bleeding.
For the first quarter Sprint reported a loss of 505 million U.S. dollars, or 18 cents per share, a further knock from its 211 million dollar, or 7 cents per share, loss reported in last year's corresponding period. The company's sales fell to 9.3 million dollars from 10 million dollars. On an adjusted basis, the company earned 4 cents per share, ahead of Wall Street's forecast. Sprint's shares lifted 3.2 percent, or 30 cents, to 9.68 dollars in morning trading.
Total wireless subscribers declined to 52.8 million customers, compared with 53.6 million at the end of the first quarter of 2007. The company said 1.07 million of the loss came from post-paid customers. Post-paid customers pay for their service every month and are on 1- to 2-year contracts. Post-paid churn -- a measure of monthly customers dropping service -- was 2.5 percent, a few notches above the 2.3 percent recorded both in the first quarter and fourth quarter of 2007.
AT&T and Verizon Communications reported customer additions in the quarter and analysts have said these bigger companies took market share from Sprint. Poor service, wishy-washy marketing and a troubled integration of the Nextel business have caused Sprint to fall far behind its larger peers.
Sprint said wireless service revenue fell 9 percent year over year and 6 percent from the 2007 fourth quarter. The company credited lower average services revenue per customer and fewer post paid subscribers to the drop.
Source: Xinhua/Agencies
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