Sprint Posts Q2 2012 Earnings; $8.84 Billion in Revenues, $1.37 Billion in Net Losses

After Verizon and AT&T earlier this week, Sprint released its earnings for Q2 2012 today. It posted net operating revenues of $8.84 billion, with an operating loss of $629 million and a net loss of $1.37 billion. Its losses just keep on mounting — compared to Q2 2011, its losses have increased more than 60%.

It sold around 1.5 million iPhones in Q2, with 40% of them attributed to new postpaid customers. In addition to the iPhone, it also launched four top Android phones — Galaxy Nexus, LG Viper 4G LTE, HTC EVO 4G LTE and the Samsung Galaxy S III in Q2.

It is currently focusing on a major network overhaul — Network Vision — which would account for most of its increased expenses and resulting losses. It launched 4G LTE network support in 5 markets and 15 cities in July, and will continue to expand it in the coming quarters.

On the plus side, it has been able to improve its postpaid ARPU and churn levels to their best levels yet. It served more than 56 million customers in Q2 (32.6 million postpaid, 15.4 million prepaid, and 8.4 million wholesale & affiliate subscribers.)

While Nextel continues to report net subscriber losses, Sprint is trying its best to add postpaid and prepaid subscribers to its network. It lost 246,000 net postpaid and gained 141,000 net prepaid subscribers in the last quarter, the losses being primarily due to Nextel.

It reported $7.2 billion in wireless service revenues and $995 million in wireline service revenues. We expect wireless revenues to continue to grow as a proportion of its overall revenues.

Sprint’s cash reserves increased to around $6.8 billion, inclusive of short term investments.

Though it posted massive losses, its revenue beat consensus estimates and the future looks a bit more rosy, so its stock jumped nearly 20% following the earnings release, to $4.

via Sprint – SEC

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