Sprint Corporation (NYSE: S) Friday 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 strong 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 the world’s most advanced 5G networks and providing American consumers a better network and overall experience at New T-Mobile.”
Wireless service revenue of $5.3 billion and 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. There was a net loss of $111 million, operating income of $455 million, and adjusted EBITDA of $3 billion.
Craig Moffett of MoffettNathanson said the basic outline of the argument being made by the 15 State Attorneys General suing to block the Sprint/T-Mobile merger is simple. “However weak Sprint might be on its own, Dish Network would likely be weaker,” Moffett said. “Friday’s results are a reminder that Sprint, on its own, is still far from standing toe-to-toe with Verizon and AT&T. Sprint is losing phone subscribers, EBITDA is falling, and free cash flow remains negative. As a standalone entity, their balance sheet is untenable. But would Dish Network be better?” he asked.
Highlights included:
- 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
August 5, 2019
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