The Kansas City Royals won the World Series and had a huge, two-mile long parade Tuesday. But, the joy did not spill across the city’s Missouri border to Kansas where Sprint’s chiefs were mulling over so-so second quarter results. The fourth-largest U.S. wireless carrier (NYSE: S) reported Q2 EPS of minus 15 cents versus a loss of 19 cents during the same time last year. Sprint said it had $7.98 billion in revenue, versus $8.49 billion last year. Consolidated Adjusted EBITDA grew about 45 percent to $2 billion from the previous year as expense reductions more than offset the decline in service revenue.
Among the good news was a total net addition were 1.1 million compared to 590,000 in 2014 an increase of 466,000 year-over-year.
“This quarter marked an inflection point in our turnaround journey, as we achieved positive postpaid phone net additions for the first time in over two years,” CEO Marcelo Claure said. “In addition, we set another record low for postpaid churn and improved sequentially in the September quarter, something no U.S. carrier has ever done before.”
There have been concerns on Wall Street about the company having enough money to do what it proposes to do. So, the company told investors that it “continues to work toward utilizing its assets to help fund the business and fuel future growth. The company has made significant progress working with SoftBank and others to establish a handset leasing company and expects to close in the next few weeks.” Sprint also said it expects its handset leasing company and other upcoming financing structures to sufficiently meet the company’s cash needs for the foreseeable future.
Sprint shares closed down 35 cents at $4.50 Tuesday.
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