news: SPRINT Bucks 3rd Quarter Trend, Subscriber Growth Dwindles

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Bucking the positive third-quarter trend for the industry, Sprint PCS today
reported a quarterly loss as its subscriber growth dwindled. The carrier
posted revenue of $3.34 billion, up from $3.16 billion last year. The
company had a net loss of 7 cents per share, compared with a loss of a penny
per share a year ago. Sprint PCS added 184,000 new subscribers in the
quarter, a substantially smaller amount than the 341,000 analysts had
predicted. Analysts also believe that based on Sprint's numbers, the carrier
lost market share last quarter as well. Sprint PCS also confirmed its
earlier prediction for a year-long loss, excluding special items, of 43
cents to 48 cents per share.

For More On Sprints Disaapointing Numbers, Heres An Item from Reuters



CHICAGO (Reuters) - Sprint PCS Group, the fourth-largest U.S. wireless phone
company, on Thursday posted a quarterly loss as it lost more customers and
added fewer than expected, sending its shares down almost 10 percent.

Sprint PCS, a unit of Sprint Corp., said it added 184,000 direct subscribers
in the third quarter, significantly lower than the 341,000 analysts had
expected, according to a poll by Reuters.

Analysts believe Sprint PCS also lost market share in the quarter.

"They're still moving in the right direction. Revenue is growing, (operating
cash flow) is growing sequentially, but they're not keeping up with the
industry leaders. That's the problem," said Kevin Roe, president of Roe
Equity Research.

"Sprint used to be an industry leader in growing customers. That's not
happening," he said.

The U.S. industry had suffered a slowdown in customer growth over the past
few years, but signs had been pointing toward a recovery this year as
operators are careful to control costs and add customers profitably -- in
contrast to the "add customers at any cost" mentality exhibited previously.

However, some analysts noted the industry might also be splintering as
operators serving high-end customers and low-end customers were gaining,
while others caught in the middle were struggling.

No. 3 U.S. operator AT&T Wireless Services Inc. on Wednesday posted a
quarterly net profit and higher revenue, but it also saw subscriber loses
rise significantly as it got rid of unprofitable customers.

On the other hand, Nextel Communications Inc. handily beat expectations
overall. Verizon Wireless, the largest U.S. wireless company, is also
expected to post strong results.

For the third quarter, Sprint PCS had a net loss of 7 cents a share,
compared with a loss of a penny a share a year ago. Excluding one-time gains
from the sale of an investment and a tax benefit in last year's quarter,
Sprint PCS posted a loss of 13 cents per share.

Analysts on average had expected the Overland Park, Kansas-based company to
post a loss of 6 cents a share, according to Reuters Research, a unit of
Reuters Group Plc.

Operating revenue rose to $3.34 billion from $3.16 billion as it added
nearly 500,000 customers to its total customer base. Sprint PCS said 184,000
of those were direct subscriber customers, while 290,000 were customers
added through wholesale deals and 22,000 came from its affiliate partners.

Sprint PCS also confirmed its full-year outlook for a loss from continuing
operations, excluding special items, of 43 cents to 48 cents a share.

It expects operating income of $800 million to $900 million as it adds
customers in the low to mid 6 million range, not accounting for those
customers who cancel service.

The company said it now expects free cash flow of about $300 million for the
year, compared with its previous estimate of $200 million.

Shares of Sprint PCS fell 49 cents, or 9.2 per cent, to $4.83 early Thursday
on the New York Stock Exchange.

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› See More: news: SPRINT Bucks 3rd Quarter Trend, Subscriber Growth Dwindles

Keep in mind that Sprint will be picking up an additional 980K new
customers next year when the Qwest deal is completed.

--
Posted at SprintUsers.com - Your place for everything Sprint PCS
Free wireless access @ www.SprintUsers.com/wap

"larry" <[email protected]> wrote in message
news:[email protected]...
>
> Keep in mind that Sprint will be picking up an additional 980K new
> customers next year when the Qwest deal is completed.
>

Yeah .... sort of. I don't think these new "customers" bring full revenue.

Tom Veldhouse