Demand for wireless boosts Sprint's earnings


Demand for wireless boosts Sprint's earnings

Sprint reported a surge in second quarter earnings, buoyed by solid demand for the US telecommunications company's wireless services.

Net income in the second quarter, which ended on 30 June, surged to $233m (£126m), compared to $7m in the same period a year earlier, Sprint said.

Second quarter net operating revenue rose 6.3% to $6.9bn from $6.5bn the year before.

Net operating revenue in the wireless unit came in at $3.6bn, up 17% from $3.1bn a year ago. At the end of June, the unit had 22.2 million subscribers, up 14% year-on-year.

The company added 897,000 subscribers in the second quarter. Average revenue per user rose slightly to $62 per month.

However, Sprint saw revenue dip for both its local and long-distance telephone and internet services. Net operating revenue for local service dropped 1% to $1.14bn in the second quarter from $1.17bn a year earlier. Net operating revenue for long-distance service fell 6.6% to $1.87bn from $2bn.

The operator raised its 2004 earnings guidance, saying that revenue from wireless services would offset weaker sales of its local and long-distance services. The operator said it expects net operating revenue for the full year to increase between 3% and 4%.

John Blau writes for IDG News Service

Email Alerts

Register now to receive IT-related news, guides and more, delivered to your inbox.
By submitting your personal information, you agree to receive emails regarding relevant products and special offers from TechTarget and its partners. You also agree that your personal information may be transferred and processed in the United States, and that you have read and agree to the Terms of Use and the Privacy Policy.

COMMENTS powered by Disqus  //  Commenting policy