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Sprint Nextel Q2 Earnings reveal Wider Loss of $1.4 Billion

Jul 26 2012, 6:18am CDT | by , in News | Technology News

Sprint Nextel Q2 Earnings reveal Wider Loss of $1.4 Billion

Sprint Nextel reported the Q2 2012 earning numbers. IPhone sales look good with 1.5 million, but the carrier still loses money.

Sprint Nextel Corp. today reported a net loss of $1.4 billion compared to a net loss of $847 million in the second quarter of 2011.

Sprint platform postpaid net additions of 442,000 improved by 68 percent sequentially driven by best ever quarterly churn performance of 1.69 percent, a Nextel postpaid recapture rate of 60 percent and the continued strength of iPhone® sales. Sprint recorded nearly 1.5 million iPhone sales in the second quarter with 40 percent going to new postpaid customers.

Sprint’s second quarter 2012 results include accelerated depreciation of $782 million, or negative $.26 per share (pre-tax), primarily related to Network Vision, including the expected shutdown of the Nextel platform; $184 million, or negative $.06 per share (pre-tax), for the recognition of lease exit costs for the remaining lease obligations associated with certain Nextel sites shut down; and an impairment of $204 million, or negative $.07 per share (pre-tax), related to Sprint’s investment in Clearwire.

The company reported wireless service revenues of $7.3 billion during the quarter, an increase of more than 8 percent year-over-year, driven primarily by Sprint platform postpaid ARPU growth of $4.31 – the largest quarterly year-over-year increase on record for the U.S. wireless industry.

Sprint has launched 4G LTE in 5 majore markets and 15 cities this month.

The full Sprint Q2 2012 numbers can be found here.

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