Sprint Reports 2.2 Million iPhones Sold in Q4 2012, Net Loss of $1.3 Billion

Sprint Reports 2.2 Million iPhones Sold in Q4 2012, Net Loss of $1.3 Billion

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Sprint reported its fourth quarter 2012 earnings today revealing that it sold 2.2 million iPhones with 38% percent purchased by new customers.

The company also reported a net loss of $1.3 billion for the quarter which is being blamed on the cost of supporting these next iPhone customers.

More details below....

Sprint Nextel Corp. today reported fourth quarter consolidated net operating revenue of $9 billion and full year 2012 consolidated net operating revenue of $35.3 billion. Sprint reported record quarterly and annual Sprint platform wireless service revenues of nearly $7 billion and $27.1 billion, respectively. Driven by increasing postpaid ARPU and continued Sprint platform subscriber growth, wireless service revenues for the Sprint platform grew 12 percent year-over-year for the quarter and nearly 15 percent for the full year.

The company reported a net loss of $1.3 billion and a diluted net loss of $.44 per share for the fourth quarter of 2012 as compared to a net loss of $1.3 billion and a diluted net loss of $.43 per share in the fourth quarter of 2011. Sprint’s fourth quarter 2012 results include accelerated depreciation of approximately $400 million, or negative $.13 per share (pre-tax), primarily related to Network Vision, including the expected shutdown of the Nextel platform, and $45 million or negative $.01 per share (pre-tax) related to impacts from Hurricane Sandy.

The Sprint platform postpaid subscriber base grew for the eleventh consecutive quarter, with net additions of 401,000 driven by a postpaid Nextel recapture rate of 51 percent, or 333,000 subscribers, and strong 4G LTE smartphone sales. Sprint platform prepaid net additions equaled 525,000 due in part to the best ever quarterly prepaid Nextel recapture rate of 50 percent, or 188,000 subscribers. Sprint sold approximately 2.2 million iPhones in the fourth quarter with 38 percent purchased by new customers. As of the end of the fourth quarter, Sprint had sold more than 4 million 4G LTE smartphones.

“Sprint’s strong performance was fueled by record wireless service revenue on the Sprint platform due to year-over-year postpaid ARPU growth and Sprint platform net additions,” said Dan Hesse, Sprint CEO. “As a result, quarterly Adjusted OIBDA* performance improved year-over-year in spite of significant cost increases related to Network Vision and the iPhone, both of which are key investments for our business that we expect will improve the customer experience and lead to growth in the years ahead.”

Sprint Reports 2.2 Million iPhones Sold in Q4 2012, Net Loss of $1.3 Billion
DavidG - February 8, 2013 at 6:25pm
I agree with the Sprint employee. They used to be great with their network but they're left behind. They at least make up for it by making real unlimited plans which include unlimited data. I love that. This gives me no worries and I use my iPhone as much as I want. I do wish they catch up with 4g LTE. NYC doesn't have it yet so don't feel bad Floridian. It will be there soon enough. Maybe hey should just build something even faster than 4g.
Sprint Employee - February 7, 2013 at 4:22pm
I work for Sprint at a Corporate store, Reason why they have so much loss is not because of the iphone is because they wasting so much money on the network vision which dont seem to be helping at all with the sales. 90% of the returns at my store is because of network failure. Many unhappy customers that have been with sprint for years are porting out because of the same network issue. Im in south florida and the network cant get any worse. As a consumer if service was that bad i would consider every other option available any day. The only way that they will get back up is if they finish the network vision and support the LTE in all major States like Florida. Specially cities like Miami. Until then i see us going to shit. They already lowerered our salary . Idk what else is going to happen.
6italia0 - February 7, 2013 at 3:33pm
Sprint USA will be the first major US carrier to lose the iPhone, I have absolutely no doubt it will happen lol