Sprint Posts Quarterly Profit Of $383 Mln - Quick Facts

(RTTNews) - Telecom service provider Sprint Corp. (S) reported net income of $383 million, and operating loss of $398 million in the third quarter of 2013. Both net income and operating loss included pre-tax expenses of $217 million mainly related to the Clearwire and SoftBank transactions including fees, severance and exit costs, the company said. Further, net profit included a one-time, non-cash, $1.4 billion gain, net of taxes related to the write-up of Sprint's earlier held investment in Clearwire.

In the prior-year period, net loss was $767 million and operating loss was $231 million, including pre-tax, accelerated depreciation of $397 million primarily associated with the Nextel platform shutdown.

On a combined basis, net operating revenues totaled $8.68 billion in the recent quarter. For the quarter, Wireless service revenue of $7.3 billion grew year-over-year for the 13th consecutive quarter, Sprint added.

Adjusted EBITDA of $1.34 billion improved 5 percent year-on-year as growth in Sprint platform service revenue, network savings resulting from the Nextel platform shutdown and lower net subsidy expense were partially offset by the loss of Nextel platform revenue and transaction-related dilution including the impact from purchase price allocations of about $125 million and the inclusion of 100 percent of Clearwire's net loss.

Sprint's Chief Executive stated, "During the third quarter Sprint platform postpaid service revenue and ARPU once again hit record levels and we continue to make great strides in our 4G LTE rollout."

Looking ahead, the firm still expects 2013 adjusted EBITDA to be between $5.1 billion and $5.3 billion, including the dilutive effects of the SoftBank and Clearwire transactions.