Sprint Slips To Loss In Q1 - Quick Facts

(RTTNews) - Sprint Corp. (S) reported that its first-quarter net loss was $20 million, or loss per share of $0.01, compared to a net income of $23 million, or earnings per share of $0.01, in the year-ago period primarily due to higher interest expenses.

It recorded low Sprint platform postpaid churn of 1.56 percent, total net additions of 675,000, and for the fifth consecutive quarter, reduced postpaid phone losses to reach phone net additions in May and June, the company said.

Consolidated Adjusted EBITDA of $2.1 billion grew 14 percent from the prior year period, as expense reductions more than offset the decline in operating revenues. In spite of additional costs related to higher retail sales volumes, total expenses improved primarily due to lower cost of product expenses related to the introduction of device leasing options for which the associated cost is recorded as depreciation expense over the term of the lease, lower cost of service expenses on the wireline network, and lower wireless bad debt expense as a result of a higher mix of prime credit quality customers.

Net operating revenues of $8 billion decreased nine percent year-over-year, as customer shifts to rate plans associated with device financing options and postpaid phone customer losses drove lower wireless service revenues, and equipment revenues were impacted due to a shift from installment billing sales, which recognize more revenue at the point of sale, to leasing sales, which recognize revenues over time.

As a result of improved customer trends, a greater reduction in operating expenses, and a higher mix of sales on device financing options, the company raised its outlook for fiscal year 2015 Adjusted EBITDA from its previous expectation of $6.5 billion to $6.9 billion to a range of $7.2 billion and $7.6 billion, excluding any accounting impacts from the potential lease financing.

The company expects fiscal year 2015 cash capital expenditures to be approximately $5 billion, excluding the impact of leased devices sold through indirect channels. This compares to the previous expectation of accrued capital expenditures of approximately $5 billion.