Sprint’s quarterly losses came in lower than expected with great postpaid additions and low churn
Fourth quarter results are in, and it looks like Sprint’s aggressive marketing and price slashing has paid off. The carrier still posted a loss, but its postpaid subscriber additions and customer retention are both on the up and up.
Total revenue for Sprint was $8.1 billion, which was slightly lower than analyst expectations. However, Sprint only had an operating loss of $197 million, which is an enormous improvement over the $2.4 billion lost this time last year.
Much of this was floated by Sprint’s aggressive marketing moves to capture more postpaid customers, and it paid off. The carrier added 366,000 postpaid subscribers, compared to losing 205,000 last year. That’s a swing of over 500,000, so not bad at all. Churn was at 1.64 percent, which isn’t a record number for Sprint, but it’s very close.
It’s not all good news, though, as Sprint’s total net additions were actually lower this year than the previous year’s quarter. We saw Spring add nearly a million customers in 2014, while not even breaking the 500,000 mark this time around.
Sprint still has a long road ahead, especially if it plans on competing at the high-end with Verizon and AT&T, but this quarter is proof that they’re moving in the right direction.
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