Sprint Nextel Reports Fourth Quarter and Full Year 2010 Results
* Best ever fourth quarter and annual postpaid churn results
* Twelfth consecutive quarter of improvement in Customer Care Satisfaction and First Call Resolution
* Sequential and year-over-year total quarterly net operating revenue growth
* Free Cash Flow* of $913 million in the fourth quarter and $2.5 billion for 2010
The company’s fourth quarter and full year 2010 earnings conference call will be held at 8 a.m. EST today. Participants may dial 800-938-1120 in the U.S. or Canada (706-634-7849 internationally) and provide the following ID: 38599868, or may listen via the Internet at www.sprint.com/investor.
OVERLAND PARK, Kan. (BUSINESS WIRE), February 10, 2011 – Sprint Nextel Corp. (NYSE: S) today reported that during the fourth quarter of 2010, the company achieved its best total company wireless subscriber additions and net postpaid additions since the first and second quarters of 2006, respectively. The company added nearly 1.1 million total wireless subscribers driven by net postpaid subscriber additions of 58,000, which include net subscriber additions of 519,000 for the Sprint brand – and the company’s best ever fourth quarter prepaid net subscriber additions of 646,000. The company delivered postpaid churn of 1.86 percent – the best postpaid churn result Sprint has reported in the fourth quarter of any year. Sprint achieved its best ever annual postpaid churn of 1.95 percent in 2010.
Sprint generated $913 million of Free Cash Flow* in the quarter, and $2.5 billion for full year 2010. As of December 31, 2010, the company had nearly $5.5 billion in cash, cash equivalents and short-term investments. Sprint reported fourth quarter consolidated net operating revenues of approximately $8.3 billion, which is a 6 percent increase from the same quarter a year ago, and an operating loss of $139 million, a 74 percent improvement from the year ago period. The company also reported a net loss of $929 million and a diluted loss per share of 31 cents for the quarter. Full year 2010 results included consolidated net operating revenues of $32.6 billion, an operating loss of $595 million, which is a 57 percent improvement compared to 2009, and a diluted loss per share of $1.16.
“I am pleased with the progress Sprint made in 2010 in each of our three focus areas. Sprint’s customer experience and brand continued to strengthen during the year, and we generated excellent cash flow,” said Dan Hesse, Sprint CEO. “It had been almost five years since we added over a million customers in a quarter, and the annual improvement in postpaid subscriber results of 2.7 million vs. the previous year is unprecedented in the history of the U.S. wireless industry.”
Sprint continues to receive recognition for customer service leadership from prominent and well-read consumer publications and organizations including recent recognition by Vocal Laboratories Inc. (Vocalabs), which found that in 2010 Sprint moved to first place among its peers in call satisfaction and first call resolution, among surveyed customers. Frost & Sullivan also praised Sprint with awards for Value Enhancement in Mobile Advertising and Green Excellence in Mobile & Wireless. The HTC EVOTM 4G’s award-winning streak continued when it was selected for Good Housekeeping’s Very Innovative Products Award, which recognizes products that are ingenious breakthroughs.
Sprint’s multi-brand prepaid strategy again made significant contributions to the company’s subscriber growth. Focusing on value and simplicity, Sprint prepaid brands like Assurance WirelessSM and Virgin Mobile offer consumers affordable choices and alternatives to long-term wireless contracts. Innovative offers like Boost Mobile’s Monthly Unlimited with Shrinkage, a loyalty program that allows customers to reduce their bills after six on-time payments, have helped Sprint’s prepaid brands differentiate themselves in a rapidly growing market. In 2010, Sprint added more than 1.6 million prepaid subscribers to its networks and now serves 12.3 million prepaid subscribers.
“We have momentum entering 2011, and in addition to offering our customers simplicity and value with our unlimited data plans, we will continue to focus on device leadership, especially in 4G, as our 18 4G devices leads the industry by a wide margin,” Hesse said.
Sprint offers more 4G products than any other wireless carrier in the United States, including three handsets. During fourth quarter 2010, Sprint officially launched the embedded 3G/4G netbook and notebook, DellTM InspironTM Mini 10 (1012) and DellTM InspironTM 11z. Last month, Sprint also announced the availability of the MiFi® 3G/4G Mobile Hotspot by Novatel Wireless and the HTC EVOTM Shift 4G. Sprint launched 4G service in 16 new markets during the quarter, including New York, San Francisco, Miami and Los Angeles. Sprint 4G is now available in 71 markets, reaching more than 110 million people.
Sprint also launched three exciting Android devices featuring integrated Sprint ID: LG Optimus STM, Sanyo ZioTM by Kyocera, and Samsung TransformTM. Sprint ID, introduced in October, is a user-friendly way for customers to personalize their AndroidTM experience, conveniently downloading ID packs that feature applications, screensavers and more. Sprint has collaborated on the development of Sprint ID packs with ESPN, HSN and MTV and previously announced its collaboration with BodyMedia, Inc., among others.
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