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Edited Date/Time
1/24/2012 9:02am
Sprint Nextel Corp. just lost their shirt...........wonder if the stock owners are happy that the company is losing huge market share and $$$ while dumping tons o' money into the NASCAR machine? Sure looks like a poor return on their investment, unless the NASCAR fans are the only ones who actually use Sprint/Nextel?
http://news.moneycentral.msn.com/provid ... id=8255456
[quote:8fiuopjv][size=150:8fiuopjv][color=#408000:8fiuopjv]Sprint posts huge loss, scraps dividends [/color:8fiuopjv][/size:8fiuopjv]
February 28, 2008 9:14 AM ET
NEW YORK (Reuters) - [size=150:8fiuopjv]Sprint Nextel Corp posted a $29.45 billion quarterly loss on Thursday [/size:8fiuopjv]due to a huge impairment charge and forecast that subscriber losses will deepen in the first quarter, pushing its shares down 10 percent.
The No. 3 U.S. mobile service also announced that it would stop paying dividends for the "foreseeable future" and Chief Executive Dan Hesse said it would take many quarters to accomplish a turnaround and rebuild Sprint's wireless brand.
[size=150:8fiuopjv]Sprint, which has been losing ground to rivals amid network and customer service problems, forecast that it would lose 1.2 million customers who pay monthly bills in the first quarter, compared with 683,000 such losses in the fourth quarter.[/size:8fiuopjv]
While Sprint had warned last month of continued downward pressure, Stanford Group analyst Michael Nelson said the subscriber outlook was "considerably worse than even most of the bearish estimates out there."
Nelson, who had estimated that Sprint would lose 400,000 valuable post-paid subscribers who pay monthly bills in the first quarter, said investors were also disappointed that the company did not lay out a plan to turn around the business.
"People expected that things were going to be really bad but were hoping they were going to have a game plan of how they're going to fix it," he said.
Instead, [size=150:8fiuopjv]Sprint said it was assessing a reorganization of its business model, and associated sales, distribution and marketing plans. It also said it borrowed $2.5 billion from a revolving credit facility.[/size:8fiuopjv]
"It takes hard work and time to regain a reputation," Hesse, who replaced Gary Forsee as CEO in December, told analysts on a conference call. "To be frank, the issues we face are more difficult than what I expected to find."
Sprint also announced an unlimited calling plan that will be offered beginning on Friday that will cost $99.99 a month, following similar moves by larger rivals AT&T Inc and Verizon Wireless, a venture of Verizon Communications and Vodafone . Analysts have said that these plans could herald a new price war in the industry.
[size=150:8fiuopjv]Sprint's fourth-quarter loss of $10.36 a share compared with earnings of 9 cents a share a year ago, or a net profit of $261 million.[/size:8fiuopjv] Revenue fell 6 percent to $9.8 billion, which compared to the average Wall Street forecast of $9.91 billion.
The company posted earnings excluding items such as a $29.7 billion write-off of goodwill value from Sprint's Nextel Communications purchase of 21 cents per share, which was better than the 18 cents per share forecast by analysts, according to Reuters Estimates.
It forecast first-quarter operating income before depreciation and amortization of $1.8 billion to $1.9 billion.
Post-paid average revenue per user was $58 per month in the fourth quarter, and the company expects that to fall to a little over $56 a month in the first quarter.
[size=150:8fiuopjv]Sprint has lost more than 65 percent of its market value since August 2005, when it bought Nextel.[/size:8fiuopjv]
Its shares fell to $8.00 in early trade after closing at $8.95 on the New York Stock Exchange on Wednesday.
(Reporting by Sinead Carew, editing by Mark Porter)
Copyright 2008 Reuters [/quote:8fiuopjv]
http://news.moneycentral.msn.com/provid ... id=8255456
[quote:8fiuopjv][size=150:8fiuopjv][color=#408000:8fiuopjv]Sprint posts huge loss, scraps dividends [/color:8fiuopjv][/size:8fiuopjv]
February 28, 2008 9:14 AM ET
NEW YORK (Reuters) - [size=150:8fiuopjv]Sprint Nextel Corp posted a $29.45 billion quarterly loss on Thursday [/size:8fiuopjv]due to a huge impairment charge and forecast that subscriber losses will deepen in the first quarter, pushing its shares down 10 percent.
The No. 3 U.S. mobile service also announced that it would stop paying dividends for the "foreseeable future" and Chief Executive Dan Hesse said it would take many quarters to accomplish a turnaround and rebuild Sprint's wireless brand.
[size=150:8fiuopjv]Sprint, which has been losing ground to rivals amid network and customer service problems, forecast that it would lose 1.2 million customers who pay monthly bills in the first quarter, compared with 683,000 such losses in the fourth quarter.[/size:8fiuopjv]
While Sprint had warned last month of continued downward pressure, Stanford Group analyst Michael Nelson said the subscriber outlook was "considerably worse than even most of the bearish estimates out there."
Nelson, who had estimated that Sprint would lose 400,000 valuable post-paid subscribers who pay monthly bills in the first quarter, said investors were also disappointed that the company did not lay out a plan to turn around the business.
"People expected that things were going to be really bad but were hoping they were going to have a game plan of how they're going to fix it," he said.
Instead, [size=150:8fiuopjv]Sprint said it was assessing a reorganization of its business model, and associated sales, distribution and marketing plans. It also said it borrowed $2.5 billion from a revolving credit facility.[/size:8fiuopjv]
"It takes hard work and time to regain a reputation," Hesse, who replaced Gary Forsee as CEO in December, told analysts on a conference call. "To be frank, the issues we face are more difficult than what I expected to find."
Sprint also announced an unlimited calling plan that will be offered beginning on Friday that will cost $99.99 a month, following similar moves by larger rivals AT&T Inc and Verizon Wireless, a venture of Verizon Communications and Vodafone . Analysts have said that these plans could herald a new price war in the industry.
[size=150:8fiuopjv]Sprint's fourth-quarter loss of $10.36 a share compared with earnings of 9 cents a share a year ago, or a net profit of $261 million.[/size:8fiuopjv] Revenue fell 6 percent to $9.8 billion, which compared to the average Wall Street forecast of $9.91 billion.
The company posted earnings excluding items such as a $29.7 billion write-off of goodwill value from Sprint's Nextel Communications purchase of 21 cents per share, which was better than the 18 cents per share forecast by analysts, according to Reuters Estimates.
It forecast first-quarter operating income before depreciation and amortization of $1.8 billion to $1.9 billion.
Post-paid average revenue per user was $58 per month in the fourth quarter, and the company expects that to fall to a little over $56 a month in the first quarter.
[size=150:8fiuopjv]Sprint has lost more than 65 percent of its market value since August 2005, when it bought Nextel.[/size:8fiuopjv]
Its shares fell to $8.00 in early trade after closing at $8.95 on the New York Stock Exchange on Wednesday.
(Reporting by Sinead Carew, editing by Mark Porter)
Copyright 2008 Reuters [/quote:8fiuopjv]
I don't really care about NASCAR, but how the hell do you loose 1,200,000 customers in 3 months? Did the US blowup a Sprint satellite by mistake and screw up the whole Sprint network? That figure is just mind blowing, would be like all GM truck owners simultaneously buying something other than a GM truck.
I don't really care about NASCAR, but how the hell do you loose 1,200,000 customers in 3 months? Did the US blowup a Sprint satellite by mistake and screw up the whole Sprint network? That figure is just mind blowing, [b:29lct4a8]would be like all GM truck owners simulaneously buying something other than a GM truck[/b:29lct4a8].[/quote:29lct4a8]
that is happening too!
I don't really care about NASCAR, [b:1z4bd45t]but how the hell do you loose 1,200,000 customers in 3 months[/b:1z4bd45t]? Did the US blowup a Sprint satellite by mistake and screw up the whole Sprint network? That figure is just mind blowing, would be like all GM truck owners simulaneously buying something other than a GM truck.[/quote:1z4bd45t]
fierce price competition.
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I dont like snoozeCAR either, but hope they continue to have success. Stock cars aint sprint cars, but they are pretty cool just the same.
I say Good Riddance if they fail.[/quote:168ks3so]
Exactly. I switched our company from Nextel way back in the early 90's when they had their two way radio service because it sucked. We tried going back to them when they came out with the walkie-talkie phone service and they sucked too. We have been happy Verizon customers for many years now.
I don't really care about NASCAR, but how the hell do you loose 1,200,000 customers in 3 months? Did the US blowup a Sprint satellite by mistake and screw up the whole Sprint network? That figure is just mind blowing, would be like all GM truck owners simultaneously buying something other than a GM truck.[/quote:3p04lk80]
I spend more time arguing with Sprint about my monthly phone bill then I do actually talking on the phone. When my contract is up I'm gone. I've had Sprint since probably 97.
Then, they go and buy Nextel and I am now back with shitty Sprint. I am leaving as soon as my contract is up and I can and keep my number.
Sprint CS sucks. Ultimately, that is the person(ality), or the driving force of a company. They don't give a crap about me or they would pick up their phone and talk to me - in English that I can understand.
they are contemplating a $60 unlimited call plan to compete with other carriers that have adopted same type of thing, only undercutting them 5 or 10 bucks/month.
I say Good Riddance if they fail.[/quote:31bfxs8n]
this could be said for all cell phone companies. good point.
after dealing with one cell company after another and realizing they are all the same, i actually enjoy seeing them crash and burn.
They "fired" their own customers:
"One of the most frequent complaints levied against wireless provider Sprint is the lengthy waits experienced when calling into its customer service department. Sprint is taking a strong stance and making a major change to solve the problem, though perhaps not in the way you might be expecting. The company has decided to cancel the accounts of subscribers who it feels call customer service too frequently. According to BetaNews, letters were sent out on June 29 to 'problem' subscribers notifying them of the termination of their service, which goes into effect at the end of this month. It's not known how many customers received Sprint's Dear John letter, which read, "The number of inquiries you have made to us during this time has led us to determine that we are unable to meet your current wireless needs."
This move mirrors similar practices by companies like financial services firm ING Direct, which frequently "fires" customers who put too many demands on the company's purposefully limited customer service facilities. However, this is a core aspect of ING Direct: delivering low fees and high returns on investments at the cost of "no frills" account access. Sprint, on the other hand, doesn't exactly offer prices any lower than the competition, nor any other advantages. And, given the fact that Sprint is currently bleeding customers (220,000 lost in the first quarter of 2007), it seems odd the company wouldn't be accommodating to anyone willing to sign one of its contracts.
And here's something else to ponder: If Sprint can charge you a $200 fee for terminating a contract early, why can't you charge Sprint for doing the same?"
I don't really care about NASCAR, but how the hell do you loose 1,200,000 customers in 3 months? Did the US blowup a Sprint satellite by mistake and screw up the whole Sprint network? That figure is just mind blowing, would be like all GM truck owners simultaneously buying something other than a GM truck.[/quote:1fj55x2k]
I-Phone?
Not likely, they have no network they would have to partner with an existing carrier like Apple did. Fancy phones are worthless if you can't provide service.
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