Sprint Posts Q1 of Fiscal Year 2014 Results: $23 Million of Net Income, Operating Income of $519 Million

Sprint’s earnings a bit different than mostly everyone else’s. Everyone else is reporting Q2 results this time of year, while Sprint is doing Q1 of Fiscal year 2014. So that may be a bit confusing. But what isn’t confusing is the rest of the numbers – well they still might be. But Sprint has posted an Operating Income of $519 million. Which Sprint says it’s the best number they’ve posted in seven years. Additionally, net income is $23 million. Sprint’s platform (that includes both prepaid and postpaid) lost around 220,000 customers. That’s actually a pretty good number compared to the 383,000 last quarter and 520,000 a year ago. 181,000 of those were due to the interruption in service, during Sprint’s network overhaul, says the company. Sprint also says they sold nearly 5 million smartphones in the quarter, and now have around 53 million customers across all of their brands, or the entire Sprint platform.

“We reached several key milestones for the company this quarter, including largely completing a multi-year project to upgrade our core 3G and voice network, expanding 4G LTE coverage to approximately 254 million people and launching nationwide availability of HD Voice,” said Dan Hesse, Sprint CEO. “Our complete network replacement impacted the network experience, so we lost customers last quarter. To improve customer confidence given our recent network build progress, we launched the Sprint Satisfaction Guarantee, which invites customers to experience our new and improved network and enjoy the value of our Sprint Framily plans.”

As of June 30th, 2014, Sprint has 29,737,000 customers on Postpaid plans, 14,715,000 on prepaid plans and 8,879,000 on Wholesale and Affiliate plans. Which brings the total to 53,331,000. It’s also worth noting that Sprint’s ARPU (Average Revenue Per User) dropped on postpaid plans and increased on prepaid plans. For the first quarter of fiscal 2014, postpaid ARPU was $62.07, compared to $63.52. With prepaid being $27.38, compared to $26.45 last quarter. So this shows us that prepaid really is booming.

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