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Sprint saw big number of postpaid additions but revenues were flat

Staff Writer | July 26, 2016
Sprint Corporation reported results for the first quarter of fiscal year 2016. There were the highest fiscal first quarter postpaid phone net additions in nine years.
Sprint   The 185,000 year-over-year improvement
This is including the lowest postpaid phone churn in company history at 1.39 percent and a total liquidity position of nearly $11 billion.

The company also reported total net operating revenues of $8 billion, net loss of $302 million, operating income of $361 million, and Adjusted EBITDA of $2.5 billion.

There were the highest fiscal first quarter postpaid phone net additions in nine years and the fourth consecutive quarter of positive net additions with 173,000 in the quarter compared to net losses of 12,000 in the prior year quarter.

The 185,000 year-over-year improvement was driven by both better acquisition and retention, as postpaid phone gross additions were up 10 percent year-over-year and postpaid phone churn of 1.39 percent improved 10 basis points to reach the lowest level in company history. Postpaid phone churn has improved year-over-year for six consecutive quarters.

Sprint reported total net operating revenues that were flat to the prior year quarter for the first time in over two years.

In addition, wireless net operating revenues grew 1 percent year-over-year and postpaid wireless service revenues have remained at $4.8 billion for the last three quarters.

Sprint also made considerable progress in its ongoing effort to transform the cost structure of the business, as the company realized over $550 million year-over-year reduction in cost of services and selling, general and administrative (SG&A) expenses.

The company remains on track to achieve its goal of a sustainable reduction of $2 billion or more of run rate operating expenses exiting fiscal year 2016.