Sprint Nextel today reported first quarter 2010 financial results. The company announced first quarter consolidated net operating revenues of approximately $8.1 billion, a net loss of $865 million. Here are the highlights regarding to wireless customers:
Sprint lost a total of 75,000 net subscribers in the quarter. Driven by the best year-over-year improvement in post-paid gross subscriber additions and the highest prepaid gross subscriber additions in five years, the company achieved the best total company net subscriber results since the third quarter of 2007. Net post-paid subscriber losses improved year-over-year as the company lost 670,000 fewer subscribers than in the first quarter of 2009.
"Our ongoing focus on improving the customer experience, generating cash and strengthening the brand continues to pay off. Customer satisfaction has improved for the ninth consecutive quarter and we generated more than $500 million in Free Cash Flow. The January launch of the award-winning and critically acclaimed Sprint Overdrive TM 3G/4G Mobile Hotspot, the upcoming launch of the world's first 3G/4G Android TM handset, HTC EVO TM 4G, and the introduction of the industry's first true money-back guarantee demonstrate Sprint's innovation," said Dan Hesse, Sprint Nextel CEO.
Beyond the Overdrive and HTC EVO 4G, since the beginning of 2010 Sprint has launched or announced several additional new devices including, Motorola i1, the world's first push-to-talk Android-powered smartphone, and Motorola Brute i680, which combines ultra-rugged durability with the best-in-class push-to-talk services of Nextel Direct Connect. Sprint also announced the latest additions to its growing portfolio of eco-friendly devices - LG Remarq and Samsung Restore, as well as the new BlackBerry Bold 9650 smartphone with multimedia features and international roaming capabilities. Sprint launched the fashionable LG Lotus Elite and LG Rumor Touch, and Boost Mobile launched its first-ever QWERTY clamshell phone, the Sanyo Incognito by Kyocera, and the BlackBerry Curve 8330.
* The company served 48.1 million customers at the end of the first quarter of 2010. This includes 33.4 million post-paid subscribers (26 million on CDMA, 6.8 million on iDEN, and 607,000 Power Source users who utilize both networks), 11 million prepaid subscribers (5.7 million on iDEN and 5.3 million on CDMA) and approximately 3.6 million wholesale and affiliate subscribers, all of whom utilize our CDMA network.
* For the quarter, net wireless customers declined by a total of 75,000, and net retail subscribers declined by approximately 230,000, including net losses of 578,000 post-paid customers.
* The CDMA network lost approximately 131,000 post-paid customers while iDEN lost almost 447,000 customers.
* The company gained a net 348,000 prepaid subscribers, which includes net additions of 392,000 CDMA customers, offset by net losses of 44,000 iDEN customers. The company also gained 155,000 wholesale and affiliate subscribers as a result of renewed subscriber growth in the wireless MVNO business.
* The credit quality of our post-paid customers remained flat year-over-year and sequentially at more than 84% prime.
* Approximately 9% of post-paid customers upgraded their handsets during the first quarter, resulting in continued strength in contract renewals.