Sprint lost nearly half a billion dollars in the third quarter

October 29, 2009 – 11:12 am – No Comment

Sprint can’t keep itself from hemorrhaging money as well as customers. The nation’s third largest retailer announced their third quarter earnings and they obviously weren’t too great.

As subscribers dropped the carrier, it found itself losing $478 million, 17 cents per share. This is a greater loss than the company saw in the third quarter last year of $326 million, or 11 cents per share.

The loss the company had was greater than what analysts were expecting. The majority were expecting an average loss of 15 cents per share.

The net operating revenue for the company was also down to $8.04 billion. This represents a 9 percent drop from the $8.82 billion it was making last year during the same quarter.

So, where did the money go? I would guess it followed the 545,000 wireless customers it lost during the last quarter alone. The company actually lost 801,000 post paid Sprint subscribers, but 801,000 signed up for its Boost Mobile prepaid service.

When the dust settled, Sprint was left with 48.3 million subscribers. There is a pretty large gap between Sprint and its next biggest competitor; AT&T Wireless (which currently has over 80 million subscribers. However, it is still ahead of the smaller T-Mobile cellular provider with just over 32.8 million customers.

It’s not all bad news for the company, however. In its earning statement for the third quarter, Sprint also talked about how it has had improvement in customer care satisfaction for the past 7 consecutive quarters as well as opening its 4G network to 17 different markets, and it has launched (and will be launching) 16 new touchscreen, full keyboard smart phones.

In my honest opinion, Sprint has bent over backwards to keep a lot of their subscribers happy. I don’t know what they’re doing to lose so many subscribers, but I would imagine it has something to do with the company’s phone lineup. I can’t imagine it being the actual network because (at least in my opinion) the service is great anywhere I go. I even had reception in a basement on the college campus near me while my friend with an iPhone did not.