The stock price of Sprint Corporation (NYSE:S) surged 10% after the company reported better-than-expected financial results for the first quarter, unveiled its partnerships with Spotify, an internet radio service provider, HTC Corp (TPE:2498), and Harman International Industries Inc./DE/ (NYSE:HAR).
The shares of the third largest carrier in the United States were trading $8.19 per share around 1:29 P.M. in New York on Tuesday.
Sprint Corporation (NYSE:S) reported improved financial results with losses down from $643 million or $0.21 per share in the first quarter last year to $151 million losses or $0.04 per share. Its revenue increased 1% to $8.88 billion. Wall Street analysts expected Sprint to incur $0.09 losses per share in $8.77 billion revenue.
According to the company, it has 54 million subscribers by the end of the first quarter. Sprint Corporation (NYSE:S) said the number of its postpaid subscribers increased 16% year-over-year and its retail smartphone sales were below 5 million, which accounts 84% of its total retail handset sales. The company said it has almost 3 million customers under its Sprint Framily plans, and expects its 4G LTE network to cover 250 million customers by mid-year.
Sprint Corporation (NYSE:S) signed a partnership agreement with internet radio service provider Spotify. Under the partnership, Spotify’s music streaming service will be offered as a bundle to Sprint’s subscribers. A six months free trial will be offered to Framily plan subscribers starting May 9, and after that, subscribers who wants to access Spotify’s premium service will a discounted price of $7.99 or $4.99 per month. The partnership is also offering a three months free trial for other Sprint subscribers and $9.99 per month for the premium service.
In addition, Sprint Corporation (NYSE:S) partnered with HTC Corp (TPE:2498) and Harman International Industries Inc./DE/ (NYSE:HAR) to provide a custom version of the Taiwanese smartphone manufacturer’s HTC One smartphone dubbed as HTC One (M8) Harman Kardon edition.
The device is exclusive to Sprint and features a high-definition audio technology by Harman International Industries Inc./DE/ (NYSE:HAR). The HTC One (M8) Harman Kardon edition will available in the United States on May 9.
Dan Hesse, chief executive officer of Sprint Corporation (NYSE:S) said, “This partnership was made possible by four CEOs who share a passion for music.”