Sprint Nextel Corporation (NYSE:S) reported net losses of $1.6 billion or 53 cents per share, compared to last year’s losses of $1.4 billion or 46 cents per share. After adjusting for unexpected charges connected with the shutdown of the Nextel network, the company’s losses were 31 cents per share. Revenue increased slightly from $8.84 billion in the second quarter of last year to $8.88 billion this year.
Analysts had been expecting the company to report losses of between 30 and 33 cents on revenue of $8.69 billion for the quarter. Shares of the company’s stock fell as much as 3 percent in premarket trading initially before recovering slightly.
Sprint Nextel breaks down the numbers
Sprint Nextel Corporation (NYSE:S) reported that revenue from its Sprint platform wireless service rose 8 percent to a new record of $7.2 billion. The company also had a record postpaid average revenue per user of $64.20 and reported the 11th consecutive quarter of year over year growth.
Operating losses were $875 million, including $430 million in depreciation and $623 million in charges because of the shutdown of the Nextel network.
Nextel network shut down
Sprint Nextel Corporation (NYSE:S) said the Nextel network was shut down as planned at the end of June, and more than 4 million of its Nextel subscribers have been recaptured and brought over to the Sprint platform since the Network Vision rollout began more than two years ago. This represents a 44 percent postpaid recapture rate, according to the wireless provider.
The company also reported “strong progress” on the deployment of Network Vision as over 20,000 sites are now on the air. That’s a 50 percent increase from the last quarter.
Sprint closes Softbank, Clearwire transactions
During the second quarter of the year, Sprint Nextel Corporation (NYSE:S) also closed three key transactions. The Softbank Corp. (TYO:9984) (PINK:SFTBF) acquisition of 78 percent of Sprint brought shareholders a cash premium, contributed $5 billion in cash and improved the company’s operating scale.
The company expects the closing of the Clearwire transaction to enable it to utilize and integrate 2.5 GHz in spectrum assets. The carrier also added more spectrum from its acquisition of U.S. Cellular, which it believes will increase its network capacity and improve customer experiences in two of its important markets.
Sprint Nextel Corporation (NYSE:S) increased its guidance for its 2013 operating income before depreciation and amortization to between $5.5 billion and $5.7 billion. That’s compared to the previous guidance of between $5.2 billion and $5.5 billion, which did not include the effects of the Softbank and Clearwire transactions, which the company estimates to be worth about $400 million.