Sprint CEO Dan Hesse

Sprint has released its Q3 2012 earnings today, and things aren't looking too great. Right off the top, Sprint posted a $767 million net loss for the quarter on $7.3 billion in revenues. That's an increase in losses from the previous year, where Sprint only lost $301 million. Revenues, fortunately, are up 6-percent year-over-year.

Now onto the good (or at least better) news. A large portion of this quarter's losses can be blamed on accelerated depreciation of assets mostly related to Sprint's "Network Vision" project. On the customer side, Sprint postpaid subscriber numbers were up (for the 10th consecutive quarter), and churn was down. It also noted that the carrier surpassed the 1 million LTE smartphone sales number prior to the iPhone 5 launching, which Sprint sold nearly 1.5 million of.

You can take a look at the full press release at the source link below.

Source: Sprint Newsroom

 
There are 24 comments

mike340t says:

does he have a better pic? Always looks tired..Maybe a smile? lol

Jayshmay says:

Holy s**t!!!!! 3 quarters of a billion!!!

Dang! It seems like nothing Sprint does is right.

That is what they get for cutting corners. Wimax instead of the more obvious emerging LTE? Check. Lightsquared? Check. Slow as hell 3G to begin with? Check. Dropping premium features to so existing customers wonder why the hell they are sticking around? Check.

Floss82 says:

Haha dang Sprint.... LTE and pretty high end devices and you still take a lost like this..... no good!

cowboys2000 says:

Folks,

Remember Dan Hesse and Sprint committed huge to Apple to get the Iphone. Each sale represents a huge subsidy that Sprint eats up front (like $200-300 a phone). This was done to keep existing users and to bring in new users.

I have not seen the reported financials, but I would like to see what the loss/profit is without "depreciation". Depreciation is an Accounting way to allocate costs that were already spent in the past for future benefit. Taking the write-down sooner, will help the bottom line faster.

Semli says:

Due to their garbage 3G speeds they're gonna lose me as a customer soon. Another tiny drop in the bucket.

I have no problem with their voice service but their data speed is absolutely horrendous. I could deal with it if it was just slower than the competition (given that it's still unlimited) but it feels like dial-up most of the time. I've been off contract since Dec '11 and been contemplating jumping ship to Verizon. Just waiting to see what's coming out. Came close to just getting a Galaxy S3 or Nexus but I've put if off this long that a short while more won't hurt.

Don't see the point of unlimited data when it's so slow as to be barely useable.

prlundberg says:

Agreed. When I check my 3G speeds I'm usually around 40-60K, which is dial-up speed. Sometimes I can hit as high as 120K. But almost never more than that.

ro1224 says:

That's like warp speed compared to what I've been getting for months (My 3G is usually under 0.10 Down and 0.40 Up). That said things are starting to get better, so I'll take this as a sign that Network Vision is starting to get its act together. Oh, yeah, and they flipped the switch on 4G, so when its available in my area I'm getting 10Mbps down and 7-8 Up. Not Verizon level but it helps.

ro1224 says:

Don't know if this helps your situation, but I contacted the Executive Team (dan@sprint.com) and was setup with a free AIRAVE. This device has made the difference between 1 bar and full-signal at home. The device is giving me an opportunity to use my phone at home when it was very difficult to do so before. Of course, it doesn't help when traveling mostly because it needs to connect to a DSL or broadband internet. I figured this would provide temporary help until Sprint gets their Network Vision issues sorted out in my area.

DWR_31 says:

Since the AIRAVE uses broadband, why not just turned on WiFi for data and Google Voice for calls over WiFi.

DavidJ726 says:

Sprint may be behind the others for now in regards to the LTE buildout, but to have a company like softback invest so heavily in Sprint, that has to be a good sign. With that much investment capital, Sprint's LTE buildout will certainly improve. I'm still betting on Sprint!

smsgator says:

Softbank, not softback.

Just look what they did after they bought Comdex from Sheldon Adelson's company. Adelson certainly knew when to sell Comdex to invest more money in casinos.

Not sure anything can fix Sprint at this point. They have no one to merge with either. T-Mobile suffers from the same issues as Sprint. Too few subscribers are willing to put up with a sub-par network in order to have a lower price. Those that are price sensitive are already on StraightTalk on either an AT&T or Verizon smart phone, or on MetroPCS (well that will soon be part of T-Mobile).

Blendercloud says:

With companies like this that have to spend a lot on infrastructure to do business it is fairly normal to see them take large losses when they change business directions (WiMax to LTE). Taking the accelerated depreciation of assets this quarter/year will help their after tax earnings in the future as well. The numbers just make it look worse than it is.

sURFNmADNESS says:

Know a lot of my friends are ready to jump to Sprint however 4G not due for Omaha till late next year. They will not jump before per the 3G here is terrible.

staticK78 says:

This doesn't surprise me one bit. I guarantee if they'd make a serious over hall in R & D, focusing on what the customers REALLY want, they'd fare far better...& make a lot of customers happy.

Dude. They are. The problem is when you talk about nation wide network rollouts that crap is expensive. Add to the fact that Sprint has been playing it cheap. Wimax was a cheaper tech to implement....fell through. They backed lightsquared.....fell through. They are eating a metric ton on every Godphone sold....how many customers has that really brought in?

Then you have non-phone devices being thrown on their already overloaded network all to try and stay afloat with additional sales while they back peddle and try and get LTE rolled out. Meanwhile all those wimax phones are useless on the new network. Seriously. Sprint is the epitome of America and the Walmart mentality. Where you think just because you get something super cheap its a deal. Its not a deal when what you are buying is crap. The old axiom has never been truer: You get what you pay for. Something Sprint should learn.

staticK78 says:

Apparently you haven't been paying attention to anything Sprint has been doing. Instead of puting their main focus on development and release of software updates, they are developing and releasing these half-assed applications that noone in their right mind is gonna use, not to mention putting a price tag on them when there are already more advanced and useful apps in the market for free. They DO NOT have their priorities straight. Do a quick glance at their phone lineup...the majority of their so-called Android based phones are running software that's more than 1.5 years out of date...and that's on NEW phones.

smsgator says:

Don't insult Walmart like that.

At least you can walk into Walmart and buy a StraightTalk phone that uses either Verizon or AT&T (as well as ones on Sprint), and be cheap but get good coverage at the same time.

demontooth says:

My speeds here have went to shit. I don't understand why it's going downhill.

Overloaded network. Sprint: The Anyday Now Network.

*shrugs* They lost me in June to Verizon. Which was more expensive by $10 and only 4GB per month, but well worth the switch. I've never been happier with a carrier. Verizon may very well be the douchebag of the carrier world, but they are damn fast douchbags.

Rob White says:

Couldn't agree more. Verizon is expensive & damn near overbearing. But you get what you pay for. All the B.S. over CDMA vs GSM really amounts to nothing if you can't make a damn phone call. Which come to find out, these are smart PHONES right? Who'd have thunk it!

smsgator says:

Verizon understands that they don't have to discount their product to gain subscribers. They aren't going after the T-Mobile, MetroPCS, or Sprint customers by competing on price. It reminds me of the comedian who had a parody on the oil companies serious TV ads: "we're here to explain the law of supply and demand; we have all the supply, so we can demand whatever the $%^% we want."

donnie623 says:

I switched from Verizon last year and couldn't be happier. It's really about where you live. Sprint has a strong network in my location. Used to get 1mb down after their network upgrade its 2.5mb down. Their LTE is putting out 23mb down for me and it's UNLIMITED! I am extremely happy with them and it's only getting better. My Verizon friends are always checking their data usage, makes me laugh.