Subscribers up, costs down, operational profit within sight. That’s the good story for Sprint.
As a result of accelerated cost reductions, Sprint has raised its guidance for fiscal year 2015 adjusted earnings from its previous expectation of $6.8 billion to $7.1 billion to a range of $7.7 billion to $8 billion.
Sprint also is raising its guidance for fiscal year 2015 operating income from its previous expectation of an operating loss of $50 million to $250 million to operating income of $100 million to $300 million.
Sprint’s preliminary estimate for fiscal year 2016 adjusted earnings is $9.5 billion to $10 billion.
For its third fiscal quarter of 2015, Sprint reported growth in postpaid phone customers for the second consecutive quarter with the highest net additions in three years at 366,000, the lowest-ever postpaid churn for a third quarter at 1.62 percent, and the highest postpaid net ports on record.
The company also reported net operating revenue of $8.1 billion, an operating loss of $197 million, and adjusted EBITDA of $1.9 billion
Net operating revenues of $8.1 billion decreased 10 percent year-over-year, but stabilized over the last three quarters, and grew two percent sequentially, said Sprint.
Consolidated adjusted EBITDA of $1.9 billion improved from the prior year period, as expense reductions more than offset the decline in operating revenues.
Total expenses improved primarily because of lower cost of product expenses related to device leasing options for which the associated cost is recorded as depreciation expense, and $500 million of lower selling, general, and administrative expenses.