Sprint loss widens despite data revenue growth

Sprint Nextel said it may sell some assets after first-quarter net losses expanded to $505 million, compared to losses of $211 million a year ago; the operator is also hemorrhaging subscribers, with Q1 defections totaling 1.09 million. First-quarter revenues of $8 billion represented a 9 percent decline compared to the year-ago period and a 6 percent fall from the fourth quarter of 2007. Sprint's wireless business claimed 52.8 million total subscribers at the end of Q1, a decline the firm said reflects a smaller post-paid and affiliate base, partially offset by increases in prepaid and wholesale. Postpaid churn came in at 2.45 percent compared to 2.3 percent in both Q1 and Q4 of 2007--wireless ARPU slumped to $56, a 6 percent decline over year-ago totals and a 4 percent sequential decline.

Sprint said data growth partially offset declining voice revenue, with data contributing more than $11.50 to overall postpaid ARPU in the first quarter and more than $14--roughly one quarter--of CDMA ARPU. Sprint credits overall year-over-year data growth of 19 percent to strong sales of aircards and demand for messaging services. Forecasting only marginal improvements in the current quarter, Sprint said it may seek waivers or amendments from its creditors, but believes enough cash is in its coffers to continue operations and repay all its maturing debts through the end of 2009.

For more on Sprint's Q1 debacle:
- read this release

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