Feeds

Razr cuts deep into Sprint Nextel

Q2 profits slump

Internet Security Threat Report 2014

Sprint Nextel blames merger and disposal costs for a slump in Q2 profits. It also acknowledges lower than expected subscriber growth for the quarter.

The US cellco claimed 210,000 new contract customers in the quarter, rather worse than analysts had anticipated. It also signed up 498,000 cheapo pre-paids through its Burst brand during the quarter.

Q2 net income was $370m, or 12 cents a share, a big fall on Q2 2005's net income of $600m, or 40 cents a share. Q2 revenues was $10bn, up from $5.6bn last year, thanks to the inclusion of Nextel revenues.

The company is losing market share because it has a poor handset line-up, according to Christopher King, an analyst with Stifel, Nicolaus & Co. "They don't have the [Motorola] Razr," he told Bloomberg. "It's been an extremely popular product that has changed the landscape of the industry."

Sprint Nextel workers could be in for a bumpy time ahead. The company aims to squeeze out even more costs, post-merger, in response to slower near-term growth projections. Sales, marketing and distribution activities are to be subject to re-organisation, which should produce savings equivalent to 7c a share. This comes on top of the synergy savings the firm expects from last year's merger between Sprint and Nextel. ®

Related link

Sprint release

Business security measures using SSL

More from The Register

next story
Brit telcos warn Scots that voting Yes could lead to HEFTY bills
BT and Co: Independence vote likely to mean 'increased costs'
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
New 'Cosmos' browser surfs the net by TXT alone
No data plan? No WiFi? No worries ... except sluggish download speed
Radio hams can encrypt, in emergencies, says Ofcom
Consultation promises new spectrum and hints at relaxed licence conditions
Blockbuster book lays out the first 20 years of the Smartphone Wars
Symbian's David Wood bares all. Not for the faint hearted
Bonking with Apple has POUNDED mobe operators' wallets
... into submission. Weve squeals, ditches payment plans
This flashlight app requires: Your contacts list, identity, access to your camera...
Who us, dodgy? Vast majority of mobile apps fail privacy test
Apple Watch will CONQUER smartwatch world – analysts
After Applelocalypse, other wristputers will get stuck in
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
WIN a very cool portable ZX Spectrum
Win a one-off portable Spectrum built by legendary hardware hacker Ben Heck
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Security and trust: The backbone of doing business over the internet
Explores the current state of website security and the contributions Symantec is making to help organizations protect critical data and build trust with customers.