Sprint Nextel has reported net operating revenues of $8.04 billion for the third quarter of 2009, a decrease of 9% compared to $8.82 billion for the same period last year.
Operating income before depreciation and amortisation (OIBDA) was $1.51 billion, a decrease of 17% compared to 1.82 billion for the same period last year. For the quarter ended September 30, 2009, net loss increased by 47% to $478m, compared to $326m for the third quarter of 2008.
Wireless service revenues were down 8% to $6.3 billion, compared to the prior year quarter and decrease of 2% sequentially. The year over year and sequential decline is due to fewer post-paid subscribers, partially offset by more prepaid subscribers.
For the quarter, the wireline revenue was $1.4 billion, a decrease of 10% year over year as voice and data declines more than offset internet revenue growth. Internet revenues for the third quarter of 2009 increased 5% compared to same period last year and were flat sequentially.
Dan Hesse, CEO of Sprint Nextel, said: “The company again generated strong cash flow, and while operating income before depreciation and amortisation (OIBDA) was impacted by costs associated with growth in customer additions, previous quarters’ subscriber losses and certain seasonal costs in the quarter, Sprint continues to manage costs rigorously. We expect to see sequential quarterly improvement in both post-paid and total net subscriber losses in the fourth quarter of 2009.”
The company expects both post-paid and total subscriber net losses to improve sequentially in fourth quarter of 2009 compared to third quarter of 2008. It expects that full-year capital expenditures in 2009 to be less than $1.7 billion.
