Telecommunications firm Sprint Corporation (NYSE: S) reported a net loss for the June quarter, compared to profit last year. The results came in above analysts’ estimates and the company’s stock was up during Friday’s pre-market session.
The Overland Park, Kansas-based company reported a net loss of $111 million or $0.03 per share for the first quarter, compared to a profit of $176 million or $0.04 per share in the corresponding period of last year. Analysts were looking for a slightly wider loss.
Net revenues were broadly flat $8.14 billion. The top-line, however, topped the expectations. Postpaid net additions were 134,000 during the quarter. Total wireless service revenue declined 3% annually.
Net Additions
Net additions of 262,000 in data devices were partially offset by net losses of 128,000 in the phone segment. Postpaid gross additions in digital channels climbed about 50% year-over-year. Meanwhile, average postpaid accounts were broadly unchanged year-over-year.
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“While we delivered good results in the first quarter relative to expectations, the business still faces several structural headwinds and I remain convinced the merger with T-Mobile is the best outcome for our customers, employees, industry and all stakeholders,” said Sprint CEO Michel Combes.
T-Mobile Merger
During the quarter, the company launched voice-to-digital tools that allow customers calling with specific issues to use a digital self-service option The management said it expects to obtain the FCC’s approval for its planned merger with rival telecom firm T-Mobile (TMUS) in the near term.
Shares of Sprint hit a two-year high last month, after gaining 19% since the beginning of the year. In the past twelve months, they grew 28%. The stock closed the previous session lower.