Earnings: Sprint Posts $326 Million Loss As Customer Exodus Continues

This story was written by Dianne See Morrison.
Sprint (NYSE: S) Nextel reported a third quarter loss of $326 million on revenues of $8.81 billion, as 1.3 million customers, which fled the troubled carrier. The loss amounts to 11 cents a share, far below analyst expectations of three cents a share profit. Sales also failed to meet forecasts, slated at $8.85 billion. More troubling for the carrier, was its rising churn rate. It looked as if in Q2 it had managed at least to slow the number of customers leaving it. But this quarter's churn was up, coming in at just under 2.15 percent, 2 percent in Q2. Sprint also announced today that it had renegotiated its credit agreements to avoid the risk of default, paying down $1.0 billion in outstanding debt. Full details on mocoNews.net

By Dianne See Morrison
The all new
CBS News App for Android® for iPad® for iPhone®
Fully redesigned. Featuring CBSN, 24/7 live news. Get the App