Sprint Nextel Swings to a Loss as Subscribers Defect
The Sprint Nextel Corporation lost another 1.3 million wireless subscribers to its competitors during the third quarter, leading the company to post a loss that sent its stock skidding Friday. Daniel R. Hesse, Sprint’s chief executive, told analysts that Sprint Nextel plans to work harder to attract new customers during the coming holiday season but acknowledged, “We have yet to turn the corner.” “We made good progress on our operational priorities in the third quarter and resolved some key issues,” he said. “Still, subscriber losses are too high.” Sprint, the nation’s third-largest wireless provider, said it lost $326 million, or 11 cents a share, for the three months ending Sept. 30. It earned $64 million, or 2 cents a share, in the comparable period a year ago. Also Friday, Sprint Nextel said it had changed the terms of its credit agreement, reducing the amount it can borrow to $4.5 billion, from $6 billion, but increasing the allowed debt ratio to 4.25 times earnings before taxes and other adjustments, up from 3.5 under the previous deal. Sprint also said it repaid $1 billion of the outstanding loan under the amended credit agreement. Sprint Nextel ranks behind AT&T and Verizon Wireless with 50.5 million customers.
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