Sprint, despite being one of the US’ largest carriers has been struggling for the past couple of years. With a network that cannot compete with the large LTE networks of AT&T and Verizon, as well as lower costs and better plans from T-Mobile further hurting the company. As the Q2 results for 2015 arrive however, it appears as though things might be on the mend at Sprint, but it’s not all rosy of course, and with Sprint looking to cut as much as $2 Billion in operating costs during fiscal 2016 it has us wondering how much better than this it could get when we hear the Q3 2015 results.
Overall, Sprint has managed to keep their churn rate (how many customers leave the network for others) to 1.54 percent, which is an improvement of 64 basis points year-over-year. Where new subscribers are concerned, the Sprint platform saw 1.1 Million additions in Q2, a sizeable increase of 80 percent compared to the same period last year. Of that 1.1 Million, 533,000 were Postpaid additions. Talking money, Sprint made $8 Billion in revenue during Q2 2015, a 6 percent decrease year-over-year. Sprint blames customers turning to leasing plans and such for the decreased wireless revenue. The company also posted an operating loss of $585 Million, which is no small figure at the end of the day.
While Sprint has had a fairly good quarter, the company is still losing money. In their press release earlier today, the company writes that they’re looking to turn things around where funding is concerned, and will look to $2 Billion during fiscal 2016. However, Sprint feel confident that they are in a good position for next year and say that “In combination with the aforementioned plans for significant operating expense reductions, Sprint expects the handset leasing company and other upcoming financing structures to sufficiently meet the company’s cash needs for the foreseeable future.” Whether or not all of this pans out remains to be seen, but with T-Mobile holding their UN-carrier X event in Los Angeles shortly, it could mean better deals and more incentives for even more customers to leave Sprint for T-Mobile.