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Sprint Quarter Mixed, Subscribers Up, Growth Slower

Sprint continued a turbulent ride during its third quarter posting mixed growth and financial results.

The No. 4 wireless carrier in the country added 491,000 net subscribers during the last three months of 2015, which was half the growth for the same period in 2014.

However, the most recent growth, in Sprint’s fiscal third quarter, was led by more than a half million net additions for its more financially lucrative connections that are postpaid , which are significantly more than during previous reporting periods. In addition, they included more than 366,000 postpaid smartphone connections.

Holding the overall growth back in connections was a loss of more than 491,000 prepaid customers across the just ended quarter in comparison with a net gain of 410,000 prepaid subscribers during the same quarter in 2014.

Sprint reported as well that its affiliate and wholesale partners had added net connections of over 481,000 during its third quarter, which was down just slightly from the year before.

Overall, Sprint had close to 58.4 million connections in all for 2015 on its complete network compared to 59.8 million at the end of 2014.

Quarterly growth of customers trailed Verizon Wireless which pasted 1.4 million new retail customers and T-Mobile US that posted over 2.1 million total connections.

Results of customer churn were mixed, as churn in postpaid plunged to 1.62% from 2.3%, while prepaid churn surged compared to 2014 from 3.94% to 5.82%.

Financially, Sprint reported that there had been $6.42 less spending each month per connection for postpaid during its last quarter, dropping to $52.47.

Prepaid clients spent on average 32 cents additional per month or $27.44 during the last three months of 2015.

Overall revenues throughout the organization fell by close to 10% compared to the same period one year ago to $8.1 billion during its fiscal third quarter, as both equipment and service revenues took a hit.

However, during the same period, Sprint cut its operating expense by over $3 billion, which helped to slash its net losses during the three-month period from $2.4 billion during 2014 to a loss of $836 million at the end of 2015.

Sprint’s investors seemed to be impressed with the latest results of the carrier as its stock was trading 10% higher early Tuesday having hit a low last week of 52 weeks.

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