Sprint 8-slides

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GET TO KNOW SPRINT IN JUST 8 SLIDES

Transcript of Sprint 8-slides

Page 1: Sprint 8-slides

GET TO KNOW SPRINT IN JUST 8 SLIDES

Page 2: Sprint 8-slides

What does Sprint do?

Sprint is the fourth-largest wireless carrier in the U.S., based on subscriber numbers. The carrier sells cellular voice and data plans for phones and tablets, as well as cellular service for wearable devices and mobile hotspots. The carrier also offers its services under the Virgin Mobile, Boost Mobile, and Assurance Wireless brands, and is a subsidiary of SoftBank Group. Image source: Sprint.

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Cellular subscribers: As a wireless carrier, Sprint’s primary focus is gaining subscribers. The carrier has had some major subscribers losses over the past few years, but has recently started moving in the right direction. Unfortunately, those earlier losses helped T-Mobile overtake Sprint as the nation’s third-largest carrier.

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Data source: Sprint SEC filings.

Sprint’s key segments

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Revenue per user: Like all other wireless carriers, Sprint is also focused on its average revenue per user, or ARPU. In Q3 2015, Sprint’s ARPU was $45.04, compared to rival T-Mobile’s $43.45.

Sprint’s key segments

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Source: Strategy Analytics.

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While Sprint’s lost plenty of subscribers over the past few years, the carrier’s network still ranks above T-Mobile in overall network performance and slightly trails AT&T, according to the latest data from RootMetrics.

Sprint’s network performance

Source: RootMetrics.

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How Sprint performed in the most recent quarter

• Net operating revenue of $8 billion, down 6% year over year.• Net loss of $585 million, or $0.15 per share, compared to

a net loss of $765 million in the year-ago period.• Net subscriber growth of 1.1 million, an increase of 80%

year over year.• Postpaid churn rate fell to 1.54%, an improvement of 64

basis points, year over year.

Q3 2015

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How Sprint is expanding

The carrier is making subscriber gains, in part, with a promotional offer that allows T-Mobile, AT&T, and Verizon customers to keep the same voice and data plan that they have, but cut the cost of their bill in half if they switch to Sprint.

Image source: T-Mobile.

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How Sprint is expanding

In the most recent quarter, Sprint achieved positive postpaid phone net additions for the first time in over two years, and reported a record low for postpaid churn.

Image source: Sprint.

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Potential trouble spots

T-Mobile’s aggressive subscriber growth over the past few years has come at the expense of Sprint, and that’s likely to continue. Additionally, when Sprint upgraded its LTE network a few years ago, its customers experienced frequent outages that continues to hurt the carrier’s perceived network reputation. Image source: Sprint.

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