Sprint Nextel Corp.’s second-quarter loss widened as overall subscribership fell and the company booked a $302 million tax-related charge.
Still, shares jumped 5.4 percent in premarket trading to $5.09. As of Tuesday’s close, the stock had risen 32 percent this year.
The third-biggest wireless carrier in the U.S., behind Verizon Wireless and AT&T Inc., lost 228,000 post-paid subscribers and added 173,000 pre-paid customers for the quarter. Sprint’s total customer base, made up of pre-paid and post-paid subscribers, is 48.2 million.
The company has had problems keeping its post-paid customers, as they have left by the millions the last several years. Sprint’s prepaid business has been a bright spot, though, showing continued strong growth. Sprint has pinned its post-paid hopes on the rollout of its 4G network quicker than any other U.S. carrier, and its first device to run on the super-fast network, the Evo 4G, has exceeded supply.
Sprint reported a loss of $760 million, or 25 cents a share, from a year-earlier loss of $384 million, or 13 cents a share. The most-recent quarter included a 10-cent charge related to the increase in valuation allowance on deferred tax assets.
Revenue fell 1.4 percent, to $8.03 billion.
Analysts polled by Thomson Reuters had most recently forecast a loss of 20 cents, on $8.03 billion in revenue. Some analysts had backed out the tax charge from their expectations while others didn’t.
The company said its churn, or the percentage of customers who cancel service, was a best-ever 1.85 percent in its post-paid business and 5.61 percent in its prepaid business, down from 2.05 percent and 6.38 percent, respectively, a year earlier.
I am one of the most well-known wireless leaders in Northern California providing wireless solutions for corporate accounts. The difference between my company and everyone else is my exceptional vision and leadership especially on the B2B side. Without sacrificing quality, integrity, and customer service, my abilities have gained me the knowledge and expertise to win numerous awards including top seller award for Northern California from a variety of wireless carriers. Having said that, I was approached by Nextel in 2002 to become one of theirMark Sadighian, Paul Harris, and Dennis McSweeney no longer shared the vision that Nextel had with my company. At the same time I found out that my partner was embezzling money and started a new wireless company with another carrier. When I approached Mark Sadighian with my new found news, the advise that I received was to separate our partnership and for me to start a new company under a new name. I was granted an exclusive dealer contract with Sprint/Nextel and their service center. Two months into my new company, I submitted six new retail locations that were denied to me for expansion, but at the same time were handed to someone else. Sprint/Nextel set me up for failure, after I invested hundred of thousands of dollars into the new company. Sprint/Nextel decided at that point not to support me in my visions, ideas, and ventures. As a result, I am seeking other dealers that have had a similar experience as me for a class action lawsuit. Before I posted my story online, I requested the immediate assistance from the CEO of Sprint, Daniel Hesse. He never responded to any of my emails, and at this point left me with no choice, but to put together a class action lawsuit for Authorized Dealers. I will not stop until my losses are compensated. If you are interested in contacting me with any questions, concerns, or to assist me in participating in this class action lawsuit please email me at: or visit http://www.nextel.bzsprintactionlawsuit@gmail.com This e-mail address is being protected from spambots. You need JavaScript enabled to view it B2B Authorized Representatives as a result of my success from previous years. With my exceeding success through the B2B channel, Nextel approached me to do a joint venture on launching new retail locations in the Northern California market since there was no strong retail presence. With knowledge, experience, and expertise I put together one of the most dynamic teams of highly motivated and well qualified communication consultants. In 2003, my ex-colleague and dear friend was invited to join in this new vision. I launched eight locations in Northern California and I was invited to launch new locations in Arizona, Colorado, and Minnesota. In 2005, when the merger with Sprint occurred, the new management team: Call 740-9NEXTEL e-Mail sprintactionlawsuit@gmail.com