Sprint Losses $29.5 Billion In Fourth Quarter
The news sent Sprint shares down as much as 18% premarket to $7.35, their lowest levels since October 2002. The stock recently traded at $7.88, down 12% from its close Wednesday of $8.95. Sprint, the nation's No. 3 wireless carrier by subscribers, has been losing wireless customers to rivals, while sales have been falling. The Reston, Va., company's problems are said to stem from poor customer service, a reliance on customers who are poor credit risks and a muddled marketing message.
The company's challenges are increasing as its three largest rivals are rolling out plans that charge a flat rate of about $100 for unlimited calling, a significant departure from the traditional model, in which consumers purchase " buckets" of minutes. As a result, Sprint is expected to announce a similar flat rate. Some expected the company to price that rate as low as $60, in order to regain market share. On the company's earnings conference call, Sprint announced a $100 rate for " everything" and $90 plan for voice.
For the quarter ended Dec. 31, Sprint reported a loss of $29.45 billion, or $ 10.36 a share, compared with net income $261 million, or 9 cents a share, a year earlier. Results for Sprint included a $29.7 billion goodwill write-down. money.cnn.com