Sprint Corp. on Wednesday reported a huge jump in profits for the second quarter as the telecommunications company reported a strong revenue increase in its wireless services.
The Overland Park, Kan., company reported net income for the quarter ended June 30 of $233 million, compared with $7 million for the same period a year ago. Earnings based on generally accepted accounting principles were 16 cents a share, compared with break-even a year ago.
Revenues increased by 6.3 percent to $6.87 billion from $6.46 billion. Wireless posted a year-over-year revenue growth of 17 percent, while net operating revenue from local phone services were down 1 percent. Long-distance revenue declined 7 percent.
"Sprint continues to successfully execute its transformation agenda," Gary Forsee, chairman and chief executive of the company, said in a statement. "Led by outstanding performance in wireless, which produced its first $1 billion quarterly adjusted EBITDA (earnings before interest taxes, depreciation and amortization), we generated strong cash flows and improved our balance sheet."
Sprint raised its forecast for full-year adjusted earnings per share to 74 cents to 78 cents, compared with its previous estimate of 70 cents to 75 cents. Wireless revenue is expected to increase at a double-digit rate, while local revenue is projected to dip in the low-single-digit rate. Long distance revenue is forecast to fall in the "very high" single-digit rate.
Discover the benefits of scalable backbone and network services for application and cloud providers.
Network automation is gaining momentum. Here's how you can drive this powerful technology to its full potential.
Subsea cable alternatives can provide a level of comfort for those concerned about disruptions. Realistically, they will continue to play a small, but critical role in the short term.
