Sprint PCS Beats Analysts' Projections

Sprint

Sprint's consolidated operations of its long-distance telephone and wireless communications businesses reported first-quarter earnings of $140 million, compared with a loss of $76 million a year ago. Consolidated revenue rose 8 percent to $6.76 billion.

Sprint FON, which includes local and long distance service, reported operating income of $460 million, down 14 percent from $532 million in the same quarter last year. Excluding losses from the ending of the company's ION broadband effort, operating income for the quarter would have been $466 million, compared to $677 million a year ago.

Sprint FON reported a profit of $286 million, or 32 cents a share, compared with $316 million, or 36 cents per share, a year earlier. Excluding losses from ending ION, the company said FON earned 33 cents a share, 3 cents higher than estimates from Thomson Financial/First Call analysts

The FON group's revenue fell 8 percent to $4.03 billion, compared with $4.36 billion in the same period a year ago.

Sprint chairman and chief executive William Esrey said the company, which has eliminated nearly 11,000 jobs since October, remains "focused on improving the efficiency of our operations enterprise-wide."

The Sprint PCS group reported operating income of $113 million, compared to a loss of $282 million in the same quarter last year. The group reported a net loss of $146 million, or 15 cents a share, compared to a loss of $391 million, or 40 cents a share a year ago. Analysts had predicted a loss of 20 cents a share.

Esrey said the PCS had made progress on three fronts: increasing profitability, adding customers and beginning nationwide third-generation (3G) data services.

This summer, the company plans to be the first U.S. wireless carrier to deliver 3G wireless service nationwide. Revenues for PCS rose from $2.76 billion in the previous quarter to $2.85 billion, as PCS added 725,000 new customers. "Churn," or customer turnover, was 3 percent in the quarter, the same as last quarter.

Shares of Sprint FON fell 78 cents, or 5.5 percent, to $13.47 on Monday. Sprint PCS shares were up 6 cents, or .6 percent, to $10.02.

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