Sprint Loses $29.5 Billion
February 28th, 2008Can you hear me now?
Via: Bloomberg:
Sprint Nextel Corp., the third- biggest U.S. wireless carrier, posted a $29.5 billion loss and will eliminate its dividend as customers defected and it wrote down the value of the purchase of Nextel Communications Inc.
The fourth-quarter net loss was $10.36 a share, compared with net income of $261 million, or 9 cents, a year ago, Sprint said today. Sales fell 5.7 percent to $9.85 billion, missing the $9.93 billion average estimate of analysts.
Sprint lost 683,000 contract subscribers last quarter amid complaints of dropped calls and poor service. Chief Executive Officer Dan Hesse, who took over in December, may be forced to undercut price reductions at AT&T and Verizon Wireless, which began offering plans last week for unlimited mobile calling for $99.99 a month.
