Lately, Sprint has been sharing the limelight with T-Mobile after executives from the two companies announced that they were merging together. Since the merger still has to be approved by the FCC and US DOJ, it’ll take some time before the two actually work together as one company. In the meantime, Sprint unveiled its earnings for Q4 2017 and 2017 fiscal year operating results.
In today’s earnings call, Sprint unveiled that they had the highest annual retail phone net adds in five years. Not to mention, the company reported having the best profit ever with an annual operating income of $ 2.7 billion. It’s also important to point out that the company gained its highest annual net income for the first time since 2006.
For its 2017 fiscal year, Sprint earned 1 million retail phone net adds in its postpaid and prepaid businesses. This number shows an improvement of over 1 million compared to the previous year’s results.
In more detail, Sprint had 606,000 postpaid phone net additions; which marked its third consecutive year of net additions. This allowed the wireless carrier to reach the highest level in six years with their postpaid phone gross additions. In Q4 2017, there were 55,000 postpaid phone net adds.
As for its prepaid sector, there were 363,000 prepaid net additions instead of the 1 million net loss the company incurred last year. This shows an improvement of almost 1.4 million, thanks to Sprint’s Boost Mobile brand. There was a 4.58 percent prepaid churn rate, which was counted as the lowest in three years. During Q4 2017, Sprint had 170,000 prepaid net additions.
Looking at Sprint’s multi-year plan to improve its cost structure, the company showed continuous progress. In fiscal year 2017, Sprint reported around $ 1.1 billion of combined year-over-year reductions in terms of the costs of services and selling, administrative and general expenses. This marks the company’s fourth consecutive year of over $ 1 billion Y-O-Y reductions. The company has been able to reduce its costs to around $ 6 billion over the last four years.
With things looking up for Sprint, the company has once again expressed plans to build a super-reliable, high-capacity mobile network through 5G. Since it has over 160MHz of 2.5 GHz spectrum among the top 100 markets, the company is one of the few operators with enough capacity for operating 5G and LTE at the same time.
Sprint hopes they can launch their first mobile 5G network in the country by Q2 2019.