Sprint released its fourth quarter earnings this morning, and while the company still had a financial loss, the future is looking at least a bit brighter for the Now Network.
Bolstered by the addition of the iPhone to its product lineup, Sprint saw some healthy sales in the fourth quarter of 2011.
Strong revenue growth and cost management partially offset the impact of increased equipment net subsidies and sales expense associated with the successful launch of the iPhone. Forty percent of Sprint’s 1.8 million iPhone sales in the fourth quarter were to new customers.
Sprint saw a net subscriber gain of 1.6 million in the fourth quarter, it’s best time period for customer growth in six years. Thanks to these additions the Now Network now has largest user base ever at over 55 million subscribers.
The downside of customer growth such as this is the initial impact on the balance sheet from having to subsidize the sales of new equipment. Sprint lost 35 cents a share for the quarter, but that came in under analysts predictions of 38 cents.
Dan Hesse, CEO of Sprint, was very upbeat about the overall year saying, During the past year, Sprint added more than 5 million net new customers and grew wireless service revenue by more than 5 percent, including 17 percent for the Sprint platform. This momentum gives us confidence as we execute our Network Vision upgrade and 4G LTE roll-out.”
While Sprint is still in third place amongst the four major carriers in the U.S., things are certainly looking at least a little brighter for the Overland Park, KS-based company.