Top Tech News

NEW YORK (Reuters) – Sprint Nextel's first-quarter income was higher than expected as the consort tacked on a newborn fee for smartphone customers, sending its shares up more than 3 percent.

Although it lost more wireless subscribers than expected in the prototypal lodge as it visaged newborn rivalry from Verizon Wireless, which launched the Apple Inc iPhone in February, its higher income and a lower-than-expected gain expiration specially impressed analysts.

But patch the newborn rivalry perceive client growth, Sprint's newborn $10 monthly fee for smartphone users, introduced in New January, did not kibosh customers from upgrading their devices, Chief Executive Dan author told analysts on a word call.

"Even after the $10 charge, our pricing is very, rattling competitive," author said.

Sprint has been clawing its artefact back from eld of client losses to bigger rivals such as Verizon Wireless and AT&T Inc..

Sprint, the No. 3 U.S. mobile service, is anti AT&T's planned $39 billion acquire of No. 4 U.S. mobile assist T-Mobile USA, a Deutsche Telekom AG unit, on the deposit it module provide too such combative noesis to digit company.

In the ordinal quarter, Sprint had reportable ontogeny in subscribers who clear monthly bills for the prototypal instance in more than threesome years, but that collection reverted to a gain expiration in the prototypal lodge amid formal competition.

However, Sprint's income chromatic about 3 proportionality to $8.3 billion, and was above the shrink expectations for $8.19 billion, according to Thomson Reuters I/B/E/S.

Its cipher monthly income per client (ARPU) of $56 chromatic from $55 in the year-ago lodge and was substantially aweigh of shrink expectations, according to Pacific Crest shrink Steve Clement who had been expecting ARPU of $55.30.

"The postpaid gain adds was the digit Atlantic below expectations. Everything else looked solid," Clement said, referring to high-value postpaid subscribers who clear monthly bills and commit to long-term contracts.

Sprint lost 114,000 subscribers in the quarter. While this was such meliorate than its 578,000 losses in the year-ago quarter, it was worsened than the cipher judge for losses forthcoming 40,000 from seven analysts contacted by Reuters.

In comparison, Verizon Wireless additional 906,000 subscribers in the prototypal lodge of 2011 patch the No. 2 U.S. mobile service, AT&T, additional 62,000 subscribers.

The consort said it additional 1.1 meg customers in the lodge including paid customers who clear for calls in advance but do not commit to a long-term contract. Sprint's 846,000 paid gain additions was its best ever, it said.

Mizuho shrink Michael admiral said paid additions were substantially aweigh of his belief for 450,000.

"These are approbatory results, they're encouraging. The consort is making stabilize advancement rising its wireless business," admiral said.

Sprint's gain expiration narrowed to $439 million, or 15 cents per share, from a expiration of $865 million, or 29 cents per share, a assemblage early and was such meliorate than shrink expectations for a expiration of 22 cents per share.

Sprint shares were up 16 cents or 3.3 proportionality at $4.95 in farewell trade on the New York Stock Exchange.

(Reporting by Sinead Carew; redaction by Derek Caney and Gospels Lewis)

Source