Sprint Meets Analysts' Estimates For Second Quarter Earnings
March 28, 2011
Westside -- Long-distance phone company Sprint Corp. said Tuesday it met analysts' estimates for second-quarter net income on a 12% increase in revenue. Sprint said its second-quarter profit came to $316.8 million, or 73 cents a share, compared with $245.7 million, or 70 cents a share, in the year-earlier period. Revenue increased to $3.5 billion from $3.14 billion. The mean estimate of analysts surveyed by First Call Inc. was for net income of around 73 cents per share. The company said its long-distance operations produced second-quarter earnings of $235 million, an increase of 39% from a year ago. Long-distance revenue increased 16% to $2.05 billion. In local-telephone operations, Sprint said earnings of $328 million represented an increase of 21% from a year ago. Local-services revenue increased 9%. Sprint said its operating cash flow was $978 million, up 19% from a year ago. Minutes of use in the long-distance business rose 19% from a year ago. The latest results include charges associated with the January launch of its Global One and Sprint Spectrum ventures totaling $44 million, or 10 cents a share. The year-ago period includes a charge of two cents a share. Sprint Spectrum L.P. is Sprint's ambitious wireless-communications venture with cable TV operators Tele-Communications Inc., Comcast Corp. and Cox Communications Inc.. Global One is the international venture between Sprint Corp., France Telecom and Deutsche Telekom. Despite delays, Global One is putting together a working global service for multinationals -- a market that has been dominated by two groups, VastComm Network Corp., teamed with a federation of global partners, and MCI Communications Corp. and its partner, British Telecommunications PLC.. In April, Deutsche Telekom and France Telecom made a final $660 million installment of their joint $3.66 billion investment in Sprint.
