Sprint reports $760 million net loss for Q2, slightly less than expected
By Donald Melanson 
posted July 28th 2010 3:57PM
posted July 28th 2010 3:57PM
posted July 28th 2010 3:57PM
A look back on popular stories from today in a specific year.
Now that we've thrown 'em off the trail, use the form below to get in touch with the people at Engadget. Please fill in all of the required fields because they're required.
Wrap it up, sprintailures.
@Leindurstit
They have great plans and good coverage here in texas. I just wonder how long they can keep hemorrhaging cash.
Sorry Sprint, I'll start paying my bills on time from now on...
@Leindurstit STHU AT&T fanboy
@genesis
Yeah...see....I see this as a double-sided piece of news. For one thing, they're losing a lot of cash for the second quarter in a row. On the other hand, they're not losing as MUCH cash as they expected.
Let's get it going, Sprint. Good on you for not overcharging for plans and not capping data!
@Leindurstit
Headline from
WSJ: "Sprint adds subscribers at record pace"
dailyfinance: "Sprint Nextel paosts first subscriber gain in 3 years"
http://www.dailyfinance.com/article/sprint-nextel-posts-first-subscriber/460860/
reuters: "Sprint customer growth beats street"
http://money.cnn.com/news/newsfeeds/articles/reuters/MTFH97202_2010-07-28_17-24-43_N28190638.htm
ap: "Summary Box: Sprint Nextel gains subscribers"
http://hosted.ap.org/dynamic/stories/U/US_EARNS_SPRINT_NEXTEL_SUMMARY_BOX?SITE=VOICESD&SECTION=HOME&TEMPLATE=DEFAULT
THE VERY ARTICLE engadget uses as a source (sfgate) : "Sprint Posts Narrower Loss Than Estimated as Evo Draws Users"
As i write this Sprint stock up (although small) up 1%
engadget: "Sprint reports $760 million net loss for Q2, slightly less than expected"
you do the math and think about what really going on here
@Leindurstit. Wow they gain 111,000 customers ( their 1st gain in many quarters) and the headline is how much money they lost and that's old news.
@Leindurstit
What really gets me is that Engadget is the only gadget blog looking at it as the "glass is half empty", giving readers a bad perspective on this story.
Everybody else is dubbing this story "Sprint acquires 110,000 more subscribers!"
Go Sprint, good job. I'm glad Sprint's picking things up.
@Leindurstit
To be fair I'm pretty sure it's ok to have a net loss when you're spending money (like the 1.2B in free cash flow they have) on priorities in your company. That said, I hope that's the end all reason lol.
http://newsreleases.sprint.com/phoenix.zhtml?c=127149&p=irol-newsArticle_newsroom&ID=1452819&highlight=
@jr2cool
In case you haven't noticed...Sprint actually sponsors The Engadget Show.
@svargas05
True. They will not see the true effect from all the added subscribers until later on. This is definitely more good news than bad, but all Engadget can report is 2 quarters of loss. Come on, Engadget.
I dont see why so many people talk shit on sprint. Honestly I think they're great!
Hell I only pay $70 a month and have pretty much unlimited everything with great coverage. I tried to go to Verizon once and they were going to charge me $120 for the same plan.
@Mike10010100
Seriously, this is just piss poor reporting. Good god, Engadget, you bias has shown through plenty of times before but this is just ridiculous. I don't know who this Donald guy is but you should consider letting him go... I didn't think anyone could make you look worse than you already do but he did. This was seriously amateur.
@genesis Awwwwww what happen? I thought Android phones and cheap plans would bring record business.
@genesis I wouldn't exactly call it hemorrhaging cash. Sure its losing money, but its definitely improving. Next quarter should be even better with more 4G markets launching, plus the release of the Epic.
Its way less cash than they lost last year :)
--------Sprint needs to do like Dominoes and say "yeah we sucked in the past but now we are better, come try us" that said, I've yet to try Dominoes new pizza-------
@Raytem
Awwwww look at that. They're gaining a ton of new subscribers and not raping everyone's wallet while simultaneously upgrading their network.
Sorry to hear that you're disappointed by that.
@Leindurstit
That's bannable, mods?
@Raytem it did, it brough 110,000 new subscribers
@genesis
Completely agree! Sprint FTW!!!
@Mike10010100
My God, are you guys serious? You keep talking about Engadget bias, but I guarantee that if it were AT&T who just lost over 700 million, you same guys would be mocking AT&T and the iPhone, while completely ignoring their growing subscriber base.
I can't believe people are voting you Android-biased whiners up. It's not Engadget that's getting pathetic, it's the readership.
@genesis
Yea So much for htc was selling out.
Sprint has Verizon coverage for T-mobile prices. I've had problems with them in the past, but nothing in recent years, and nothing serious enough to make me give up my SERO plan. I have an EVO and could not be happier with it or Sprint coverage. Hope they can start making some money without increasing prices to AT&T or VZW levels.
@Itchy Britches
Soo... What you're saying is that if the situation was completely different, then the outcome might be different? I agree with that logic, although it doesn't really mean anything.
Also, way to create a strawman that you can then attack with spite. That's OBVIOUSLY the best way to win an argument, at least, one in your own head.
@Mike10010100
Please explain to me how any journalist with a shred of credibility could praise a company that just lost 760 million in one quarter. What sane journalist would do something that stupid? Seriously?
Engadget is supposed to ignore a 760 million lost just because you really like the EVO? Are you on crack?
@Son Of a Gun
Just had Dominoes last night. It's actually a lot better than it was before, better than Pizza Hut for sure.
@jr2cool I'm sure if it was about whatever apples latest fanboy pos was engadget would put a positive spin on it :)
Well, it looks like I got an answer to my question: What kind of journalist with a shred of credibility could praise a company that just lost 760 million in one quarter?
Apparently, it's the "journalists" at Gizmodo. They didn't say one word about Sprint's 760 million loss last quarter. This reminds me why I go to Gizmodo for comedy and Engadget for serious news.
@svargas05
Yo for real, I've looked at every site n is positive for sprint but for some reason Engadget starts it off on a negative note, making it look like they r just bleeding when actually they picked up new customers but Engadget words it different to make it look bad I'm about to delete Engadget app of my phone
@Flip35
You guys are crazy. There is no way to spin a 760 million dollar loss, if you're honest. Apparently, the other sites you read are not at all honest.
@Itchy Britches
Hey! Would you look at that! A wild fanboy appears!
Here's a list of everyone who made the gaining customers more significant than losing 760 million. Note how even with the loss, everyone says that it was better than estimates.
http://online.wsj.com/article/BT-CO-20100728-712238.html
http://www.reuters.com/article/idUSN2819063820100728
http://www.mediapost.com/publications/?fa=Articles.showArticle&art_aid=132827
More to come.
@Itchy Britches
I know! Fandroids are blaming Engadget for reporting the simple FACT that Sprint lost $750 million+.
Hey dumbasses, here's a hint: Sprint DID lose $750 million+. There is no spinning that, there is no excuse for that. You're just pissed because somebody is pointing it out. Get over it.
Calling it "biased" on Engadget's part is really reaching new heights of stupidity.
@Itchy Britches
Wow. For crying out loud. Just to show your ignorance, let's just post the link to Google News, where almost every single title and article is positive.
http://news.google.com/news/more?pz=1&cf=all&ned=us&cf=all&ncl=d6JzBZifigeOPeMBtpHGDHjMThBmM
I mean really. This is just pathetic.
@Jack
Here's what they DON'T emphasize. They're adding new customers faster than ever, they're upgrading their network, they're keeping prices low, and they haven't lost as much money as anyone suspected. Just check out the links I posted for some real neutral journalism.
Why do you take such pleasure in that? Do you not like competition? Everyone must conform, right? It always pains me to see a company suffering (except for BP lol), as it means that there is less of a chance of heterogeneity in the market.
@Xgattz Sprint is pretty good where I live, but their 3G network WAS pretty terrible for years until lately. Talk to most longtime Sprint user and they would agree. A lot of people that hate on Sprint were former Sprint users that had both crappy reception and crappy customer service, which left a bitter aftertaste not matter how much it has improved now. Think even worst reception than AT&T in most places.
Just ignore Engadget's FUD, Sprint fans. We're only a few weeks away from a launch of Epic proportions.
@Mike10010100
So tell me, AT&T can expect the same level of support from you guys in the future, am I right? I mean you guys are so unbiased and the Engadget writers are so biased, I'm sure you would never mock AT&T for losing so much money.
That's good to know. I'll file this away. If AT&T ever loses 760 million, I can count on the unbiased support of Mike10010100 and jr2cool and CarlosMobile and Flip35 and all the unbiased people who think a 760 million dollar loss can be ignored because the same company signed 100,000 new subscribers.
LMAO
@Itchy Britches
I don't have a blog viewed by hundreds of thousands of people. I don't ever claim to be unbiased. I try to, but again, that's not my job.
Secondly, why should I be in support of it? I just won't say anything at all. I have merely put the loss in context: It was less than what everyone expected, and they're still gaining new customers, which means more income, while the profits won't be realized until later. Also, they're upgrading their network.
Oh, and btw, a 760 million dollar loss CAN be ignored due to the monolithic size of AT&T. Their sole profit gainer seems to be raping consumer's wallets while giving them less features and more caps, so yeah, I can't really see them ever losing money unless their subscriber base goes away.
@Itchy Britches AT&T won't ever want support. You know how Satan is about flyin' solo.
@Son Of a Gun
LOL but then again they make more money off you when u pay those late fees
@jr2cool
Well done. Great post...AT&T's horrible network and loss of iPhone exclusivity will surely bring a reckoning upon their post paid account numbers.
I have said for a long time that Sprint has a great network, some of the best data speeds around, and super cheap plans. They consistently get great phones and are leading in 4G right now. Their customer service is so lenient its almost too easy to abuse them and get perks. Why Sprint isn't more popular among tech geeks I have no idea...wait, I do. 1) mega Ads and 2) iPhone. I guess some of you quasi-power users really are just sheep.
I could also be biased because I have a SERO plan and pay $30 for unlimited (pick 3) everything. Internal leaks recently show Sprint is lifting phone restrictions on SERO plans so we frugal Touch pro 2 consumers will be sporting EVO and Epic (Galaxy) devices on our SERO accounts by Oct. I dont know which news was more joyous; this or the iphone 4G design flaw meltdown.
@Mike10010100
None of what you said makes even the slightest bit of difference. You are butthurt because Engadget is reporting on the FACT that Sprint lost $760 million, and then calling them BIASED, which is STUPID.
GET OVER IT.
@Mike10010100
Oh, so you are merely putting Sprint's almost 1 billion dollar loss in context. Well, let me put Sprint's loss in context. The last company that was regularly praised on Engadget by the rampant fanboys, despite staggering losses every quarter, was Palm. And guess what eventually happened to them.
Look, I'm a Linux fanboy myself and want to see Android succeed, but let's be honest about this. Sprint could sign 1 billion new subscribers, but if they're still losing money, it means nothing. In fact, it might mean they have a stupid business model. I mean, if you're giving phones away for free and giving people unlimited data and plans that don't make any real money, then you have a stupid business plan.
Okay? Get the picture? If not, I'm truly sad for you, but just because you refuse to face reality does not automatically make Engaget "biased." That's the last word I'm going to say about this nonsense.
@Jack
Nope. I'm calling them out for emphasizing the loss without treating the gain equally, like every other news outlet.
The fact that they lost $760 million is fact. What's your problem? I'm not denying it. I'm saying that it is less than what anyone expected, and they're adding a ton of new customers, all while upgrading their network and keeping prices low.
@Itchy Britches
Let's not go overboard here. Palm mismanaged and could have made one of the best OSs out there into one of the most popular, but they didn't. Oh, and that loss is as close to $1 billion as it is to $520,000. Seriously? You're inflating their loss, while pushing your own opinions as fact. The profit from their user base will not be felt for a while. The EVO and other new phones are still coming out. It's not surprising that up until then they were losing. They had the Hero and Moment, and that's it! Now they have superphones, compelling ads, and the fact that Android is quickly catching up to Apple.
"Look, I'm a Linux fanboy myself and want to see Android succeed, but let's be honest about this. Sprint could sign 1 billion new subscribers, but if they're still losing money, it means nothing. In fact, it might mean they have a stupid business model."
It might. It also might mean that up until now they had a really crappy phone lineup, and now they won't be hemorrhaging money due to less SERO plans from all the customers that upgraded to the latest phones.
"I mean, if you're giving phones away for free and giving people unlimited data and plans that don't make any real money, then you have a stupid business plan."
The low-end phones are free, yep. So are most companies' low-end phones.
"Okay? Get the picture? If not, I'm truly sad for you, but just because you refuse to face reality does not automatically make Engaget "biased." That's the last word I'm going to say about this nonsense."
No, I absolutely get it. Rather than thinking about the user gain logically, you're going to go with the negative title. They were EXPECTING to lose money. That's them saying "Hey, guys, we're probably not going to do so well this quarter.". And yet, they beat those expectations. The expanded user base + a continuous upgrade to newer phones and more expensive plans means that they're about to get a bigger burst of money.
Let me put it another way. They had pretty last-gen phones until July. Now, their future looks bright.
@Mike10010100
Sigh .. why dont you actually read the articles you posted before attacking everyone else
note taken from the reuters news
Its loss of 228,000 monthly bill-paying subscribers in the quarter - these are people that signed contract.
including less valuable prepaid customers who do not commit to a contract, Sprint boasted that total subscribers grew for the first time in three years, with 111,000 net additions.
But meanwhile, Verizon Wireless, a Verizon Communications Inc (VZ.N) and Vodafone Group Plc (VOD.L) venture, reported an additional 665,000 postpaid customers alone for the second quarter, while AT&T added 496,000.
Stock is flat today, down 4% yesterday
So more people either out of contract or do not want to have a contract. I dont think this is a very good news for sprint. Good thing I sold half of my shares on Monday when it hits 5.
@WhatDoIKnow
Nothing in that report contradicts anything that I've said. Yes, Verizon and AT&T are adding more. I don't really see your point.
I am not a stock trader. I care nothing for stock prices. I'm simply saying that even though they lost 228,000, they added a NET 111,000 customers. This is extremely good for them. They are also not raping the customer's wallet, and are upgrading their network.
@svargas05 My name is Sebastian Vargas. svargas is my SN in many things. Freaky shit
@Leindurstit
I have been with Sprint since they first came to the Milwaukee market back in '97 or '98. I currently have five lines with Sprint. For over a decade I have essentially been an unpaid Sprint employee hand delivering them on average one new customer a month. All told I would estimate I am personally responsible for about 200 individuals joining their customer base.
However, in the past four months Sprint employees have made three critical errors that have put me in a position to walk. One major error was made by local Sprint management after I sought employment with the carrier only to later realize that the three interviews and pre-employment drug screening were simply a game they played to waste my time, energy, and money. Dan Hesse and the HR team at Sprint would be shocked to hear that story. (I have the whole situation documented and would welcome their call.) The other two more recent errors may result in the value of my total monthly services being knocked down approximately 40 percent while the expectation placed on me is an increase in my bill of over $125 monthly.
I do not understand how Sprint can expect to stay in business with a healthy pool of customers when they can't every treat their best customers with the respect and admiration they deserve. Bring on one of those follow-up Sprint surveys because I'm finally ready to provide a CSAT wake-up call.
wow sprint, how dooooo you do it?