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Sprint 4Q 2008 Loss less than expected but keeps losing customers
NEW YORK -(Dow Jones)- Sprint Nextel Corp. (S) posted a narrower fourth- quarter loss and indicated that it’s on the cusp of turning around its subscriber losses.
The Overland Park, Kan., wireless carrier lost 1.3 million subscribers in the fourth quarter – still an alarmingly high rate – but suggested the declines were stabilizing as predicted. Such stabilization is occurring as growth in the broader U.S. wireless industry slows during a decline in consumer spending and market saturation.
“Despite losing customers, Sprint seems to be moving in the right direction, especially in light of a slow-growth quarter posted by AT&T and Verizon,” said Rick Franklin, an analyst at Edward Jones.
Chief Executive Dan Hesse said he sees subscriber losses narrowing this year. But the company declined to provide further financial details, citing the economic uncertainty.
“These are unprecedented economic conditions,” Hesse said in an interview with Dow Jones Newswires. “We’ve seen some impact, but not dramatic impact. But we can’t guarantee that will continue to be the case.”
Sprint shares recently rose 22.1% to $3.31.