Sprint has maintained its full-year outlook after reporting a steady improvement in EBITDA and cash generating for the fiscal second quarter to September. Customer growth also improved, although revenues were lower due to market pressure on ARPU.
Ongoing cost reductions led to 16.3 percent growth in adjusted EBITDA to USD 2.729 billion, and the net loss narrowed to USD 48 million from USD 142 million a year ago. The latter includes USD 34 million in hurricane-related costs, and Sprint said this may increase. Revenues fell 3.9 percent to USD 7.927 billion, led by a 6.1 percent fall in mobile service revenue to USD 5.649 billion.
While operating cash flow increased to USD 1.959 billion, adjusted free cash flow was down to USD 420 million from USD 707 million a year ago. This follows an increase in capex for both the network and leased devices.
For the full year, Sprint still expects capex excluding leased devices of USD 3.5-4.0 billion, EBITDA of USD 10.8-11.2 billion and breakeven adjusted free cash flow.
More customers, lower ARPU
Net additions in the quarter reached 378,000, up from 61,000 in Q2 but down from 599,000 a year ago. The growth included 279,000 postpaid phone subscribers, out of total postpaid additions of 168,000, as well as 95,000 new prepaid customers and 115,000 additions at affiliates and wholesale. Sprint ended the quarter with total 54.027 million connections.
ARPU was down both sequentially and annual for postpaid to USD 46.00, while prepaid showed an annual improvement to USD 37.83. Churn increased across all levels, for a total figure of 1.72 percent in postpaid and 4.59 percent in prepaid.
