Sprint Nextel 3Q loss grows on subscriber losses

KANSAS CITY, Mo. -- Sprint Nextel Corp. on Thursday reported a wider third-quarter loss as subscribers continued to leave for other carriers.

The company said it lost $478 million, or 17 cents per share, compared with a loss of $326 million, or 11 cents per share, during the same period a year ago.

Analysts surveyed by Thomson Reuters expected a loss of 14 cents per share excluding one-time items.

Revenue during the quarter slipped 9 percent to $8.04 billion from $8.8 billion, below the $8.09 billion expected by analysts.

Wireless revenue declined 8 percent as the company shed a net of 545,000 wireless subscribers, including 801,000 so-called postpaid customers who sign annual contracts and tend to spend the most.

It was more than the 257,000 subscribers lost in the second quarter, but it was an improvement on the postpaid front as the company lost 991,000 last quarter. Sprint lost 1.3 million subscribers during the third quarter of 2008.

The loss of postpaid customers was somewhat offset by a gain of 666,000 prepaid customers -- customers who pay for their service on a month-to-month basis, most of them coming through Sprint's Boost Mobile subsidiary. That was down from the second quarter, when Sprint added 777,000 prepaid customers.

With 48.3 million subscribers, Sprint is the third-largest U.S. wireless provider.

Sprint rival AT&T Inc. already reported adding 2 million subscribers during the quarter and Verizon Wireless added 1.2 million.

Sprint's wireless churn, or the measure of subscribers dropping service, was 2.17 percent, higher than 2.15 percent a year ago and 2.05 percent in the second quarter.

Sprint, based in Overland Park, Kan., hasn't provided specific financial guidance for the year, but said it continues to expect total and prepaid subscriber losses will be smaller than in 2008.