Marcelo Claure, the CEO of Sprint Corp (NYSE:S), expressed his views on 2Q2016 results. He stated that they have continued to implement on turnaround plans with impressive results in 2Q2016. The postpaid phone net additions jumped five times from a year ago, and twofold net additions over last quarter. This was led by best-ever postpaid phone mix in firm’s history, and continued improvement in gross additions of postpaid phone. Additionally, Sprint continued to be postpaid net port positive compared to all 3 national carriers for the second quarter in a row.
During the same time, Sprint have recorded operating revenue growth YoY, while continue to minimize cash operating expenses. The company had liquidity of more than $11 billion at the close of the quarter, and anticipate to close the spectrum-backed financing deal worth $3.5 billion at an interest rate of 3.36%, which is lesser than the last time rate the firm went to the market. Additionally, they continue to witness third-parties acknowledging the quality of firm’s network.
The customer growth continued in 2Q2016, with total net additions at 740,000 in 2Q2016. Postpaid net additions were 344,000 in reported quarter. Sprint was postpaid net port positive compared to every national carrier in 2Q2016 for the second quarter in a row.
Claure added that they have enhanced porting ratio compared to other carriers QoQ. This growth can be attributed to the firm’s highest profit contribution segment of business, as the postpaid phone net additions for the quarter surged by more than 5 times YoY, and the phone net additions of 520,000 in 1H2016 is almost 20% more compared to performance in the last year.
This remarkable growth in postpaid phone segment was partially led by the fact that the postpaid phone gross additions surged almost 20% YOY in the quarter. This matches a projected 400 basis point growth in market of postpaid phone gross additions. Additionally, the postpaid phone net additions grew almost 400,000 compared to Verizon in 2Q2016. The company has surpassed Verizon for three successive quarters in postpaid net additions. Also, the affiliate and wholesale operations continued to advance with 823,000 net additions.