Sprint posts first quarterly profit since 2007

Sprint loses 313,000 customers in the third quarter, down from a loss of 2 million last quarter.
Posted By Kristen Butler  |  Updated Oct. 30, 2013 at 5:47 PM
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(UPI) -- Sprint reported its first quarterly profit since 2007, though the company lost 313,000 customers, leaving it with nearly 54.9 million subscribers at the end of September.

That followed a loss of 2 million subscribers in the previous quarter.

The wireless company's profit is due largely to a $1.4 billion gain from its purchase of wireless network partner Clearwire. Sprint already owned just over half of Clearwire, and so increased their stake's value after the purchase.

Sprint reported a $383 million profit for the quarter on revenues totaling $8.68 billion, compared with a loss of $767 million a year earlier.

Sprint's last reported profit came in the third quarter of 2007, when it earned $64 million.

Another reason for the unusual quarter was Sprint's July deal with Tokyo-based SoftBank, which purchased 78 percent of the Overland Park-based phone company, and since increased its stake to 80 percent.

Sprint also said it is realizing "significant cost savings" from the shutdown of Nextel.

The company also reported that its LTE network has been extended to cover 45 more markets, bringing its total to 230 across the U.S. The latest network expansion increased availability in New York City, but in the nation's ten largest cities, including New York, Sprint still shows abysmal download speeds compared with other carriers.

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