Sprint beat estimates on Wall Street for its revenue and profit as well as overall subscriber additions Wednesday helping drive shares higher by 9% at the No. 4 wireless carrier in the U.S.
Sprint is awaiting approval from regulators to merge with T-Mobile US its larger rival and remains focused on increasing revenue from its devices such as smartwatches and tablets, and getting more subscribers for its unlimited higher-priced phone plans, said CEO Michel Combes on a conference with analysts.
As customers increase the number of devices other than telephones, it should lower the churn, due to more devices existing on each account, added Combes.
Sprint posted a net income of $196 million equal to 5 cents a share during the quarter ended September 30, in comparison to a $48 million net loss equal to 1 cent a share the same period one year earlier. Analysts expected the company to post a loss of 1 cent a share.
Business appears to be stabilizing at Sprint as an analyst said that the deal with T-Mobile is almost halfway approved and it will be much easier integrating a company that is much more stable.
Sprint added 109,000 net subscribers who pay each month during the quarter, which is down from the 168,000 they signed during the same period in 2017.
Analysts were expecting the company to lose 10,000 net subscribers at the same period last year.
In July, Sprint changed its unlimited wireless plans in order to include a new basic and premium plan. Previously Combes said that higher prices for the plans could affect customer additions in the future, as the carrier attempts to balance its growth with profitability.
Sprint came up short of expectations of adding 22,000 net telephone subscribers instead shedding a net 34,000 during the quarter due to grappling with negative perception of the quality of its network in comparison to Verizon and AT&T.
Churn, which is the rate of customers leaving, amongst phone clients who play a monthly recurring bill, equaled 1.73% this past quarter, which was up from 1.58% for the same period a year ago.
Total operating revenue jumped to $8.43 billion compared to $7.93 billion, while analysts were expecting $7.97 billion.