Sprint Corporation reported operating results for the second quarter of fiscal year 2016, including the first year-over-year increase in total net operating revenues in over two years, a year-over-year increase of more than five times in postpaid phone net additions, and record low postpaid phone churn.
The company also reported a net loss of $142 million, operating income of $622 million, and Adjusted EBITDA* of $2.35 billion.
Total net operating revenues of $8.25 billion grew 3 percent year-over-year and wireless net operating revenues of $7.85 billion grew nearly 5 percent year-over-year.
Sprint continues to improve the cost structure of the business, realizing more than $1.1 billion of year-to-date reductions in cost of services and selling, general and administrative (SG&A) expenses, with nearly $600 million of the reduction coming in the fiscal second quarter.
Sprint reported a fifth consecutive quarter of positive postpaid phone net additions with 347,000 in the quarter, an improvement of 285,000 compared to the year-ago period. The year-over-year improvement was driven by both better acquisition and retention, as postpaid phone gross additions were up nearly 20 percent year-over-year.
Sprint enhanced its rate plan options for customers by launching Unlimited Freedom in August. The popularity of this new plan has grown quickly and today about half of new customers are choosing the Unlimited Freedom plan when they join Sprint. This attractive new rate plan helped the company remain postpaid net port positive against all three national carriers for the second quarter in a row.
Sprint ranked second for wireless network quality performance in five out of six geographic regions of the U.S. according to J.D. Power, a leader in independent industry benchmark studies, in its 2016 Wireless Network Quality Performance Study – Volume 2.
Sprint’s LTE Plus Network is now available in more than 250 markets and the company has started to deploy three-channel carrier aggregation in such markets as Chicago, San Francisco, Minneapolis, Dallas, Denver, Kansas City, Cleveland, and Columbus. These deployments will provide peak download speeds of more than 200Mbps on capable devices when available. The company currently has 10 three-channel carrier aggregation capable devices, including the recently launched iPhone 7 and Samsung Galaxy S7.