Sprint Nextel, investing heavily, posts Q1 loss
Sprint Nextel added a net 600,000 new subscribers in its first quarter of 2007, raising its total to 53.6 million. The company reported strong demand for wireless data services and strong growth in IP services.
Sprint Nextel reported net operating revenues of $10.1 billion in the first quarter, up about $22 million from revenues in the year-ago period. The company handed in a loss of $211 million, compared to a profit of $164 million in Q1 ’06.
The company attributed the loss to increased investment in infrastructure (which included its construction of a WiMAX network), compounded by “notably higher device subsidies to drive acquisition and retention.”