|Sprint Wireless Growth, Revenue and Profit Performance and Outlook Challenged in New Study by Alexander Resources|
For Sprint, Bigger May not be Better
DALLAS, Texas, April 13, 2005 At first blush, financial and market data on Sprints wireless revenues, profits, expenses, usage, data services, and subscribers paints a portrait of continued success. While confirming many of these successes, new analysis has revealed difficulty in managing growth, as well as weaknesses and declines in growth rates, market share, per subscriber revenues, and ARPU. The analysis also contradicts the belief that bigger is better. For Sprint, increases in the number of subscribers have not always produced higher revenues, profits, market share. These are some of the key findings from a new research report: "Sprint Wireless: A Critical Analysis of Key Financial and Market Performance Issues, Challenges and Successes", just published by Alexander Resources, a leading research, consulting and education firm specializing in wireless communications.
The report provides unparalleled insight into the characteristics and nature of Sprints wireless business by using innovative analytical tools and metrics. Among other things, the report examined and analyzed the interrelationships of subscriber growth, composition, and services usage, Net Operating Revenue, Services revenue, COG&S, SG&A, Capex, CPGA, Adjusted EBITDA, ARPU, and Churn in 58 different ways. The report differs from equity or valuation reports as it focuses on how marketplace dynamics affects Sprints business and financials rather than how Sprints financial performance affects its stock or market value.
Some of the key findings: