Sprint Wireless: A Critical Analysis of Key Financial and Market Performance Issues, Challenges and Successes
Report Content Overview
Sprint Wireless: A Critical Analysis of Key Financial and Market Performance Issues, Challenges and Successes is a new, comprehensive, and accurate assessment of Sprints wireless business, past, present and future.
This report serves three fundamental purposes. First, to evaluate the extent to which Sprint, over the past four years, has changed and improved the fundamentals of its wireless business. Secondly, to assess how its historical performance may effect its future. Third, to asses how the company has been effected by, and responded to, changes in its marketplace.
To achieve these purposes, the report examines sixteen quarters of financial and business data (subscriber growth, composition and services usage, Net Operating Revenue, COG&S, SG&A, Capex, CPGA, Adjusted EBITDA, ARPU and Churn) individually and in various combinations, to asses and determine:
· How these factors effect and influence one another (individually and combined).
· How these factors have changed and may change in the future
· Changes and improvements made by Sprint
· How these factors have effected Sprint and may effect it in the future
The report also identifies various changes that may improve Sprints financial and market performance.
In all, 58 aspects of Sprints wireless business are analyzed, assessed, and critiqued using new analytical methods and techniques such as Correlative Analysis, designed specifically for assessing a cellular carriers performance in the marketplace.
· Does size matter? Has a larger subscriber base improved Sprints financial and market performance?
· How much revenue has been lost due to churn, price erosion, and competition?
· Is revenue really increasing?
· How effectively has Sprint controlled and managed changes in revenue and expenses?
· Have per subscriber COG&S and SG&A expenses been increasing or decreasing?
· What does subscriber lifetime, revenue per hour, lost Services revenue, monthly data revenues per subscriber, Capex as a percent of NOR, and per subscriber NOR, COG&S, SG&A, Adjusted EBITDA reveal about Sprints business fundamentals?
· Have customers demonstrated a strong interest in advanced services?
· How has growth of Wholesale subscribers changed Sprints wireless business?
· Has growth and changes in its wireless data subscriber base and growth and penetration of wireless data services improved the fundamentals of Sprints wireless business?
o How have data revenues affected ARPU?
o How significant are data revenues?
o Is the growth rate of data subscribers changing?
o What is the relationship between changes in data revenue, data revenue growth rates, and growth of Vision and Wireless Web subscribers?
· How have changes in subscriber growth, competition, and services usage affected Net Operating Revenue, COG&S, SG&A, Capex, CPGA, Adjusted EBITDA, ARPU, and Churn?
· Why is ARPU an ineffective and misleading measure of a carriers financial and market performance?
· Does ARPU matter?
· How effective has Sprint been in reducing churn?
· Is Sprint spending too much or too little on Capex?
In summary, the report aims to provide the reader with a new and unique insight into the financial and market performance of Sprints wireless business: where it has succeeded and where it has failed, and where it is weak and where it is strong.
This is not an equity or valuation report, nor does it evaluate the company for investment purposes. It differs from equity or valuation reports in five important respects: first, it focuses on how marketplace dynamics affects Sprints business and financials rather than how Sprints financial performance affects the current or future value of its stock or market value. Second, it uses new and unique analytical tools and metrics designed specifically for assessing a cellular carriers performance in the marketplace rather than the tools and metrics used in stock and equity valuations. Third, this report provides unparalleled insight into the characteristics and nature of Sprints wireless business by examining and analyzing the interrelationship 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. Fourth, the analytical tools and metrics used, such as Correlative Analysis, provide a more accurate and comprehensive view of a companys financial and market performance than the analytical tools and metrics used in valuation reports. Finally, the report is completely objective; its author and publisher are devoid of any financial interest or benefit in Sprint, its stock or market value.
This is not an equity or valuation report, nor does it evaluate the company for investment purposes. The information contained herein should not be used for or relied upon to make or change any investment decisions. Alexander Resources and the author of this report gather its data and information from sources it considers reliable, however, does not guarantee the accuracy or completeness of the information provided in this report. The opinions and observations represented reflect the judgments of the authors on the date of publication and are subject to change.
This report draws upon research and analysis conducted by the author and Alexander Resources. Use of this report by any third party for whatever purpose should not, and does not, absolve such third party from using due diligence in verifying the reports contents. Any use which a third party makes of this report, or any reliance on it, or decisions based on it, are the sole responsibility of such third party. Alexander Resources, its affiliates and representatives accept no responsibility of care, or liability of any kind whatsoever to any such third party, and no responsibility for damages, if any, suffered by any third party as a result of decisions made, or not made, or actions taken, or not taken, based on this report. Alexander Resources does not make investment recommendations, in this report or otherwise, and nothing in this report should be interpreted as an opinion by Alexander Resources either on market forecasts or on the prospects of specific companies.
At the time of this printing, no financial or ownership ties existed or previously existed between Sprint Corp. and Alexander Resources. No officer or employee of Alexander Resources owned or has owned stock, bonds or invested in Sprint Corp. or any of its subsidiaries or affiliates. No officer or employee of Sprint Corp. owned or has owned stock, bonds or invested in Alexander Resources or any of its subsidiaries or affiliates. The research, analysis, development, production, marketing, and distribution of this report was solely performed and funded by Alexander Resources. Sprint Corp. or any of its subsidiaries or affiliates did not subsidize, fund, underwrite, or in any way influence this report.