Sprint Reports $498 Million 3Q Loss
KANSAS CITY, Mo. (AP) _ Telecommunications giant Sprint Corp. lost $498 million in the third quarter in contrast to a profit a year ago, as both its wireless and wireline divisions reported losses.
Sprint said Thursday its loss for the three months ended Sept. 30 reflected the consolidation of its two businesses which are traded separately on the New York Stock Exchange. Its consolidated profit amounted to $519 million a year ago.
Consolidated revenue slipped to $6.7 billion from $6.8 billion a year ago.
The wireline division, Sprint FON, lost $433 million, or 48 cents per share, during the quarter compared with earnings of $526 million, or 59 cents per share, a year ago.
Excluding one-time items Sprint FON earned 38 cents per share, beating the 34 cents a share expected by analysts surveyed by Thomson First Call.
The division reported revenues of $3.5 billion, down from $3.8 billion the year before.
The Overland Park, Kan.-based company’s wireless division, Sprint PCS, reported a loss of $65 million, or 7 cents per share, compared with a loss of $7 million, or 1 cent per share, a year earlier. Analysts expected a loss of 7 cents per share.
Sprint PCS reported revenues of $3.3 billion, up from $3.2 billion the year before.
``I’m pleased with Sprint’s performance this quarter,″ said Gary Forsee, Sprint chairman and chief executive officer. ``We are staying focused on executing our agenda of optimizing our wireline and wireless assets as a way of creating value to our two shareholder groups.″
For the first nine months of the year, Sprint’s consolidated earnings were $1.18 billion versus $591 million a year ago. Consolidated revenue was down 3.1 percent to $19.5 billion from $20.14 billion a year earlier.
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