Sprint on Thursday reported greater than expected losses in the second quarter despite modest revenue growth. The nation’s No. 3 carrier pulled in $8.3 billion in its June quarter, up 4% from the same quarter a year prior, but it wasn’t enough to bring the company back into the black. Sprint’s net losses in the second quarter totalled $827 million, 11% worse than the $760 million loss it reported in the second quarter of 2010. On the bright side, however, those losses include $588 million in bad investments and a $52 million tax charge from the state of Michigan, so Sprint would have shown sequential and year-over-year improvements if not for those losses. Sprint also reported its best subscriber churn of late in the second quarter, adding more than a million new subscribers despite shedding 101,000 net wireless postpaid customers. “Sprint’s second quarter results, including our fourteenth consecutive quarter of improved customer care satisfaction, our best ever postpaid churn, more than 1 million net wireless subscriber additions and wireless service revenue growth, validate that our focus on providing simplicity, value and an unmatched customer experience is working,” said Sprint CEO Dan Hesse in a statement. Of note, sprint also announced a deal with LightSquared on Thursday that will see it bring 4G LTE services to 260 million Americans by 2015. Sprint’s full earnings release follows below. More →
LG on Wednesday reported second-quarter earnings that showed notable growth, though the consumer electronics giant still hasn’t found a way to return its mobile business to profitability. The company’s revenue for the quarter reached KRW 14.4 trillion (U.S. $13.3 billion), up 9.3% sequentially. Following two straight quarters of losses, LG reported a net profit of KRW 108 billion (U.S. $99.6 million) in the second quarter thanks to solid TV sales and cost-cutting efforts. The company’s operating income of KRW 158 billion (U.S. $145.8 million) was up 25% from the same quarter last year, and up 21% over the first quarter. LG’s mobile business is still struggling, however; despite improved performance, LG Mobile Communications Company still reported a loss of KRW 54 billion (U.S. $49.8 million) on sales of KRW 3.25 trillion (U.S. $3 billion), up 11.6% compared to the first quarter. The South Korean firm said it expects to see modest year-over-year growth in the third quarter. LG’s full press release follows below. More →
Things aren’t looking so pretty at Sony Ericsson as the handset maker a little while ago posted its fourth-quarter earnings showing a loss of $270 million, pre-tax. Of course, this should come as no surprise to anyone since SE’s earnings reports the past few quarters, six to be exact, were just as disappointing. The company also recently had major layoffs and restructuring the past few months. However, SE is remaining cautiously optimistic for 2010. While other manufacturers are expecting a big rise in the cell phone market in 2010, SE sees things a little more modestly. Since smartphones and high-end devices are Sony Ericsson’s overall weakness right now by comparison to Apple, HTC and BlackBerry, we’re thinking that there is a lot riding on the XPERIA X10 with Android due out very soon. More →
As sad as it is, it should be no surprise to anyone that theft is a pretty regular occurrence in the electronics industry. Though most mobile retailers take plenty of measures to prevent losses, it’s not possible to keep it from happening 100% of the time. When you’re dealing with third-party retailers and authorized dealers it really becomes difficult to keep all inventory safe as the carrier. So, Rogers is allegedly going to begin taking advantage of an EIR, or Equipment Identity Register, which logs reports of stolen mobile devices and keeps them from being used. According to an internal Rogers document courtesy of one of our ninjas, if a phone is stolen and the IMEI is identified, Rogers will input it into the international registry which prevents it from being used on over 40 GSM networks worldwide. Unless you’re in some obscure country that uses a tiny GSM network, consider yourself out of luck if you have a stolen Rogers device in your hands. For Rogers, the days of the five-finger-discount are over. Hit the link for a copy of the internal document detailing the deterrence plan.