Sprint Nextel Corporation lost another 1.3 million wireless subscribers to its competitors namely AT&T and Verizon Wireless . It was in 2005 when Sprint acquired Nextel Communications Incorporation. And since then, problems, like technical difficulties, unfocused marketing, and difficulty in integration, have been rocking the company.
According to Dan Hesse, the company’s chief executive, Sprint Nextel has been suffering not only from internal problems but also from external ones. As a matter of fact, the biggest problem they have at present is the bad reputation of the company. With the serious decrease in subscribers and the downturn of their revenue, their stocks are left untouched.
Sprint Nextel lost roughly $326 million for the months of July, August and September of 2008. That loss is equivalent to 11 cents per share. Comparing the present condition of the company to that of last year’s when it earned $64 million, or 2 cents per share in the same period, it can be said that Sprint Nextel really crashed.
Its revenues also fell by 12 percent. Instead of the $8.85 billion that analysts expected, Sprint Nextel’s revenue is only $8.81 billion. In addition to that, its shares fell by 7.6 percent. That is 28 cents making a share cost only $3.40.
At present, Hesse said that Sprint Nexte l’s primary goal is to stabilize its revenue. In line with this, the company’s terns of credit arrangement. To attract more subscribers, it reduced the amount in can borrow. From $6 billion, it can only borrow up to $4.5 billion at present. But it increased its allowed debt ratio from 3.5 to 4.25. It is also willing to pay higher interests.
Leather Case for SPRINT HTC EVO 4G Pouch Cover Holder
US $8.17 (0 Bid)
End Date: Thursday Jan-13-2011 14:58:27 PST
MOTOROLA SIERRA WIRELESS MP555 GPS CELLULAR DATA MODEM
End Date: Thursday Jan-13-2011 14:58:34 PST