Boston, MA 10/16/2013 (wallstreetpr) – Recent major developments at Sprint Corporation (NYSE:S) are telling a lot about the company and where it’s heading to. But understanding where Sprint is headed cannot be clearer without looking back at where it is coming from.
In the most recent quarter, Sprint reported $1.6 billion loss and the company explained it. It said loss of over 2 million customers was responsible for that larger-than-expected loss in profits. The reason such a huge loss appeared in the company’s books was because of the shutdown of its Nextel subsidiary which it had acquired for $36 billion in 2005. But since that loss, the company has made tremendous improvements in its management as well as products and services which have hoist its stakes for better results this quarter and the future.
The company’s takeover by SoftBank at $21.6 billion has brought in the much needed finances to power revenue growth in its various business units. Lately, Sprint has entered into lucrative partnerships and deals to ensure that it doesn’t sink into the reds when reporting the quarterly results. For example, the company has just received contracted from the U.S. Department of Veterans Affairs for mobile services in which it will offer an array of wireless devices.
The company has also partnered with United State Cellular Corp (USM) to expand its spectrum. This is a lucrative deal as it opens Sprint to wider cellular markets such as St. Louis, Chicago, Midwest and central Illinois. In the deal, Sprint has received as large as 20 MHz in spectrum to support its 1900 MHz band around Chicago. And this means great revenue enhancement.
It is now easy to see why even after posting a huge loss in the second quarter, Sprint’s shares continued to soar the following day in the exchange market as if nothing happened. The investor community must have noticed that Sprint was better placed to rebound and exceed its expectations and this is what now defines this $23.68 billion company.
