Earnings: Sprint Q4 See 66 Percent Rise In Data Revenue

Sprint Nextel has released its fourth quarter 2006 earnings report, showing total wireless revenues of $9 billion, up 9 percent from the same period in 2005. Adjusted operating income increased 28 percent year-on-year increase to $651 million. Forbes notes that Sprint Nextel earned $261 million, or 9 cents per share, during the October-December period, compared with $195 million, or 7 cents per share, a year earlier. However, “for all of 2006, profit slumped to $1.33 billion, or 45 cents per share, from $1.78 billion, or 87 cents per share, in 2005. Revenue rose 43 percent to $41.03 billion. The 2005 results only include revenue from Nextel Corp. starting in August, when the merger was completed”.
Of particular interest is the fact that Sprint saw its data service revenues increase 66 percent for Q4 2006 compared to Q4 2005, and 14 percent sequentially. From the earnings report, “the growth is being driven by strong take rates for Power Vision SM data services on handsets, demand for text messaging and increasing laptop aircard usage supported by EVDO expansion on the CDMA network. Data contributed $8.75 to overall post-paid ARPU in the quarter and reached nearly $12 of contribution, or 20% of CDMA postpaid ARPU”.
Earnings Report | Earnings Call Transcript

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