Sprint (NYSE: S) has released its second quarter earnings for the three months ending June 30th. The total revenues for the wireless business was $8.785 billion, an increase of 3 percent year-on-year and one percent sequentially. Income was $19 million for the quarter compared to $291 million a year ago: Earnings per share fell by 90 percent year on year to 1 cent. Adjusted operating income was $569 million, a decline of 34 percent year-on-year. Consolidated adjusted OIBDA of $2.9 billion declined 10 percent from the second quarter of 2006 but increased 12 percent sequentially. Post-paid ARPU in the quarter was a bit above $60, a decline of 2 percent year-on-year — Sprint noted this was a lower decline than the 5 percent year-on-year decline last quarter. Pre-paid ARPU brought in a bit under $31 for the quarter, a 9 percent decline year-on-year and a 5 percent decline sequentially. There was good news on the data side though: Total data service revenues increased 40 percent year-on-year and 4 percent sequentially. Data ARPU was around $9.75, or about 16 percent of total ARPU. On the CDMA network data ARPU was approximately $12.75.
— Qualcomm Ban: Sprint CEO Gary Forsee spoke about the conflict between Broadcom and Qualcomm: “We continue to explore options to ensure our customers have the latest handsets.” Sprint is relying on its work-around it has been working on for several months which Forsee said Qualcomm believes does not fall within the ITC ban order, although Sprint is also looking at other solutions…including encouraging Qualcomm and Broadcom to reach a resolution.
— IPhone: In response to a question Forsee said that there was a blip in churn for a couple of weeks when the iPhone launched, showing pent-up demand, but port-out activity had dropped back to a more moderate level — although slightly higher than before the iPhone.
— Subscribers: Subscriber numbers increased 5 percent year-on-year to 54 million, of which 41.6 million were post-paid, 4.5 million were Boost Mobile, 7.0 million were wholesale adn 978,000 were in the affiliate channel.
— Stock buyback: In this quarter Sprint Nextel bought around $1.1 billion of its common stock through open market purchase, which brings the cumulative buybacks to $3.0 billion and half of the planned total buyback amount.
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