Sprint slows

Sprint Nextel has reported another poor set of quarterly financial results, with profits down more than 50% and post-paid subscriber numbers falling by 188,000. Costs associated with the merger of Sprint and Nextel last year have pushed net profits down from USD516 million in 3Q05 to USD247 million in the most recent period. Sales were up 34% to USD10.5 billion thanks to the addition of the Nextel business, but on a pro forma basis including Nextel results from the start of 2005, sales would be up by just 8%. Although subscriber numbers rose by 233,000, the bulk of additions were either pre-paid users or via third-party wholesale agreements; more lucrative post-paid subscriptions fell by 188,000. Customer additions are also much lower than other major US wireless carriers; number one cellco Cingular Wireless added 1.4 million net new customers in the third quarter. Sprint had 51.9 million subscribers at the end of September.