Sprint Nextel reports lowering profits

Sprint Nextel reports lowering profits

The third largest mobile service provider in the cluttered American market, Spring Nextel has reported not so impressive profit results for the most recent quarter. Spring Nextel posted a 55 percent drop in quarterly net earnings.

The fall is mostly due to the excessive expenses of the merger of the two companies. The company also suffered due to a disappointing wireless growth. As a result, Spring Nextel also suffered in the stock market as the share prices went down by a bit.

Spring Nextel is also planning to spin off its declining local phone business later this year in order to focus on its higher-growth wireless business. However, the market is so much saturated that market experts believe that the company will not benefit much from concentrating only on the wireless market.

Spring Nextel posted net profits of $197 million, or 7 cents a share. This is down from $437 million, or 29 cents a share, a year earlier.