Sprint Nextel posts loss for the first quarter of the year

Sprint Nextel posts loss for the first quarter of the year

The third largest mobile service provider in the United States, Sprint Nextel has come out with their latest revenue report and the company has posted a loss for this period.

The company suffered from big investments which wiped out the gains in sales. Sprint Nextel also suffered from their high quality subscribers who are moving to competing services.

Sprint Nextel reported losing $211 million or 7 cents per share in the period. This is disappointing compared to profit available to common shareholders of $417 million, or 14 cents per share, a year ago in the same period.

The company further added that after excluding the one-time amortization charges they earned 18 cents per share. This is also way below what the market expected them to post.

Sprint Nextel chairman Gary Forsee added in a statement: “These increased commitments, along with notably higher device subsidies to drive acquisition and retention, impacted our profitability in the quarter. However, we are seeing some positive trade-offs in the form of enhanced competitiveness.”