Top message: Sprint reports Q1 2011 results, adds 1.1 million subscribers by Azeron
Replying to: Re: Yes. by nextel18
Re: It's not that bad...
whats good news? net losses (financial) and losses subscribers?
They grew by 300,000 traditional postpaid subscribers.
You should know as well as anyone that high growth quarters are typically low profit quarters, because the subsidized-handset model we operate on here in the USA places high cost of acquisition on new customers. AT&T saw exactly the same thing throughout 2008 with the introduction of the iPhone 3G on a subsidized acquisition scheme. Heavy growth and lousy profits frequently go hand in hand.
The dividends from the new 1,000,000 customers can't be expected to help cash flow in the short term. Those adds won't pay off until the end of the year, because it takes nearly six months to break even on a new customer!
Sure, it's not "great" news for Sprint, but it's some of the best news they've had in five years!
They're clearly going the right direction, finally.
- Re: It's not that bad... by nextel18