Advertisement
U.S. markets close in 24 minutes
  • S&P 500

    5,260.96
    +12.47 (+0.24%)
     
  • Dow 30

    39,830.89
    +70.81 (+0.18%)
     
  • Nasdaq

    16,398.02
    -1.50 (-0.01%)
     
  • Russell 2000

    2,123.80
    +9.45 (+0.45%)
     
  • Crude Oil

    83.08
    +1.73 (+2.13%)
     
  • Gold

    2,240.90
    +28.20 (+1.27%)
     
  • Silver

    24.97
    +0.22 (+0.88%)
     
  • EUR/USD

    1.0791
    -0.0039 (-0.36%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2622
    -0.0016 (-0.13%)
     
  • USD/JPY

    151.4010
    +0.1550 (+0.10%)
     
  • Bitcoin USD

    70,874.58
    +2,343.20 (+3.42%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

Sprint: The Market Leader in Net Prepaid Additions in 4Q14

Sprint’s Fiscal 3Q14 Results – Positive Signs for Investors (Part 8 of 19)

(Continued from Part 7)

Leader in net prepaid additions

In the last part of the series, we learned that Sprint’s (S) net customer additions increased in fiscal 3Q14. We also learned that prepaid customers contributed to the sequential growth in Sprint’s net additions during the quarter. Now, we’ll compare Sprint’s prepaid performance with other national wireless carriers including Verizon (VZ), AT&T (T), and T-Mobile (TMUS).

In terms of net prepaid additions, Sprint was the market leader among other national wireless carriers during the quarter. As you can see in the above chart, Sprint’s platform added 410,000 prepaid connections during the quarter. It was closely followed by T-Mobile (TMUS). It added 266,000 prepaid connections during the quarter. Verizon (VZ) also added prepaid customers during the quarter. However, AT&T reported net losses of 180,000 prepaid connections during the quarter.

Boost Mobile drove Sprint’s prepaid additions

Sprint’s platform had net customer additions of 410,000 in the prepaid segment during fiscal 4Q14. They grew significantly during the quarter. In fiscal 2Q14, the net additions only stood at 35,000. According to the company, the growth in the additions of net prepaid connections during the quarter was primarily due to its Boost Mobile brand.

Sprint increased the promotional efforts in its prepaid brands. It introduced “Data Boost Plans” under Boost Mobile in September 2014. In “Data Boost Plans,” prepaid wireless customers get unlimited text, calls, and data.

If you want to get diversified exposure to Sprint, you can invest in the iShares U.S. Telecommunications ETF (IYZ). IYZ held ~4.6% in the telecom on March 5, 2015.

Continue to Part 9

Browse this series on Market Realist:

Advertisement