Paulson & Co's positions in 4Q 2013 (Part 8 of 8)
John Paulson’s hedge fund boosted its position in Sprint Corp (S) from 2.20% in 3Q 2013 to 3.40% last quarter. The stake was initiated in 4Q 2012 and in 3Q 2013, the position was reduced.
According to an unconfirmed WSJ report, Sprint and Softbank are currently rethinking its options to buy T-Mobile from Deutsche Telekom (DTEGF) after the Justice Department and the FCC expressed concerns that the merger might not secure the required approvals. Sprint has been trying to convince the U.S. regulators that merging the No. 3 and No. 4 wireless carriers will increase competition and improve prices and options.
Sprint’s net loss was $1 billion in the fourth quarter as compared to a loss of $1.3 billion in the fourth quarter of 2012. The net loss included $1.53 billion in depreciation and write-off of assets related to its defunct Nextel business, as well as $206 million in costs related to its severance payments for recent layoffs and from getting out of lease agreements. Operating revenue grew year-over-year to more than $9.1 billion for the fourth quarter and to $35.5 billion for the full year 2013. Sprint ended the year with 53.9 million Sprint platform subscribers—its highest level ever—after adding 58,000 postpaid subscribers, 322,000 prepaid subscribers and 302,000 wholesale and affiliate subscribers in the fourth quarter. However, the number of contract customers declined to 58,000 new subscribers from 401,000 a year ago. Peers AT&T added 780,000 contract customers, while Verizon Wireless added 824,000 phone customers. T-Mobile added 869,000 contract customers in the period.
Browse this series on Market Realist:
- Part 1 - Must-know: Paulson & Co’s positions in 4Q 2013
- Part 2 - Why Paulson initiated a new position in Extended Stay America
- Part 3 - Why did Paulson buy a stake in Houghton Mifflin Harcourt?
- Investment & Company Information
- John Paulson