Why Sprint’s Revenue Fell in Fiscal 2Q17
Sprint generated total net operating revenues of ~$7.9 billion in fiscal 2Q17, a decrease of ~3.9% on a YoY basis.
Sprint’s (S) solid fiscal 2Q17 results suggest that its turnaround is on track and the company is indeed holding its own in an intensely competitive wireless environment.
The fall in Frontier Communications’ operating expenses was due to declining costs tied to network access and sales and marketing.
Frontier Communications (FTR) reported revenues of $2.3 billion in 3Q17, down 10.7% year-over-year but in line with the consensus estimate.
On November 17, 2017, T-Mobile’s (TMUS) stock price closed at $60.02. The telecom company’s stock has risen ~12.4% during the trailing year.
On November 17, T-Mobile was trading at $60.02, which was 2.1% above its 20-day moving average of $58.80 and 1.2% below its 50-day moving average of $60.74.
T-Mobile (TMUS) and Sprint (S) on November 4 announced that they had ceased talks about merging because they were unable to find mutually agreeable terms.
T-Mobile has been focusing on its 5G technology because it expects its 5G services to provide up to 100 times faster wireless data speeds than 4G.
In 3Q17, T-Mobile’s YoY (year-over-year) postpaid phone churn rate looked better at 1.23%, compared with 1.32% in 3Q16.
In 3Q17, T-Mobile’s (TMUS) branded postpaid phone ARPU (average revenue per user) fell ~2.5% YoY (year-over-year) to $46.93.
T-Mobile has a solid spectrum position and owned an average of ~110 MHz spectrum nationwide at the end of 3Q17—an increase of ~39% in spectrum holdings.
T-Mobile (TMUS) reported equipment revenues of $2.1 billion in 3Q17—up ~8.7% from $1.9 billion in 3Q16.
T-Mobile (TMUS) continuously invests in capital expenditures or capex to improve its network.
T-Mobile (TMUS) once again led the US wireless sector in YoY (year-over-year) service revenue percentage growth in 3Q17.
Despite missing its top-line and bottom-line expectations, Charter Communications performed well in 3Q17 on a year-over-year basis.
Dish Network added net 16,000 pay-TV subscribers in 3Q17. The company had ~13.2 million pay-TV subscribers, down from 13.6 million in 3Q16.
Sprint’s agreement with Altice came just a day after Sprint ended its merger talks with T-Mobile (TMUS).
While AT&T lost 241,000 postpaid phone customers in 3Q17, Verizon added 274,000 postpaid customers.
In 3Q17, AT&T lost 251,000 satellite TV customers versus net customer additions of 323,000 in 3Q16.
The $85.4 billion merger between AT&T (T) and Time Warner (TWX) has reached a roadblock. President Trump hinted that the Department of Justice could file a lawsuit to block the deal if AT&T doesn’t agree to several conditions.