Sprint’s fiscal 3Q14 results
Sprint (S) reported its fiscal 3Q14 results on February 5, 2015. The company’s fiscal year starts in April. In this series, we’ll analyze the company’s results for the quarter.
Sprint is one of the four national wireless carriers in the US. The other wireless domestic carriers are Verizon (VZ), AT&T (T), and T-Mobile (TMUS). Together these four telecoms accounted for ~34.9% of the iShares U.S. Telecommunications ETF (IYZ) on March 5, 2015. Individually, Sprint represented ~4.6% of IYZ on the same date.
High sales for telecoms
High retail sales usually mark the December quarter due to the holiday season. For telecoms, the quarter was particularly significant in 2014. It followed the launch of Apple’s (AAPL) iPhone 6 in September 2014. Apple always launches its iPhones in September.
However, the telecoms eagerly awaited the launch of Apple’s iPhone 6 in 2014. The phone was launched two years after the launch of the iPhone 5.
Sprint also witnessed high sales volume during the quarter.
Sprint’s gross additions
Sprint’s gross additions grew in both the prepaid and postpaid segments during fiscal 3Q14. During the quarter, Sprint reported its highest postpaid gross customer additions in the last three years.
The company’s prepaid gross additions also grew significantly—both YoY (year-over-year) and sequentially—in fiscal 3Q14. In the prepaid segment, the growth in customer gross additions was the highest Sprint has ever achieved. The prepaid segment’s customer gross additions increased by ~30% YoY during the quarter.