Marcelo Claure steps down as Sprint CEO
Starting this month, Sprint (S) has a new CEO, Michel Combes. Sprint hired Combes in January as its CFO. Combes has replaced Marcelo Claure, who led Sprint into its now-pending merger with T-Mobile (TMUS).
Claure stepped down to take up a senior role at Softbank (SFTBY), the Japanese conglomerate that controls Sprint. T-Mobile, which aims to take over Sprint in a $26.5 billion deal, is controlled by Deutsche Telekom (DTEGY). Sprint retained Claure as executive chairman, allowing him to continue working on bringing Sprint and T-Mobile together.
T-Mobile executives to take senior roles in the combined company
If the T-Mobile-Sprint merger deal is approved, the combined company is expected to draw its top leaders from the T-Mobile side of the equation. T-Mobile leader John Legere is poised to become CEO of the combined company. Therefore, the length of Combes’s tenure as Sprint CEO will depend on whether the merger goes through. T-Mobile is already lobbying to secure governmental approval for its proposed takeover of Sprint.
Sprint posts surprise profit
Sprint has come a long way, from losing subscribers to gaining them. The company added 55,000 postpaid phone customers in the first quarter, which was its fiscal Q4 2017. Sprint also posted $69 million net profit in the quarter, beating expectations. Wall Street was expecting the company to a post a $349 million loss.
Sprint turned a profit in the latest quarter despite its revenue falling more than 5.3% YoY (year-over-year) to $8.1 billion. At AT&T (T), revenue fell 3.4% YoY in the first quarter, while revenue rose 6.6% at Verizon (VZ).