uploads///Telecom Q Prepaid Net Additions

Can Sprint Continue Its Momentum in Prepaid?

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Sep. 21 2018, Updated 6:31 a.m. ET

Sprint’s prepaid net additions

Sprint (S) added 3,000 net prepaid subscribers in the first quarter of fiscal 2018, which ended in June. That compares to 170,000 in the previous quarter. The significant sequential fall was due to seasonally lower Boost brand gross additions.

During the Goldman Sachs Communacopia Conference on September 14, Michel Combes, Sprint’s CEO, spoke about the company’s prepaid business. He said the company remains confident that it will report positive prepaid net additions in fiscal 2018. He said, “So prepaid is all about value proposition, distribution and communication. And I strongly believe that after a few quarters of adjustments in the past, we have it right and we are doing great work.”

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Sprint’s prepaid customers rose ~3.6% YoY (year-over-year) to 9 million as of June 30. By comparison, T-Mobile’s (TMUS) prepaid subscribers increased ~3.3% YoY to 21 million, while Verizon’s (VZ) prepaid customers fell ~11.3% YoY to 4.8 million. AT&T’s (T) prepaid subscribers rose ~14.3% YoY to 16.2 million as of June 30.

Peer comparison of prepaid net additions

AT&T gained 453,000 net prepaid subscribers in the second quarter, while T-Mobile added 91,000. Verizon lost 236,000 prepaid subscribers in the second quarter.

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