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Does Sprint Expect to Incur Higher Capex in Fiscal 2019?

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Jun. 5 2019, Published 12:04 p.m. ET

Sprint’s capital expenditure

Sprint (S) has been continuously spending on capex to improve its network. In the fourth quarter of fiscal 2018 (quarter ended March 31), Sprint had spent a total of $2.85 billion on cash capital expenditures, which includes $1.15 billion of cash paid for network capital expenditures and $1.70 billion of cash paid for leased devices capital expenditures. In the fourth quarter of fiscal 2017, Sprint had spent a total of $2.71 billion on cash capital expenditures, which includes $0.78 billion of cash paid for network capital expenditures and $1.93 billion of cash paid for leased devices capital expenditures.

The YoY increase in cash paid for network capital expenditures was primarily due to higher spending on Next-Gen network initiatives.

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Expected capex investments

For the full-year fiscal 2019 (year ending March 2020), analysts expect Sprint’s cash capital expenditures to be about $9.3 billion, which is including leased devices. In fiscal 2018, Sprint had spent $12.4 billion on cash capital expenditures including leased devices.

In fiscal 2019, AT&T (T) expects its gross capex to be in the $23.0 billion range, while T-Mobile (TMUS) is expecting its cash capex excluding capitalized interest to be between $5.4 billion and $5.7 billion.

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