Archive for Friday, July 21, 2000

Sprint earnings up; PCS losses slowing

July 21, 2000

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— Despite costs associated with its failed merger with WorldCom, Sprint Corp. reported higher-than-expected earnings Thursday for its regular phone and data business and a smaller loss in its wireless operation than analysts had forecast.

Operating income from Westwood-based Sprint's core business rose 13 percent to $926 million, or 67 cents per share, in the second quarter, compared to $821 million, or 56 cents per share, during the same quarter last year.

Analysts had predicted per-share earnings of 49 cents.

The failed merger with WorldCom cost Sprint $161 million, or 12 cents a share. It also led to a 5 percent decline in second quarter profits $365 million, or 42 cents a share, compared to $387 million, or 45 cents a share, a year earlier.

Revenue rose 5 percent to $4.43 billion from $4.2 billion a year ago.

Sprint PCS, the firm's wireless division, acquired 893,000 new customers, a 43 percent increase over the second quarter of last year. That doubled the division's revenue, to $1.46 billion, compared to $736 million in the same period last year. Its operating losses dropped to $469 million, or 46 cents per share, from $708 million, or 61 cents a share, a year ago. Analysts had expected a loss of 49 cents a share.

The failed WorldCom merger cost the PCS division $24 million, or 2 cents per share.

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