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About Sprint Communications, Inc.

Sprint Communications is one of the largest providers of mobile phone service in the US, offering wireless and wireline voice and data transmission services to subscribers in all 50 US states, Puerto Rico, and the US Virgin Islands. Sprint offers premium postpaid service under its own brand as well as prepaid mobile access through its Virgin Mobile USA and Boost Mobile subsidiaries, which target a younger demographic. Sprint also provides cellular access to other carriers and resellers on a wholesale basis. The company's legacy wireline business provides service primarily to corporate customers and other carriers. Japan's SOFTBANK owns about 80% of Sprint. In 2019, Sprint and T-Mobile were trying to complete a merger.

Financial Performance

Sprint's revenue had fluctuated over the past several years depending on the cost and success of promotions to attract customers from other carriers.

Revenue ticked 4% higher in 2019 (ended March) to $33.6 billion, up about $1.2 billion from 2018, despite a 4% drop in retail service sales due to an increase in subscribers on lower price plans and promotional activities. What lifted Sprint's revenue was higher equipment sales and rentals, which rose 25% in 2019 from 2018. However, the increase was due to an accounting change that allocated more money to equipment sales than in the past.

Sprint reported a $1.9 billion net loss in 2019 compared to net income of $7.4 billion in 2018. In 2019, the company took charges for several non-recurring items, including a $2 billion non-cash impairment charge.

Sprint's treasury held $7 billion in cash in 2019 compared to $6.6 billion in 2018. Operations generated $10.4 billion in 2019, while investing activities used $95 billion and financing activities used $483 million.

The company's high level of debt -- about $40 billion -- could restrict its ability to borrow money at lower interest rates, limiting its operating flexibility and ability to repay outstanding debt as it matures.

 

Strategy

Sprint had achieved postpaid subscriber growth, cut about $1 billion in expenses over several years, and was ready to roll out a 5G network in several US cities in 2018. Further, the company, with the backing of owner Softbank, had invested in upgrading its network around the country. But even with all that, Sprint reached the conclusion that it was better off partnering with T-Mobile to compete in the wireless market. The deal the companies announced in April 2018 would make T-Mobile majority owner of the combined company, which would operate under the T-Mobile name.

The companies believe that their capacity to deploy a 5G network quickly is the key to gaining regulatory approval for the merger. The promise of 5G is that is can deliver much faster speeds at lower latency than 4G networks, enabling a range of other technologies such as self-driving cars and augmented and virtual reality.

Should federal regulators nix the deal, Sprint will still concentrate on building its 5G network. The company believes that the spectrum that it owns is the sweet spot for 5G transmission.

Sprint is building up its retail outreach, opening some 1,000 stores around the US under the Sprint and Boost brand names. It also has invested in digital sales capabilities to provide better interactions with customers.

If the T-Mobile merger fails, Sprint would remain #4 in wireless phone service, dwarfed by AT&T, Verizon, and to a lesser extent, T-Mobile. The company would have to maintain a certain level of investment in network upgrades, expansion, and other initiatives while carrying a good amount of debt.

Sprint Communications, Inc.

6200 SPRINT PKWY
Overland Park, KS 66251-6117
Phone: 1 (855) 848-3280

Firm Stats

Employer Type: Privately Owned
Senior Vice President and Controller: Charles L Hall
Senior Vice President Corporate Communications: William White
Director: Cherie Woodward
Employees (This Location): 950
Employees (All Locations): 28,000

Major Office Locations

Overland Park, KS

Other Locations

Birmingham, AL
Fairhope, AL
Hot Springs, AR
Benicia, CA
Camarillo, CA
Chico, CA
Chino, CA
Lomita, CA
Palm Desert, CA
Pinole, CA
San Marcos, CA
Sherman Oaks, CA
Simi Valley, CA
Tracy, CA
Lakewood, CO
Bristol, CT
Stamford, CT
Georgetown, DE
New Castle, DE
Clearwater, FL
Doral, FL
Fort Myers, FL
Jacksonville, FL
Lake Wales, FL
Lutz, FL
Miami, FL
Naples, FL
North Fort Myers, FL
Plant City, FL
Zephyrhills, FL
Athens, GA
Atlanta, GA
Buford, GA
Carrollton, GA
Columbus, GA
Roswell, GA
Winder, GA
Haleiwa, HI
Boise, ID
Burley, ID
Nampa, ID
Twin Falls, ID
Bolingbrook, IL
Burbank, IL
Country Club Hills, IL
Lake Zurich, IL
Matteson, IL
North Aurora, IL
Orland Park, IL
Spring Grove, IL
Fort Wayne, IN
Michigan City, IN
Terre Haute, IN
Overland Park, KS
Shawnee Mission, KS
Wichita, KS
Berea, KY
Dry Ridge, KY
Lexington, KY
Boutte, LA
Lafayette, LA
Acton, MA
Brockton, MA
Cambridge, MA
Dorchester, MA
Littleton, MA
Mattapan, MA
Millbury, MA
Orleans, MA
Peabody, MA
Somerset, MA
South Weymouth, MA
Stoughton, MA
Waltham, MA
Baltimore, MD
Gaithersburg, MD
Lexington Park, MD
Mount Airy, MD
Takoma Park, MD
Birch Run, MI
Commerce Township, MI
Minneapolis, MN
Joplin, MO
Sedalia, MO
Knightdale, NC
Raleigh, NC
Bellevue, NE
Newington, NH
Albuquerque, NM
Carlsbad, NM
Las Vegas, NV
New York, NY
Bellefontaine, OH
Sidney, OH
Youngstown, OH
Easton, PA
Philadelphia, PA
Reading, PA
Warrington, PA
North Myrtle Beach, SC
Brookings, SD
Clarksville, TN
Cookeville, TN
Madison, TN
Nashville, TN
Corpus Christi, TX
Dallas, TX
Houston, TX
Irving, TX
Mcallen, TX
Port Arthur, TX
San Antonio, TX
St George, UT
Arlington, VA
Fredericksburg, VA
Hardy, VA
Harrisonburg, VA
Lynchburg, VA
Winchester, VA
Williston, VT
Charleston, WV
Elkins, WV
Morgantown, WV
Unionville, Canada