Sprint posted its first net profit in three years in its fiscal first quarter to June, and EBITDA rose to its highest level in almost 10 years.
The No. 4 USA wireless carrier, majority owned by Japan's SoftBank Group Corp, is exploring options including a merger with rival carrier T-Mobile US Inc as well as a tie-up with cable provider Charter Communications Inc.
Sprint has long sought a deal as it is unprofitable and the wireless market has gotten more competitive. In that time, Sprint said it has trimmed $4 billion from annual operating costs.
This was Sprint's first net income in three years and the highest Adjusted EBITDA in almost 10 years.
The announcement about Charter turning down Sprint adds on to the tension existing in the media, cable and telecommunications industries. "We have spoken to everybody and we have choices and when the time is right we going to strike a deal", he said. This comes after The Wall Street Journal said that Charter wasn't interested in Sprint.
A person familiar with the matter told Reuters earlier this week that SoftBank Chief Executive Masayoshi Son is considering making an acquisition offer for the cable company to combine it with Sprint as early as the end of August. Our skepticism about Sprint's deal-making has nothing to do with Sprint's intrinsic attractiveness; its subscriber base is inherently appealing to anyone wanting scale, and its spectrum trove of 2.5 GHz spectrum really does have incremental value. "Everybody has shown a high level of interest in evaluating Sprint as a potential merger partner".More news: The PS4 Has Now Shipped 63.3 Million Units, Sony's Revenue Trending Upward
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Sprint achieved almost $370 million of combined reductions in cost of services and SG&A expenses in the quarter, bringing the total reduction during the last nine quarters to almost $4 billion.
What Claure didn't discuss was the slight decrease in the company's total liabilities.
For as much effort as Sprint has put into its turnaround plans, they still haven't been enough, forcing Claure to look at a variety of options that will buy the company time to keep working on its rebound.
The fourth-largest carrier in the United States, controlled by Japan's SoftBank, reported a net income of $US206 million, or 5 cents per share, for the first quarter of this fiscal year.
Net income came in at $206 million, marking a significant improvement over the $302 million it posted during the same period a year ago.
Net operating revenue was $8.16 billion, up from $8.01 billion. Analysts had expected a loss of a penny a share on $8.11 billion in revenue.