The third largest US long-distance telephone company Sprint today said its first-quarter net income fell 72 per cent amid lower calling prices, stiff competition and investments to build its data and wireless businesses.
Kansas City-based Sprint's net income dropped to $315 million, or 36 cents a share, compared with $1.118 billion, or $1.25 a share a year ago.
Operating income fell 30 per cent to $532 million from $758 million a year ago. Operating revenues were $4.358 billion, down from $4.404 billion a year ago. Consolidated revenues increased 14 per cent to $6.28 billion.
Sprint, the company's wireless telephone arm, added about 875,000 customers, which included 826,000 direct customers and 49,000 resale customers.
Shares of Sprint have plunged 60 per cent over the past year amid a broad sell-off in telecommunications stocks and concerns about shrinking sales of consumer long-distance services. The stock closed at $23.41 yesterday.