Sprint Loses 100,000 Subscribers and $30 Billion

Sprint Nextel Corp. (NYSE: S) reported today that it lost 100,000 subscribers in the fourth quarter, leading to a $29.6 billion loss, continuing a downward spiral for the company that isn’t expected to end any time soon.

Sprint predicted that it would lose another 1.2 million postpaid customers in the first quarter, and could see a similar fall off in the second quarter. The company responded by eliminating its dividend. Investors hammered the stock this morning, sending it down about 9 percent to just over $8 a share.

Consolidated net operating revenues in the quarter were $9.8 billion, compared to $10.4 billion in the fourth quarter of 2006. Full-year 2007 revenues were $40.1 billion versus $41.0 billion in 2006.

Wireless fourth quarter revenues were $8.5 billion, a 2 percent decline from the previous quarter and a 6 percent decline from the fourth quarter of 2006. On the bright side, data revenues increased 12 percent from the previous quarter and 26 percent from the same quarter a year earlier.

“The fourth quarter financial results reflect the challenges facing our wireless business,” said Dan Hesse, Sprint Nextel CEO, in a prepared statement. “We are making significant changes across the organization in an effort to improve execution, stabilize our customer base and deliver on the opportunity provided by our assets. Given current deteriorating business conditions, which are more difficult than what I had expected to encounter, these changes will take time to produce improved operating performance, and our near-term subscriber and financial results will continue to be pressured.”