Sprint Gains Leverage in T-Mobile Talks With Customer AddsBy
Turnaround effort gives Chairman Son slightly stronger hand
Will forgo customary earnings conference call, as did T-Mobile
Sprint Corp. just gained some leverage in its push to merge with T-Mobile US Inc.
The wireless provider topped analysts’ estimates by adding 168,000 subscribers last quarter, rebounding from losses in the first half of 2017. And Sprint projected cash from operations will be close to break even this fiscal year.
The additional customers give Chairman Masayoshi Son a slightly stronger negotiating position as he enters the final stages of merger discussions with T-Mobile. Sprint, controlled by his SoftBank Group Corp., has been in on-and-off discussions since May with T-Mobile’s controlling company, Deutsche Telekom AG. The No. 3 and No. 4 U.S. wireless carriers have said that consolidation is necessary to compete with much larger rivals Verizon Communications Inc. and AT&T Inc.
Sprint had a net loss of 1 cent a share in the quarter, matching analyst expectations.
Both Sprint and T-Mobile opted to skip the customary earnings conference call to discuss results as merger discussions continue in the background for possibly another few weeks.
Sprint gained as much as 2.4 percent in early trading in New York. The shares had fallen 17 percent this year through Tuesday.