More like a marathon

28 February 2008 By Robert Cyran Follow @rob_cyran

The phone company s customer losses have entered warp speed. It thinks 1.2m will flee in the first quarter or more than all of last year. More worryingly Sprint s drawdown of $2.5bn of revolving debt suggests fear that a liquidity crisis could arise.

This content is for Subscribers only

Context News

Sprint Nextel has written down $29.7bn worth of goodwill resulting from its purchase of Nextel in 2004 and suspended its dividend. The operator reported revenues of $9.8bn in the fourth quarter, a drop of 6% compared to the same period last year.

The company borrowed $2.5bn from its revolving credit facility on February 27. Sprint said it has no need for the liquidity, but it wants to mitigate any financing risk associated with its $400m commercial paper outstanding and $1.85bn of debt maturing by May 2009.

Sprint predicts its postpaid subscribers will shrink by 1.2m in the first quarter.

Email a friend

Please complete the form below.

Required fields *