Shares of Sprint Nextel Corp. climbed 11 percent on Monday after Sprint announced it had paid back $1 billion of its $4.5 billion debt with existing cash.
Sprint, the number three mobile provider in America, is predicted to break even in subscriber numbers for this quarter for the first time since 2007. Already today, Sprint shares have gone up 34 cents on the NYSE.
Despite such positive news, Sprint continues to face challenges. There has been a drop off in postpaid monthly subscribers for the last several quarters; however, such losses are expected to be compensated by the continued growth of the company’s prepaid services. Boost Mobile, a prepaid phone service of Sprint, has continued to experience gains as more inexpensive, simple mobile plans appeal to a wider audience during the recession.
Sprint closed the third quarter with $5.9 billion in cash and equivalents, with $1 billion going toward eliminated outstanding credit balances. At the end of the third quarter, Sprint had an estimated $20.9 billion in long-term debt, financing and capital lease obligations.
About EQUITIES:
Since 1951, EQUITIES Magazine has been a leading media company providing business editorial content designed to serve the needs of business leaders, professionals, institutional investors and retail investors. We are focused on business and the business of making money, not on lifestyle subjects. We publish original reporting in print and on the Internet at www.equitiesmagazine.com, as well as select content at www.nasdaq.com. For 28 years we have hosted our own branded investor conferences that connect public company CEO’s with our loyal readers in the investment community.
Sign up for a free one-year subscription to EQUITIES Magazine.
