[February 22, 2013]

Research and Markets: Sprint - Company Profile - Not out of the Woods Yet: 2013

Research and Markets (http://www.researchandmarkets.com/research/xltbwq/sprint_company) has announced the addition of the "Sprint - Company Profile - Not out of the Woods Yet" report to their offering.

Weak 2012 Q4 results - slowing revenue & subscriber growth; continued losses

In Q4 revenue growth slowed with continued subscriber erosion; adjusted OIBDA & net losses were roughly static with the on-going transition to LTE and one network. A key concern is that Wireless CAPEX has doubled with Network Vision (LTE build).

Sprint (News - Alert) has lost subscribers for three quarters now with the Nextel network closure. In particular, it has lost lucrative post-paid subscribers as it re-captures only about half of Nextel subscribers when they churn; but just 2.1m Nextel subscribers remain. Excluding Nextel, Sprint-only subscriber growth slowed to 10%, driven by pre-paid & affiliates; this falls to 6% growth if re-captured Nextel subscribers are excluded.

- Q4 Total Revenue rose $283 m (+3%) to $9.0 bn. Growth slowed from 5% last Q. (See Page 29) Bear Base Bull

In turn, this is due to a slowing Wireless growth and continued decline in Long Distance. Valuation ($) 4.78 6.01 7.24

- Q4 adjusted OIBDA* rose $18 m (+2%) to $0.9 bn. Adjusted OIBDA margin was flat. Potential Return -18% 3% 24%

- Q4 EBIT* improved to -$0.3 bn. Margin rose 1.6% to -3.4%. Capital Structure Per Share Total

- Net loss* improved $0.4 bn to -$0.8 bn. ($) ($ Bn)

- Other Income (Clearwire (News - Alert)) and fewer taxes, offset higher interest payments. Share Price 5 .86

- But accelerated depreciation of $0.4 bn meant that the Net Loss worsened by 1%. Number of Shares (bn) 3 .0

- EPS (loss) increased slightly, by 1%, to -$0.44. Market Capitalization 1 7.6

- FCF deteriorated, by -$1.3 bn, with worsening working capital & CAPEX. Net Cash / (Debt) -5.4 -16.1

* = Excludes Unusual Items (accelerated depreciation for the closure of the Nextel platform) Enterprise Value (EV) 11.2 3 3.8

Comparisons (e.g. margins changes & growth rates) are stated on a Year-on-Year (YoY) basis.

For more information visit http://www.researchandmarkets.com/research/xltbwq/sprint_company

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