Sprint made its quarterly earnings call in an announcement of a possible merger “in the near future,” infusing confidence in shareholders and investors and pushing shares value up to 10% in a single day.
Sprint made its first quarterly profit in three years earning $206 million in April, May, and June. Marcelo Claure, Sprint CEO and president, said the company achieved its best results in more than a decade by cutting costs and improving its network.
Sprint also added 88,000 post-paid phone customers to its 100,ooo new subscribers acquired in July, according to USA Today. This represents eight consecutive quarters of subscriber growth. Net operating revenue was $8.16 billion, up from $8.01 billion in the same period of last year.
The real boost for Sprint’s share value may be that a merger is in the works. “We’ve had enough conversations to start making choices soon,” said Claure in a conference call a Kansas City Star journalist. In that conference call, Sprint’s CEO also dismissed as “not factual” the previously reported talks between his company and wireless carrier rival T-Mobile. He stated that “Sprint was never offered to Charter for Charter to buy. It was part of a bigger play,” according to a CNBC report.
A merger or acquisition of Charter, the second largest cable and internet provider, is still in play as Softbank’s CEO, Masayoshi Son, has continuously showed interest in the company. According to sources cited by Reuters, Masayoshi could make an offer for Charter soon.
Sprint’s CEO pointed out that the future of the carrier will be better with a partner in a merger, but the Kansas-based company will continue its aggressive cost cutting efforts and simplification of services to return to profitability.