Sprint Reports $505M Loss Amid Subscriber Drop

May 12, 2008 12:01 p.m. EST

New York, NY (AHN) - Sprint Nextel announced Monday a $505 million net loss for the first quarter, more than double the $211 million lost the previous year. Sprint lost $29.5 billion in the fourth quarter, among the largest in Wall Street history.

Revenue for the quarter dropped 8 percent to $9.33 billion. The No. 3 wireless carrier lost 1.1 million post-paid customers, dropping total contract subscribers to 52.8 million. Post-paid churn, or rate of customer turnover, reach 2.45 percent, up from 2.3 percent.

Speaking to analysts Monday, Sprint CEO Dan Hesse said those post-paid numbers will improve "only" marginally" in the second-quarter," according to the Wall Street Journal.

Sprint lost 543,000 pre-paid customers, but the drop-off was somewhat balanced by 343,000 Boost Unlimited and 183,000 other affiliated subscribers.

Hesse had little comment on talk Sprint is considering either spinning-off or selling its Nextel business.