Sprint earnings almost quadruple

Thursday, Feb. 3, 2005 | 11:21 a.m.

STAFF AND WIRE REPORTS

OVERLAND PARK, Kan. -- Sprint Corp. said today that fourth-quarter earnings almost quadrupled on a record quarterly increase in wireless customers.

The company posted fourth quarter net earnings of $437 million, or 29 cents a share, up from $110 million, or 7 cents a share, in the year-ago period.

Sprint, the dominant local telephone service provider in the Las Vegas area, has about 1,500 local employees and more than 870,000 local residential and business access lines.

Without special one-time items included, adjusted earnings per share were 31 cents, compared with 17 cents in the year-ago period. Analysts surveyed by Thomson First Call had predicted earnings of 32 cents a share.

The quarterly results were the first since December's announcement that Overland Park-based Sprint is acquiring Nextel Communications Inc., based in Reston, Va., for $35 billion in stock and cash.

Sprint has announced that it will spin off the local telephone company -- which serves Las Vegas and 17 other cities -- following the merger.

Sprint's revenue for the quarter increased 4 percent to $6.93 billion as the company said it added a record 1.58 million wireless customers, including 526,000 from its Sprint PCS unit, 923,000 from wholesale and 133,000 through affiliated partners. That brought its total wireless customers at the end of 2004 to 24.8 million, up 22 percent for the year.

"At the onset of 2004, we described our intent to transform our business to focus on the distinctive needs of business and consumers, as well as outlined growth and expense reduction goals," Gary Forsee, Sprint's chairman and chief executive, said in a statement. "We exit the year in full stride in delivering solid operational and financial performance. This execution has led to substantial value creation for our shareholders and set a foundation that is expected to benefit our customers and investors in the year ahead."

Sprint shares rose 9 cents to $24.57 in early trading.