8 Companies You Use, That Will Close in 2017-Sprint


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Sprint is among the familiar names that once again appear on the lists of downtrodden companies. The company saw a decline in revenue even though it added more subscribers. The problem here is that its biggest competitors are adding subscribers faster and as of August of last year, the company fell to number 4 in the country’s carrier rankings. Quarterly revenues continue to decline while postpaid business is not looking strong and they have a high debt and no dividend equal making it an unattractive stock.

In May of 2016, shares of Sprint increased 10% from their morning low leading investors to cheer the company’s report, focusing on cost-cutting measures. However, critics and analysts warned to not buy into the hype because the carrier was still struggling. Sprint released a statement that it had “delivered more postpaid phone net additions than Verizon and AT&T for the first time on record in the fiscal fourth quarter.” While that may sound impressive, the numbers are not. The numbers only added 56,000 subscribers which was ¼ of the year period prior and around 1/10 of what in saw in the December quarter. Meanwhile, average revenues per user declined sequentially by more than 1.5%.

Sprint can talk a big game about the number of subscribers it is adding, but the company continues to finish fiscal quarters with declining revenue numbers. The company still isn’t bringing in enough new customers as the wireless war continues and gets more competitive. Consumers are now paying less and less for services meaning Sprint needs to be adding millions of new subscribers each quarter and that just is not happening.

Now to think of what the numbers could be if Sprint stops adding subscribers or even loses customers in the coming months. There has been a slow down in US phone upgrades as was seen with Apple’s latest results. This leaves Sprint Corporation in an unstable situation with the future of the company on the line.