2/8/2012 8:29 AM ET
(RTTNews) - Shares of Sprint Nextel Corp. (S: News ) are gaining in Wednesday's pre-market activity after the telecom services provider reported a "record" postpaid ARPU for its fourth quarter. Meanwhile, net loss widened from last year as one-time charges and higher iPhone-related expenses offset the benefits of increased wireless revenues. Looking ahead for fiscal 2012, the company projects significant decline in adjusted OIBDA.

Fourth-quarter net loss was $1.30 billion or $0.43 per share, wider than last year's $929 million or $0.31 per share. The results included pre-tax, non-cash charges of $241 million or $0.08 per share, consisting of asset and impairment charges, investment in Clearwire and severance costs.

On average, 28 analysts polled by Thomson Reuters expected the company to report a loss of $0.37 per share. Analysts' estimates typically exclude special items.

Net operating revenues grew 5 percent to $8.72 billion from $8.30 billion in the prior year as higher wireless service and equipment revenue offset by a 14 percent reduction in wireline revenue. Revenues beat analysts' estimate of $8.69 billion.

Sequentially, revenues grew 5 percent, which the company said was the largest sequential increase in more than five years.

Wireless revenues grew 8 percent driven by Sprint platform postpaid average revenue per unit, or ARPU, growth of $3.69 - the largest year-over-year increase on record across the U.S. wireless industry - as well as an increased number of net prepaid subscribers.

The company noted that strong revenue growth and cost management partially offset the impact of increased equipment net subsidies and sales expense associated with the successful launch of the iPhone. Forty percent of Sprint's 1.8 million iPhone sales in the quarter were to new customers.

Total wireless net subscriber additions in the quarter were 1.62 million, higher than 1.10 million last year. Total postpaid net additions were 161,000, driven by continued strength of the Sprint platform, which had net postpaid additions of 539,000, both higher than last year.

Prepaid net additions were 507,000 bringing total prepaid subscribers to nearly 14.8 million at the end of 2011, up 20 percent since the end of 2010.

Total retail postpaid ARPU was $58.59, higher than last year's $55.26, while retail prepaid ARPU declined to $26.62 from $27.95 a year earlier.

Dan Hesse, Sprint CEO said, "Our strong fourth quarter performance illustrates the power of matching iconic devices like the iPhone with our simple, unlimited plans and industry-leading customer experience."

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