Sprint Tops Subscriber Estimates on Path to T-Mobile Merger
(Bloomberg) -- Sprint Corp. topped wireless-subscriber growth estimates, helping allay concerns that the carrier is doomed if it can’t complete its proposed merger with T-Mobile US Inc.
- The company gained 309,000 postpaid wireless subscribers in the fiscal third quarter, ahead of the 157,000 average analyst estimate.
- Sprint’s quarterly results matter less to investors than whether its $26.5 billion merger closes. The company still expects the deal to be completed in the first half, but it needs approval from the Federal Communications Commission and the Justice Department’s antitrust division. The transaction already won U.S. national security approval from the Committee on Foreign Investment in the U.S. -- a hurdle that stemmed from both parties having foreign backers.
- The latest numbers suggest Sprint has more breathing room, with or without T-Mobile. But it remains the fourth-largest wireless carrier in the U.S., fighting for market share in a saturated market.
- Sprint shares fell as much as 0.7 percent to $6 in New York trading Thursday. They were up 3.7 percent this year through Wednesday’s close, trailing the 6.9 percent gain of the S&P 500 Index.
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