Sprint Profits Take Hit Despite Record Q3 Revenue

Sprint Corp. today announced record consolidated third-quarter revenue of US$5.11 billion, an increase of 18 percent over the US$4.32 billion the telecommunications carrier posted for the corresponding period a year ago.

Although its core fixed-line network businesses turned a profit, losses incurred in Sprint's wireless operations led to an overall net loss on a consolidated basis, even as Sprint said in a statement it had added 720,000 new wireless customers during the quarter ended Sept. 30, 1999.

MCI WorldCom Inc. and Sprint earlier this month announced plans to merge in a transaction valued at $129 billion.

Awaiting approvals from MCI WorldCom and Sprint shareholders, as well as U.S. and foreign regulatory and antitrust authorities, the pending merger is expected to close in the second half of 2000, Sprint said in the statement today.

Sprint's FON Group, consisting of the company's core fixed-line businesses, posted net income of $359 million, or 41 cents per common share, on revenue of $4.34 billion for this year's third quarter, as compared to $415 million, 47 cents and $4.04 billion, respectively, for the same quarter a year ago.

Widening losses from Sprint's foundering Global One joint venture with Deutsche Telekom AG and France Telecom SA were cited as a major reason behind the decrease in the group's profitability.

The PCS Group, Sprint's wireless personal communication services business, reported a net loss of $615 million, or $1.31 per share, on net revenue of $844 million, Sprint said in a statement. For the corresponding quarter last year, Sprint PCS posted a net loss of $176 million, or $1.04 per share, on revenue of $320 million.

Sprint, in Westwood, Kansas, can be reached at +1-913-624-3000 or at http://www.sprint.com.

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