Sprint Nextel this morning released its earnings for the fourth quarter of 2011 as well as the full-year results.
The company reported a net loss of $1.3 billion for the quarter, and $2.9 billion for the whole of 2011.
The company reported total net subscriber additions of 1.6 million during the quarter, the best quarterly result in six years and bringing total subscribers to the highest level in Sprint’s history.
Now serving roughly 55 million customers, the company said it is seeing “strong iPhone sales”, selling 1.8 million of the popular smartphone in Q4, of which 40 percent was to new customers.
However, the iPhone launch also had a negative impact on its balance sheet, due to increased equipment net subsidies and sales expenses, the company said.
From the press release:
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 fourth quarter were to new customers.
Based on internal estimates, including incremental costs associated with iPhone sales, the combined impact of iPhone and Network Vision costs reduced fourth quarter Adjusted OIBDA margin, which was 10.8 percent, by approximately 8.8 percentage points.
Based on internal estimates, Sprint Nextel says the combined impact of iPhone and Network Vision costs reduced fourth quarter Adjusted OIBDA of $842 million by approximately $684 million.
In case you were wondering: OIBDA is operating income (or loss) before depreciation and amortization. Adjusted OIBDA excludes severance, exit costs, and other special items.