At last Softbank, $22 Bn bet
Sprint Corp showing positive trend. In just concluded quarter it showed
positive net postpaid user addition. At the same time, the churn rate is flat.
Sprint Corp management made it clear that they will be achieving EBITA in
between $9.5 Bn to $10 Bn which is 20% to 25% more than last year. Sprint is
also on right track to achieve $2 Bn saving through cost cutting which will
reflect in their bottom line and will help the organization to reduce huge debt
level.
For the last many year, Sprint struggled to retain their customer base due to some of the strategic mismanaged
investment on network upgrade that led its competitor to snatch its premium
postpaid customer base. Its competitor left no stone un-turn to create a
perception among customer base that Sprint network is inferior than others.
The current management strategic
move with product and network upgrade coupled with steep discount in pricing
helped Sprint to snatch back some of the lost customer base and at the same
time re positioned itself as revived service provider with major focus on
customer management.
In my point of view, FY18 will be
the year of Sprint and for investor looking for value generating company; they
should invest in Sprint Corp and treat it as Pension fund.
Disclaimer - Consult your
financial advisor before investing
