Sprint Announces First Profit in 11 Years

On the heels of last week’s news of the planned merger between Sprint and T-Mobile, Sprint announced Wednesday that the company has turned its first annual profit in 11 years. Sprint also named Michael Combes as the company’s new chief executive officer (CEO), effective by the end of May. Combes recently moved into the role of president and chief financial officer (CFO) after he moved from Altice to Sprint. Outgoing CEO Marcelo Claure will move into the role of executive chairman, replacing Masayoshi Son.

Claure reiterated his commitment to Sprint, stating that the changes will enable him to work with T-Mobile CEO John Legere as the two companies campaign to gain federal approval of the proposed merger between the telecommunications giants. Work has already started as both Claure and Legere have previously met with the U.S. Department of Justice and the Federal Communications Commission (FCC) in an effort to persuade the governing bodies to approve the merger plan.

Sprint’s fiscal year ended at the end of March and the company reported a profit of $7.4 billion, thanks in large part to the big bump garnered as part of the President Donald Trump’s tax reform bill. The Overland Park-based company added 44,000 new subscribers in the first three months of 2018, bringing its total customer base up to 54.625 million people. In contrast, T-Mobile boasts a total subscriber base of 74 million subscribers according to figure released at the end of March.

Tensions are high on the Overland Park campus as questions of job security are heightened in light of the proposed merger. Despite the profitable fiscal year, Sprint recently announced plans to lay off 500 employees from their 6,000-employee campus. The effects of the proposed merger have yet to be seen.