Profit jumped at Sprint in the three months through September despite a decline in new wireless customers.
Net income at the Overland Park, Kan.-based telecommunications firm increased significantly to $196 million, as revenue climbed 6.4 percent to $8.4 billion, driven by higher equipment sales and rentals.
Sprint, which is awaiting federal approval for its merger with T-Mobile, added 109,000 new customers that pay a monthly bill, a year-over-year decline, but much better than analysts expected. Including prepaid and wholesale clients, the company still lost 20,000 customers in its fiscal second quarter.
The earnings show the success of Sprint’s strategy to balance growth while it increases network investments and adds digital capabilities, Chief Executive Officer Michel Combes said in a statement.
The firm’s stock rose 6.34 percent to $6.04 before the start of regular trading in New York.
Sprint’s merger with T-Mobile is expected to close in the first three months of 2019, T-Mobile’s top executive told investors on Tuesday.