Sprint Corporation (NYSE:S) Q1 2018 Earnings Conference Call Transcript
Aug 01, 2018 • 08:30 am ET
Good morning and thank you for standing by. Welcome to the Sprint Fiscal First Quarter 2018 Conference Call. During today's conference call, all participants will be in a listen-only mode. Following the opening remarks, the conference will be opened for questions.
I would now like to turn the conference over to Mr. Jud Henry, Vice President of Investor Relations. Please go ahead, sir.
Good morning and welcome to Sprint's first quarter conference call. Joining me on the call today are Sprint's President and CEO, Michel Combes; our CFO, Andrew Davies; and our CTO, Dr. John Saw.
(Forward-Looking Cautionary Statements)
I will now turn the call over to Michel to provide you an update on our results.
Thank you, Jud, and good morning, everyone. I am pleased to share with you our fiscal first quarter results, which show our continued momentum as we focus on executing our operational plan as I transition to CEO, while Marcelo has been busy in Washington sharing the significant merits of our transformative transaction to combine with T-Mobile. As a reminder, this combination will accelerate the US leadership opportunity to rapidly bring the best national-wide 5G network to market with the breadth and depth needed to fuel a giant wave of innovation and disruption throughout the entire marketplace, including rural America.
In addition, the pro-consumer strategy will see US consumers and businesses get immediate benefits with an incredible set of amazing and innovative service offerings at lower prices in areas well beyond the traditional wireless business. The combined company will put America first and force the competition to invest and (inaudible) consumers while accelerating the creation of jobs and supporting business opportunities for the US economy.
Getting back to our operational performance, I am excited to share with you our fiscal first quarter results on slide four. First, we reached a major milestone by delivering sequential growth in wireless service revenue for the first time in more than four years. We generated the highest adjusted EBITDA in more than 11 years. Meanwhile, we delivered net income for the third consecutive quarter and operating income for the tenth consecutive quarter.
Furthermore, we delivered positive adjusted free cash flow for the fifth time in the last six quarters. At the same time, we balanced growth and profitability to deliver retail phone net adds for the sixth consecutive quarter. In addition, our network continued to improve as demonstrated by both Ookla Speedtest data and PC Magazine, which shows Sprint's network was the most improved of any national carrier in terms of average download speeds.
Turning to slide five, we delivered retail phone net adds for the sixth consecutive quarter with continued growth in both postpaid and prepaid. Our postpaid net additions were 123,000 in the first quarter and our phone net additions of 87,000, marked the 12th consecutive quarter of growth. We maintained the same level of postpaid phone gross adds year-over-year despite slowing industry switching decisions. Postpaid churn of 1.63% improved year-over-year for the first time in nearly two