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Old 07-27-2008, 09:59 AM
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Default Sprint Nextel drags on RadioShack

July 25 2008 - 1:31 pm EDT | Allie Winter | RCR Wireless News

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RadioShack Corp. reported a 6.9% increase in sales, driven by revenues from digital-to-analog TV converter boxes, GPS device sales, video gaming sales, prepaid wireless phones and improvement in AT&T Mobility’s postpaid offerings. However, Sprint Nextel Corp. continued to drag on the company; RadioShack said the carrier’s lackluster performance in postpaid affected its earnings.

“Despite an improvement in Sprint’s postpaid business vs. prior quarters, it continues to be a significant negative impact to the company’s performance,” RadioShack said. “But for the Sprint postpaid and related wireless accessory business, comparable store sales in the second quarter would have increased 12.7%.”

Further, RadioShack suffered a 2.7% decrease in kiosk business. The culprit? Sprint Nextel, again. The retailer saw significant decreases in the Sprint Nextel and Sam’s Club kiosks.

The retailer reached $995 million in total sales, up $60 million from last year’s $935 million amount in the second quarter.

Sprint Nextel will release its earnings Aug. 6, which will undoubtedly be compared with already-released results from AT&T Mobility Inc. and Verizon Wireless.
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