Sprint's (NYSE: S) CEO Marcelo Claure appears to still have faith in the service provider's wireline business, telling investors that the business is strategic in letting it compete in the wireless business.
While not laying out a specific strategy, Claure will use the wireline network to deliver MPLS-based solutions to Sprint's business customers. "Going forward, we expect to place a greater focus and emphasis on MPLS solutions," Claure said during the earnings call.
Speculation about the future of Sprint's wireless business rose in November when Claure mentioned during the company's third-quarter earnings call that it was open to selling its wireline assets, a deal which would have allowed it to focus all of its attention on its growing wireless business.
Sprint's fourth-quarter wireline revenues were once again somewhat of a disappointment with all three of its segments--voice, data and Internet--declining sequentially and year-over-year.
Total wireline operating revenues were $692 million, down sequentially from $708 million in the third quarter of 2014. Voice and data services were $289 million and $52 million, a decline from $294 million and $53 million in the third quarter, while Internet revenues were $333 million, down from $340 million.
From an overall financial perspective, Sprint reported consolidated net operating revenues of $9 billion, an operating loss of $2.5 billion, which included non-cash charges of $2.1 billion, and adjusted EBITDA of $1.04 billion.
Shares of Sprint were listed at $4.87, up 29 cents or 6.33 percent, in late morning trading on the Nasdaq stock exchange.
- see the earnings release
Special report: Wireline telecom earnings in the fourth quarter of 2014
Sprint's new CEO open to selling wireline business
Sprint's wireline revenues drop to $746M on lower voice, data, Internet results
Sprint to serve up Google Apps for small businesses, enterprise customers
Sprint's Q1 wireline revenues slump to $770M
Mike Fitz, Sprint: Rising stars of wireline 2013