What Factors Drove Sprint’s EBITDA Expansion During The Last Quarter?
Sprint’s (NYSE:S) adjusted EBITDA jumped 82% y-o-y during Q4 CY’15, despite falling revenues. While this was partly driven by lower SG&A expenses, much of the growth came from an increasing take rate for the company’s device leasing program. Under the program, the cost of a smartphone is not recorded under cost of products but rather is depreciated over the customer lease term, positively impacting EBITDA.
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Have more questions about Sprint ? See the links below:
Where Will Sprint’s 5 Year Revenue Growth Come From?
What Drove Sprint’s Revenue And EBITDA Over The Last 5 Years?
Mobile, Wholesale, Landlines: What’s Sprint’s Revenue & Gross Profit Breakdown?
Notes:
1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment and ask questions on the comment section, or email content@trefis.com
2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our complete analysis for Sprint
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