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EARNINGS ROUNDUP

Acquisitions boost Sprint Nextel's profit

March 01, 2007|From Bloomberg News

Sprint Nextel Corp. said fourth-quarter profit increased 32% after acquisitions boosted revenue.

Net income rose to $261 million, or 9 cents a share, from $197 million, or 7 cents, a year earlier, the Reston, Va.-based company said. Sales advanced 6.7% to $10.4 billion, beating the $10.3-billion average of analyst estimates compiled by Bloomberg.

The purchase of affiliates including Nextel Partners Inc. last year helped Sprint make up for the 306,000 customers it lost to rivals such as AT&T Inc. in the period.

Chief Executive Gary Forsee reiterated that subscriber growth would return in the second quarter as the company introduced trendier phones, new advertising and network improvements.

Sprint stock posted its sharpest one-day gain in four months as the results fueled speculation that the company might become a takeover target. Shares rose 85 cents to $19.30.

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