OVERLAND PARK, Kan. (BUSINESS WIRE), February 05, 2015 – Sprint Corporation (NYSE: S) today reported operating results for the third fiscal quarter of 2014, including adding nearly 1 million Sprint platform connections – a 42 percent increase year-over-year – as customers responded positively to the company’s new value proposition. The company also 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.

“We are pleased with the growth in sales in the quarter and the improving quality of our customer base as we begin our turnaround plan,” said Sprint CEO Marcelo Claure. “However, we acknowledge there is a long way to go to reach our goals, including lowering our postpaid churn rates to competitive levels. Our network performance continues to improve, and we are now focused on a strategy that will unlock the true potential of our spectrum assets. I am confident that we have the right plan in place to be successful.”

“I am encouraged by the progress and improving trends in the Sprint business,” said Masayoshi Son, Sprint chairman. “Marcelo and his team have developed, and are executing against, a clear plan that will make Sprint more competitive and better positioned for long-term growth.”

New Offers Lead to Sales Growth and Higher Value Customers

Sprint continues to launch simple, straightforward offers designed to save customers money. During the quarter, Sprint offered to cut rate plans in half for AT&T and Verizon customers, expanded the industry-first leasing plan for iPhone® to additional devices and lease terms, and launched the new Data Boost plans on Boost Mobile. These actions, among others, resulted in improvement in Sprint platform sales.

Highest postpaid gross additions in three years

Highest postpaid upgrade rate on record at 11.5 percent illustrating a recommitment from existing customers

Highest prepaid gross additions with nearly 30 percent year-over-year growth

This growth was accompanied by a simultaneous improvement in the quality of sales during the quarter.

Highest percentage of prime credit quality postpaid gross additions on record

postpaid gross additions on record Postpaid phone gross additions grew 20 percent year-over-year

gross additions grew 20 percent year-over-year New consumer account gross additions with three or more lines more than doubled from the year-ago period

Sprint Platform Adds Nearly 1 Million Connections

Sprint platform net additions were 967,000 compared to 590,000 in the prior quarter and 682,000 in the prior year quarter. Postpaid net additions of 30,000 increased by 302,000 sequentially and decreased by 28,000 year-over-year. Postpaid phone losses of 205,000 improved by 295,000 sequentially and 202,000 year-over-year, as higher prime credit quality gross additions were partially offset by higher churn. Device financing options accounted for 46 percent of postpaid sales in the quarter, compared to 27 percent in the prior quarter and 7 percent in the year-ago period. Prepaid net additions of 410,000 were up 88,000 year-over-year due to growth in the Boost brand. Wholesale net additions of 527,000 were up 225,000 from the prior year quarter, mostly driven by connected devices.

Sprint had 55.9 million total connections at the end of the quarter.

Quarterly Financial Results

Net operating revenues of $9 billion were down 2 percent year-over-year, as lower service revenue was mostly offset by higher equipment revenue.

Consolidated Adjusted EBITDA* of $1.04 billion declined 10 percent from the prior year period, driven mostly by declines in the Wireline segment.

Wireless Adjusted EBITDA* of $1.03 billion was relatively flat from the prior year period. Lower service revenues primarily due to postpaid phone customer losses and additional expenses related to higher sales volumes were mostly offset by higher equipment revenue from the introduction of installment billing and lower cost of service expenses related to roaming and the completion of the 3G and voice network replacement.

Operating loss was $2.5 billion compared to an operating loss of $576 million in the year-ago quarter, as the company recorded a non-cash impairment charge of approximately $2.1 billion. The non-cash charge includes a $1.9 billion reduction to the Sprint trade name and approximately $200 million to reduce the carrying value of wireline network assets. Excluding this non-cash impact, operating loss would have improved $169 million year-over-year.

Significant Network Performance Improvements

Sprint is focused on leveraging its spectrum portfolio to provide a network that delivers the consistent reliability, capacity and speed that customers demand. During the quarter, Sprint’s 800 MHz voice deployment reached nationwide availability, 4G LTE coverage expanded to cover 270 million people, and the 2.5 GHz 4G LTE deployment now covers 125 million people. As a result, network performance continued to improve in third-party measurements.

According to independent mobile analytics firm RootMetrics, Sprint was the carrier with the highest net gain in first-place or shared first-place second half 2014 metro network award wins in the categories of Overall, Reliability, Call and Text performance.

Sprint recently ranked second for overall network performance in Chicago, according to RootMetrics.

Recent reports by RootMetrics gave Sprint’s network 133 first-place or shared first-place second half 2014 Metro RootScore Awards for reliability, call and/or text performance in cities across the country.

Awards for reliability, call and/or text performance in cities across the country. Sprint’s lowest dropped call rate ever and over 50 percent year-over-year improvement, based on independent, third-party data provided by Nielsen.ii

Conference Call and Webcast

Date/Time: 8:30 a.m. ET, Feb. 5, 2015

Call-in Information U.S./Canada: 866-360-1063 (ID: 63815208) International: 706-679-4164 (ID: 63815208)

Webcast available via the Internet at www.sprint.com/investors

Additional information about results, including the “Quarterly Investor Update,” is available on our Investor Relations website

Financial results in the enclosed tables include a predecessor period related to the results of operations of Sprint Communications, Inc. (formerly Sprint Nextel) prior to the closing of the SoftBank Group Corp transaction on July 10, 2013, and the applicable successor periods. In order to present financial results in a way that offers investors a more meaningful comparison of the year-to-date results, we have combined the 2013 results of operations for the predecessor and successor periods. For additional information, please reference the section titled Financial Measures. Trended financial performance metrics on a combined basis can also be found at our Investor Relations website at www.sprint.com/investors.

Quarter To Date Year To Date 12/31/14 9/30/14 12/31/13 12/31/14 12/31/13Sprint platform: Postpaid30 (272 ) 58 (423 ) (108 ) Prepaid410 35 322 (97 ) (80 ) Wholesale and affiliate 527 827 302 1,857 255 Total Sprint platform 967 590 682 1,337 67 Nextel platform: Postpaid– – – – (1,060 ) Prepaid– – – – (255 ) Total Nextel platform – – – – (1,315 ) Transactions: Postpaid(49 ) (64 ) (127 ) (177 ) (481 ) Prepaid(39 ) (55 ) (103 ) (171 ) (179 ) Wholesale 13 13 25 53 38 Total transactions (75 ) (106 ) (205 ) (295 ) (622 ) Total retail postpaid net losses (19 ) (336 ) (69 ) (600 ) (1,649 ) Total retail prepaid net additions (losses) 371 (20 ) 219 (268 ) (514 ) Total wholesale and affiliate net additions 540 840 327 1,910 293Sprint platform: Postpaid29,495 29,465 30,149 29,495 30,149 Prepaid15,160 14,750 15,621 15,160 15,621 Wholesale and affiliate 10,233 9,706 8,164 10,233 8,164 Total Sprint platform 54,888 53,921 53,934 54,888 53,934 Nextel platform: Postpaid– – – – – Prepaid– – – – – Total Nextel platform – – – – – Transactions:Postpaid409 458 688 409 688 Prepaid379 418 601 379 601 Wholesale 253 240 131 253 131 Total transactions 1,041 1,116 1,420 1,041 1,420 Total retail postpaid end of period connections 29,904 29,923 30,837 29,904 30,837 Total retail prepaid end of period connections 15,539 15,168 16,222 15,539 16,222 Total wholesale and affiliate end of period connections 10,486 9,946 8,295 10,486 8,295Retail postpaid 1,180 1,039 922 1,180 922 Wholesale and affiliate 5,175 4,635 3,578 5,175 3,578Sprint platform: Postpaid 2.30 % 2.18 % 2.07 % 2.18 % 1.96 % Prepaid 3.94 % 3.76 % 3.01 % 4.05 % 3.94 % Nextel platform: Postpaid – – – – 33.90 % Prepaid – – – – 32.13 % Transactions:Postpaid 4.09 % 4.66 % 5.48 % 4.30 % 7.65 % Prepaid 4.95 % 5.70 % 8.18 % 5.70 % 8.66 % Total retail postpaid churn 2.33 % 2.22 % 2.15 % 2.21 % 2.29 % Total retail prepaid churn 3.97 % 3.81 % 3.22 % 4.09 % 4.17 %Connections (in thousands): Postpaid – – – – 364 Prepaid – – – – 101 Rate: Postpaid – – – – 34 % Prepaid – – – – 39 %

(a) We acquired approximately 352,000 postpaid connections and 59,000 prepaid connections through the acquisition of assets from U.S. Cellular when the transaction closed on May 17, 2013. We acquired approximately 788,000 postpaid connections, 721,000 prepaid connections, 93,000 wholesale connections and transferred 29,000 Sprint wholesale connections that were originally recognized through our Clearwire MVNO arrangement to Transactions postpaid connections as a result of the Clearwire acquisition when the transaction closed on July 9, 2013.

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12/31/14 9/30/14 12/31/13 12/31/14 12/31/13 7/10/13 12/31/13Sprint platform: Postpaid $ 58.90 $ 60.58 $ 64.11 $ 60.52 $ 64.17 $ 64.25 $ 64.20 Prepaid $ 27.12 $ 27.19 $ 26.78 $ 27.23 $ 26.01 $ 26.96 $ 26.36 Nextel platform: Postpaid $ – $ – $ – $ – $ – $ 36.66 $ 36.66 Prepaid $ – $ – $ – $ – $ – $ 34.48 $ 34.48 Transactions: