OVERLAND PARK, Kan., May 2, 2018 /PRNewswire/ —

Fiscal year 2017 postpaid phone net additions of 606,000 Third consecutive year of postpaid phone net additions Highest postpaid phone gross additions in six years Fiscal fourth quarter postpaid phone net additions of 55,000 marked the eleventh consecutive quarter of net additions

Fiscal year 2017 prepaid net additions of 363,000 compared to net losses of 1 million in the prior year Prepaid net additions for the first time in three years Prepaid churn of 4.58 percent was the lowest in three years Fiscal fourth quarter prepaid net additions of 170,000

Fiscal year 2017 net income of $7.4 billion , operating income of $2.7 billion and Adjusted EBITDA* of $11.1 billion Net income for the first time in 11 years, even when excluding $7.1 billion of one-time favorable impact from tax reform Highest operating income in company history and highest Adjusted EBITDA* in 11 years Fiscal fourth quarter net income of $69 million , operating income of $236 million , and Adjusted EBITDA* of $2.8 billion

Fiscal year 2017 net cash provided by operating activities of $10.1 billion and adjusted free cash flow* of $945 million Second consecutive year of positive adjusted free cash flow*

Completed thousands of tri-band upgrades on macro sites, added thousands of outdoor small cells and deployed more than 200,000 Sprint Magic Boxes

Sprint Corporation (NYSE: S) today reported operating results for the fiscal 2017 fourth quarter and full year, including its highest annual retail phone net additions in five years and the best profitability in company history with its highest annual operating income at $2.7 billion and annual net income for the first time in 11 years, even when excluding the one-time favorable impact from tax reform. The company also reported its highest adjusted EBITDA* in 11 years at $11.1 billion and its second consecutive year of positive adjusted free cash flow* at $945 million.

“In the fourth year of our turnaround, Sprint delivered the best financial results in company history as a result of growing our customer base and continuously improving our cost structure, while significantly improving our LTE network and initiating deployment for the first truly mobile 5G network in the U.S,” said Sprint CEO Marcelo Claure. “By executing our turnaround, we have positioned Sprint for strategic opportunities which led to our proposed merger with T-Mobile, which will create an entirely new level of innovation and disruption in the industry.”

Sprint Adds Nearly 1 Million Retail Phone Customers in Fiscal Year 2017

Sprint’s focus on both its postpaid and prepaid businesses resulted in nearly 1 million retail phone net additions in fiscal year 2017, an improvement of more than 1 million compared to the prior year.

Postpaid phone net additions of 606,000 marked the third consecutive year of net additions, as postpaid phone gross additions reached their highest level in six years. For the fourth quarter, postpaid phone net additions of 55,000 marked the eleventh consecutive quarter of net additions, including net additions in the business space for the sixth consecutive quarter. The current quarter and full year results included 44,000 net migrations from prepaid to non-Sprint branded postpaid.

of 606,000 marked the third consecutive year of net additions, as postpaid phone gross additions reached their highest level in six years. For the fourth quarter, postpaid phone net additions of 55,000 marked the eleventh consecutive quarter of net additions, including net additions in the business space for the sixth consecutive quarter. The current quarter and full year results included 44,000 net migrations from prepaid to non-Sprint branded postpaid. Prepaid net additions of 363,000 compared to net losses of 1 million in the prior year, an improvement of nearly 1.4 million driven by a resurgence in the Boost brand. Prepaid churn of 4.58 percent, the lowest in three years, improved by 80 basis points year-over-year. For the fourth quarter, prepaid net additions were 170,000, including the highest share of gross additions in two years and year-over-year improvement in churn for the seventh consecutive quarter.

Cost Reduction Program Contributes to Improved Cash Flows

Sprint continued to make progress on its multi-year plan to improve its cost structure. Excluding approximately $100 million of hurricane-related and other non-recurring charges in fiscal year 2017, the company reported approximately $1.1 billion of combined year-over-year reductions in cost of services and selling, general and administrative expenses, making it the fourth consecutive year of more than $1 billion of year-over-year reductions and bringing the total reduction over the last four years to approximately $6 billion. The year-over-year reductions were primarily driven by changes to the device insurance program, as well as lower network expenses.

Fiscal year 2017 net cash provided by operating activities of $10.1 billion improved by $13.4 billion year-over-year, primarily due to a modification of our accounts receivable facility in February 2017. Adjusted free cash flow* of $945 million improved by $338 million year-over-year, mostly due to operational improvements in the business.

Net income of $7.4 billion in fiscal year 2017 included a one-time $7.1 billion non-cash benefit from tax reform, resulting from a re-measurement of our deferred tax assets and liabilities under provisions contained in the new tax law.

The company also reported the following financial results:

(Millions, except per share data) Fiscal

4Q17 Fiscal

4Q16 Change Fiscal

2017 Fiscal

2016 Change Net income (loss) $69 ($283) $352 $7,389 ($1,206) $8,595 Basic income (loss) per share $0.02 ($0.07) $0.09 $1.85 ($0.30) $2.15 Operating income $236 $470 ($234) $2,727 $1,764 $963 Adjusted EBITDA* $2,768 $2,680 $88 $11,069 $9,934 $1,135 Net cash provided by (used in) operating activities $2,653 ($523) $3,176 $10,062 ($3,290) $13,352 Adjusted free cash flow* ($240) $80 ($320) $945 $607 $338

Network Quality Improves as Progress Toward First Mobile 5G Network Continues

Sprint is building a super-reliable, high-capacity mobile network that will deliver a great LTE experience and enable industry-leading 5G capabilities. The company’s Next-Gen Network plan involves:

Upgrading existing towers to leverage all three of the company’s spectrum bands

Building new macro cell sites

Adding more small cells including mini-macros, strand mounts with cable operators and Sprint Magic Boxes

Deploying 5G technologies such as Massive MIMO

With more than 160 MHz of 2.5 GHz spectrum in the top 100 markets, Sprint is one of the only operators in the world with enough capacity to operate LTE and 5G simultaneously using Massive MIMO and huge channels of 100-200 MHz of licensed spectrum on the same radios. Sprint expects to launch the first mobile 5G network in the U.S. in the first half of 2019.

Sprint completed thousands of tri-band upgrades on macro sites, added thousands of outdoor small cells and deployed more than 200,000 Sprint Magic Boxes in fiscal year 2017. These deployments helped drive continued improvement in network quality, as seen in Ookla’s Speedtest Intelligence data.

Sprint saw a 36 percent year-over-year increase in its national average download speed, the largest increase of the top four national carriers. 1

Sprint is #1 for fastest average download speed in 100 cities, more than twice as many cities as last year and more than AT&T for the third consecutive quarter.2

Fiscal Year 2018 Outlook

The company expects adjusted EBITDA* of $11.3 billion to $11.8 billion . Including the impact of the new revenue recognition accounting standard, adjusted EBITDA* is expected to increase to a range of $11.6 billion to $12.1 billion .

to . Including the impact of the new revenue recognition accounting standard, adjusted EBITDA* is expected to increase to a range of to . The company expects cash capital expenditures excluding leased devices to be $5 billion to $6 billion .

Conference Call and Webcast

Date/Time: 4:30 p.m. (ET) Wednesday , May 2, 2018

, May 2, 2018 Call-in Information U.S./ Canada : 866-360-1063 (ID: 4588039) International: 443-961-0242 (ID: 4588039)

Webcast available at www.sprint.com/investors

Additional information about results is available on our Investor Relations website

1 Based on Ookla’s analysis of Speedtest Intelligence data comparing March 2017 to March 2018 for all mobile results.

2 Based on Ookla’s analysis of Speedtest Intelligence data from 1/1/18 to 3/31/18 for all mobile results when comparing cities where the top four national carriers rank

Wireless Operating Statistics (Unaudited) Quarter To Date Year To Date 3/31/18 12/31/17 3/31/17 3/31/18 3/31/17 Net additions (losses) (in thousands) Postpaid(a) 39 256 (118) 424 811 Postpaid phone (a) 55 184 42 606 930 Prepaid(b) 170 63 195 363 (1,020) Wholesale and affiliate(b) (165) 66 291 81 2,342 Total wireless net additions 44 385 368 868 2,133 End of period connections (in thousands) Postpaid(a) (c) (d) 32,119 31,942 31,576 32,119 31,576 Postpaid phone(a) (c) 26,813 26,616 26,079 26,813 26,079 Prepaid(a) (b) (c) (e) (f) (g) 8,989 8,997 8,688 8,989 8,688 Wholesale and affiliate (b) (c) (f) 13,517 13,642 13,375 13,517 13,375 Total end of period connections 54,625 54,581 53,639 54,625 53,639 Churn Postpaid 1.78% 1.80% 1.75% 1.74% 1.62% Postpaid phone 1.68% 1.71% 1.58% 1.62% 1.48% Prepaid (f) 4.30% 4.63% 4.69% 4.58% 5.38% Supplemental data – connected devices End of period connections (in thousands) Retail postpaid 2,335 2,259 2,001 2,335 2,001 Wholesale and affiliate 11,162 11,272 10,880 11,162 10,880 Total 13,497 13,531 12,881 13,497 12,881 ARPU(h) Postpaid $ 44.40 $ 45.13 $ 47.34 $ 45.70 $ 49.77 Postpaid phone $ 50.44 $ 51.26 $ 54.10 $ 51.98 $ 57.09 Prepaid(f) $ 37.15 $ 37.46 $ 38.48 $ 37.67 $ 34.46 NON-GAAP RECONCILIATION – ABPA* AND ABPU* (Unaudited) (Millions, except accounts, connections, ABPA*, and ABPU*) Quarter To Date Year To Date 3/31/18 12/31/17 3/31/17 3/31/18 3/31/17 ABPA* Postpaid service revenue $ 4,270 $ 4,297 $ 4,493 $ 17,396 $ 18,677 Add: Installment plan and non-operating lease billings 368 379 343 1,512 1,172 Add: Equipment rentals 1,136 1,047 842 4,048 3,295 Total for postpaid connections $ 5,774 $ 5,723 $ 5,678 $ 22,956 $ 23,144 Average postpaid accounts (in thousands) 11,259 11,193 11,405 11,260 11,378 Postpaid ABPA*(i) $ 171.38 $ 170.39 $ 165.92 $ 169.99 $ 169.51 Quarter To Date Year To Date 3/31/18 12/31/17 3/31/17 3/31/18 3/31/17 Postpaid phone ABPU* Postpaid phone service revenue $ 4,048 $ 4,069 $ 4,228 $ 16,463 $ 17,578 Add: Installment plan and non-operating lease billings 324 335 309 1,349 1,061 Add: Equipment rentals 1,126 1,037 829 4,003 3,240 Total for postpaid phone connections $ 5,498 $ 5,441 $ 5,366 $ 21,815 $ 21,879 Postpaid average phone connections (in thousands) 26,754 26,461 26,053 26,394 25,659 Postpaid phone ABPU* (j) $ 68.51 $ 68.54 $ 68.66 $ 68.88 $ 71.06