Sprint under pressure despite cost cutting, retail growth; T-Mobile merger will enable Sprint to resolve its financial challenges

Despite cutting $1.1 billion in operating expenses over the past year, Sprint’s consolidated operating margin fell 260 basis points to 2.9 percent in 1Q18. Sprint’s wireline business was a significant drag on its consolidated margins, reporting negative operating income of $107 million as the segment lacks the scale to compete against larger wireline rivals such as AT&T, Verizon and CenturyLink. — Steve Vachon, Analyst

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