iPhone Adds To Sprint’s Losses

Sprint Nextel posted a bigger loss, reflecting the higher costs of offering Apple Inc’s iPhone. But the loss was smaller than expected because its signed up fewer new customers than expected.

Since Sprint subsidizes the cost of some of its phone sales, its costs rise and profit dwindles the more customers it wins. But since subscriptions fell short of expectations, its loss was smaller than expected.

Sprint’s loss was 35 cents per share excluding unusual items compared with Wall Street expectations for a loss of 37 cents per share, according to Thomson Reuters.

Its profit margin based on operating earnings before interest, depreciation and amortization (OIBDA) fell to 9.5 percent from 16 percent a year earlier but beat expectations for 8.6 percent, according to eight analyst estimates Reuters compiled.

“It’s still unbelievably depressed and subscribers were below expectations,” said Roe Equity Research analyst Kevin Roe who also noted that Sprint’s targets for the full year were not particularly impressive.

The margin decline was hurt by the hefty cost of selling the iPhone.

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AOL Launches Professional Division

AOL Inc is launching a professional division called AOL Industry on Monday geared towards capturing the  government, energy and defense executives attention.

The idea is to bring the use of social media, video and design from consumer-oriented sites and apply it to media for business professionals.

“(Trade media) hasn’t done as good a job at innovating as consumer media,” said Jay Kirsch, vice president and general manager of AOL Industry, who pitched the idea to AOL at the end of last summer.

“If you look at most of the innovations that have really changed media most of them have been consumer facing and not business-to-business.”

AOL Energy rolled out first and will be followed by AOL Government and AOL Defense in June. AOL Industry is not charging a subscription for access and will not have a print component.

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