Sprint’s Quarterly Profit Jumps 9.9%

Sprint Corp., which is being acquired by MCI WorldCom Inc., said its fourth-quarter profit rose a better-than-forecast 9.9% as revenue growth from its phone operations more than offset spending to build a high-speed data network. Profit from continuing operations rose to $431 million, or 49 cents a share, from $392 million, or 45 cents, a year ago, on an 8% rise in revenue to $4.41 billion. Sprint had been expected to earn 38 cents, according to the average estimate of 13 analysts surveyed by First Call/Thomson Financial. Long-distance revenue rose 7.5% as Sprint’s price cuts encouraged consumers to boost calling volume, or minutes of use, by 20%. Sales of data services to businesses jumped 40%, though the company’s high-speed voice and data network, known as ION, reported wider losses as Sprint spent more to keep up with soaring demand for Internet access. At Sprint PCS, the wireless unit that trades as a tracking stock, revenue more than doubled to $996 million, but the unit’s loss widened to $706 million, or 75 cents a share, from $616 million, or 72 cents, for the year-earlier period. Sprint PCS reports its results separately from its parent. On the New York Stock Exchange, Sprint shares closed off $1.25 at $63.38, and Sprint PCS shares closed up $1.75 at $111.81.