Sprint is hemorrhaging both money and customers as it searches for a way to stop the financial bleeding. The company lost $505 million in the first quarter alone, and watched helplessly as over a million of its customers defected to other wireless carriers.

“As expected, our wireless business delivered weak financial results,” Sprint Chief Executive Officer Dan Hesse said. “While the business will continue to face challenges in the short term, we are making progress in methodically attacking the sources of our performance issues.”

The Kansas City Business Journal says that of the 1.09 million departing customers, 1.07 of them were traditional “post-paid” accounts and 543,000 were prepaid users.

Ouch.

Sprint claims to be revamping its notoriously broken customer service, but is it too little too late?

Sprint Nextel loses $505M on lower revenue [Bizjournals]
(Photo: meghannmarco )