Sprint Adds 173,000 Subscribers But Loss Widens
Shares, which have increased 22% during the last three months, gained another 5.7% in Monday premarket trading.
The wireless carrier based in the U.S. and owned by Japan-based SoftBank, added 173,000 net postpaid subscribers, which is the most profitable kind of subscribers, for its fourth straight quarter that it finished on the plus side.
Total new net additions for the period reached 377,000.
The technology conglomerate in Japan bought controlling interest of Spring back in 2013 for the price of $22 billion in a goal of shaking up the business as well as stealing customers. That plan however has faced its share of obstacles.
CEO Marcelo Claure said Sprint experience another quarter that included solid progress in its turnaround. He cited the company’s highest net additions for postpaid phone service for the first quarter in the past nine years, the lowest churn of postpaid phone subscribers in the history of the company and finally reaching a status of postpaid net port positive versus all three of the national carriers following five years since the last time.
Claure added that the company grew its net operating wireless revenue compared to the same quarter last year, while also aggressively lowering cash operating expenses for the business and the network is reached a performance level that was never attained before.
During October, Sprint said it would prepare to cut up to $2.5 billion worth of costs over the following six months because the struggling wireless provider increased its cost cutting.
On Monday, Sprint said it lowered its costs by over $550 million compared to the same time last year during this most recent quarter and was on track to eliminate $2 billion of its run rate expense by the end of the current fiscal year.
In all, during the three-month period that ended on June 30, Sprint posted a total loss of just over $302 million equal to 8 cents per share, which was wider than last year during the same period of $20 million equal to 1 cent per share.
Revenue moved lower by just 0.2% to end the quarter at $8.01 billion. Analysts forecast an 8-cent loss with revenue reaching $7.98 billion.
Sprint’s churn rate for postpaid for its latest quarter, which measures cancellations was flat from the same period one year ago at 1.56%