logo-loader

Sprint reports larger-than-expected Q2 loss, surprise revenue drop

Published: 09:43 03 Nov 2015 EST

iphone-(Resize)
Sprint added 1.1mln, compared with 590,000 a year ago.

Sprint (NYSE:S) tumbled in premarket trade after the fourth-largest U.S. wireless carrier reported a wider-than-anticipated loss in its fiscal second quarter, and an unexpected drop in sales.

Shares fell as much as 9.4% to $4.41 at 9:31 a.m. in New York.

Net loss expanded to $585mln, or $0.15 per share, in the three months ended September 30, compared with a loss of $20mln, or $0.01 per share, a year earlier, the Overland Park, Kansas-based company said in a statement.

The FactSet per-share loss consensus was $0.07.

Second-quarter revenue slid to $7.98bn from $8.03bn, as more customers shift to monthly leasing plans from traditional two-year contracts. The FactSet consensus was for an increase to $8.12bn.

The shift to monthly leasing plans has led to increased cash burn as Sprint needs to pay upfront for mobile devices but gets paid only monthly by subscribers.

The company added 1.1mln, compared with 590,000 a year ago.

The company said it now expects fiscal 2015 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to be at the low end of its previous outlook of $7.2bn to $7.6bn.

Sprint said it expects further cost reductions in fiscal 2016.

ARway.ai announces multiple new SaaS developer contracts in both the United...

ARway.ai (CSE:ARWY, OTCQB:ARWYF) Chief Executive Officer Evan Gappelberg joined Steve Darling from Proactive to announce multiple new SaaS developer sign-ups for its augmented reality experience platform, focusing on AR indoor navigation. These partnerships represent significant milestones in...

53 minutes ago