Sprint Corp. (NYSE: S), the fourth-largest U.S. wireless carrier, reported quarterly revenue well below estimates as more customers shift to monthly leasing plans from traditional two-year contracts.
The company, in the middle of a turnaround plan, also said it expected fiscal 2015 adjusted EBITDA at the lower end of its previously forecast range of $7.2 billion-$7.6 billion U.S.
The shift to monthly leasing plans has resulted in increased cash burn as Sprint needs to pay upfront for mobile devices but gets paid only monthly by subscribers.
Sprint said on Sunday it would cut jobs and control costs as part of its plan to slash fiscal 2016 expenses by as much as $2.5 billion U.S.
Sprint, majority-owned by Japan's SoftBank Corp, said net operating revenue fell 6% to $7.98 billion U.S. in the second quarter ended Sept. 30 from $8.49 billion U.S. a year earlier.
Analysts on average had expected revenue of $8.14 billion U.S., according to Thomson Reuters I/B/E/S.
Sprint said it added a net 1.1 million customers in the quarter.
The company's net loss narrowed to $585 million U.S., or 15 cents per share, in the second quarter ended Sept. 30, from $765 million U.S., or 19 cents per share, a year earlier.
Sprint shares opened Tuesday down 32 cents, or 6.6%, from Monday's close at $4.53 U.S., within a 52-week trading range of $3.10 U.S. to $6.25 U.S.
