Tags: sprint | earnings | jobs | customers

Sprint Loses More Customers Than Estimated, Will Cut 2,000 Jobs

Monday, 03 November 2014 04:57 PM

Sprint Corp. lost more customers than analysts projected as new Chief Executive Officer Marcelo Claure began to counter rivals’ escalating price cuts.

As the company continues to lose money and subscribers, Sprint said it will cut about 2,000 more jobs. The third-largest U.S. wireless carrier’s monthly subscribers fell by 272,000, compared with the loss of 203,000 expected by analysts on average, according to nine estimates compiled by Bloomberg. Sprint had lost customers in the prior 10 quarters, as well.

The efforts to lure subscribers with promotions and price reductions have taken a toll on industry profits, and Sprint reported a net loss of $765 million in the quarter that ended Sept. 30.

The continued subscriber losses highlight the challenge facing Sprint at a time when Verizon Communications Inc., AT&T Inc. and T-Mobile US Inc. are all gaining customers. Claure was named CEO in August — halfway through the quarter — after parent company SoftBank Corp.’s failed attempt to merge Sprint with T-Mobile. Claure has since set out to reduce expenses and offer competitive plan prices.

“Most wireless carriers are like supertankers: It takes a while to turn them around,” Roger Entner, an analyst with Recon Analytics LLC in Dedham, Massachusetts, said before the earnings release. “With a new captain on board, there might be more urgency than before.”

In his first weeks on the job, Claure introduced a shared data plan with 20 gigabytes for $100 a month, twice the data offered by T-Mobile for the same price.

Revenue rose 9.5 percent to $8.49 billion in the fiscal second quarter, the Overland Park, Kansas-based company said today in a statement. Analysts estimated $8.66 billion on average.

The company also missed estimates for adjusted earnings before interest, taxes, depreciation and amortization, reporting $1.39 billion versus estimates for $1.66 billion.

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Sprint Corp. lost more customers than analysts projected as new Chief Executive Officer Marcelo Claure began to counter rivals' escalating price cuts.As the company continues to lose money and subscribers, Sprint said it will cut about 2,000 more jobs. The third-largest...
sprint, earnings, jobs, customers
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2014-57-03
Monday, 03 November 2014 04:57 PM
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