Albeit adding around 1.1 million subscribers for the first time in last few years, the forth largest operator in the US, Sprint posted a net loss of $585 million in the second quarter of this year, narrowing from $765 million in the year-ago period. The company reported a net operating revenue of $8 billion.
In the quarter, Sprint recorded a net addition of 1.1 million customers compared to 590,000 in the prior year quarter – an improvement of 466,000 year-over-year. Postpaid net additions of 553,000 compared to net losses of 272,000 in the prior year quarter mark an improvement of 825,000 year-over-year.
During the past year, Sprint has focused on attracting and retaining more postpaid phone customers by providing an improved customer experience and a compelling value proposition, including the launch of the iPhone Forever program, which allows customers to always be eligible to upgrade to the latest iPhone.
To turn the company towards profitability, Sprint plans to cut about $2.5bn in its annual operating cost budget by cutting jobs and other expenses over the next few months.
Sprint CEO Marcelo Claure
This quarter marked an inflection point in our turnaround journey, as we achieved positive postpaid phone net additions for the first time in over two years. In addition, we set another record low for postpaid churn and improved sequentially in the September quarter, something no US carrier has ever done before.
