Snacks, apparently: quote:Mr. Claure, who took over as CEO in August 2014, started buying snacks earlier this year for employees at the company’s Overland Park, Kan., headquarters. Thats more than twice the average 7-cent loss projected by analysts, according to estimates compiled by Bloomberg.
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The results highlight the challengesChief Executive Officer Marcelo Claure faces in trying to revive growth for the fourth-largest US wireless provider. More than a year after being hired by majority owner SoftBank Group Corp., Claure has focused on network improvements, half-price offers and tablet promotions to lure customers. Sprint has also launched its “iPhone Forever” program, which allows customers to always be eligible to upgrade to the latest iPhone. “Subscriber trends improved; but they weren’t great”, New Street Research analysts Jonathan Chaplin said in a brief research note. Claure said the company remained “incredibly disciplined” in how it sets its prices, but noted a three percent increase in average billing per account and a two percent increase in average billing per user.
Sprint posted record low postpaid churn and 1.1 million total net additions during its quarterly earnings report on Tuesday, almost doubling its net add total year over year.
The company burned through $100 million in cash for the quarter, compared to burning through $75 million in the year-ago quarter and $2.2 billion in the second quarter. Sprints cash and equivalents fell about $328 million to $1.97 billion. Adjusted EBITDA grew by 45 percent in a year to Dollars 2 billion in the quarter, as cost cuts more than offset the falling service revenue.
Though Claure said he understands a few are skeptical the company can continue to grow while simultaneously optimizing its business expenses, he said he is confident the carrier can execute both tasks at the same time. “Unfortunately we were hopeful for more answers regarding leasing company”, Wells Fargo analyst Jennifer Fritzsche said in a research note. Next we attack the costs, and we are looking at every line item.
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Wireless carrier Sprint Corp S.N. said on Sunday it aims to slash fiscal 2016 expenses by as much as $2.5 billion, through layoffs and a wide array of cost controls, as an essential part of its ongoing turnaround efforts.
