U.S. telco reports 5.5% increase in fiscal third quarter revenue.
Sprint this week reported a narrower fiscal third quarter net loss, as strong customer additions drove a 5.5% increase in revenue.
The U.S. telco added 577,000 customers in the three months to 31 December 2016, compared to 491,000 in the corresponding quarter a year ago. Postpaid net adds came in at 405,000, while wholesale affiliate subscriptions grew by 673,000. This more than offset a 501,000 decline in prepaid customers.
Sprint ended 2016 with 59.52 million mobile customers in total, up from 58.36 million a year ago.
"Sprint is turning the corner," declared Sprint CEO Marcelo Claure, in a statement on Tuesday.
Indeed, revenue jumped 5.5% year-on-year to $8.55 billion (€7.92 billion), as growth in equipment revenue offset falling service revenues.
Operating expenses fell to $8.24 billion from $8.30 billion, helping Sprint swing to an operating profit of $311 million from a year-earlier loss of $197 million. EBITDA surged to $2.40 billion from $1.67 billion.
The improvement in revenue and costs helped Sprint to narrow its quarterly net loss to $479 million from $836 million a year ago.
The encouraging performance led Sprint to tweak its guidance for full-year 2016.
It now expects adjusted EBITDA to come in at $9.7 billion-$10 billion; its previous expectation was $9.5 billion-$10 billion. Sprint also raised its operating income guidance to $1.4 billion-$1.7 billion from $1.2 billion-$1.7 billion.
"The company remains on track to achieve its goal of a sustainable reduction of $2 billion or more of run-rate operating expenses exiting fiscal year 2016 and has plans for further reductions in fiscal year 2017 and beyond," the company added.