Sprint Revenue Falls as It Forecasts Jump for the Year
Sprint, the No.4 U.S. wireless carrier, forecast a jump in full-year operating income as it continues to slash costs to offset the heavy discounts it had offered to attract customers.
The company’s shares were up 6% at $3.70 in premarket trading Tuesday.
Sprint, majority-owned by Japan’s SoftBank Group, said it expected operating income for the year ending March 2017 to be $1 billion to $1.5 billion, a big rise from the $310 million in operating income it posted for the year ended March 31.
The Overland Park, Kan.-based company added 447,000 subscribers in the fourth quarter ended March 31, trailing the average analyst estimate of 518,100, according to research firm FactSet StreetAccount.
Get Data Sheet, Fortune’s technology newsletter.
Sprint (S) has been offering deep discounts to win customers from larger rivals Verizon Communications (VZ), AT&T (T), and T-Mobile (TMUS).
It has also been reining in costs, recently shuttering call centers and slashing jobs to save about $2 billion to $2.5 billion.
The company also stuck to its forecast of about $9.5 billion to $10 billion in adjusted earnings before interest, taxes, depreciation, and amortization for the year ending March 2017.
The company’s net operating revenue fell 2.5% to $8.07 billion in the fourth quarter from $8.28 billion a year earlier.
Sprint‘s net loss widened to $554 million, or 14 cents per share, from $224 million, or 6 cents per share.
Analysts on average had expected a loss of 12 cents and revenue of $8.06 billion, according to Thomson Reuters I/B/E/S.