Investing.com - Sprint (N:S), the fourth-largest U.S. wireless carrier, reported quarterly revenue well below estimates as more customers shift to monthly leasing plans from traditional two-year contracts.
The company, in the middle of a turnaround plan, also said it expected fiscal 2015 adjusted earnings at the lower end of its previously forecast range of 7.2 to 7.6 billion dollars.
The shift to monthly leasing plans has resulted in increased cash burn as Sprint needs to pay upfront for mobile devices but gets paid only monthly by subscribers.
Sprint said on Sunday it would cut additional jobs and costs as part of its plan to slash fiscal 2016 expenses by as much as two-and-a-half billion dollars.
The company is locked in a price war with rivals Verizon (N:VZ), AT&T (N:T) and T-Mobile US (O:TMUS) , which are going after each others' subscribers with promotions that have hit profits in the industry.