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Sprint Stock Plummets by 16% As Subscriber Defections Continue

US wireless carrier Sprint has posted huge losses for the second quarter as it struggles with intense competition and continues to lose subscribers.

The company reported a second quarter loss of $847 million or 28 cents a share, a rise from $760 million, or 25 cents it posted during the previous year.

Analysts had expected the operating income before depreciation to be at $1.48 billion but Sprint reported it to be $1.31 billion, a drop of 12 percent from last year.

The company also continued to lose subscribers despite spending $120 million last quarter on customer acquisition and retention costs. Sprint reported losing 101,000 customers on monthly contracts in the second quarter. The company had lost 114,000 subscribers during the last quarter.

The increase in losses and the loss of customers forced investors to send Sprint’s share down by 16 percent or 82 cents to $4.34, its biggest single day drop since December 1, 2008, Bloomberg reports.

“This was a very unusual quarter in terms of the level of competitive activity, but we emerged from the quarter very strong, with June being by far the best net subscriber month of the year so far,” Sprint Chief Executive Officer Dan Hesse said.

“We’re entering the third quarter with some momentum, and that’s why we reaffirmed all of our guidance for the year,” he added.