Leap posts wider loss as subscriber additions fall

(Reuters) - Leap Wireless (LEAP.O) posted a wider second-quarter loss as it added fewer customers than expected, sending its shares down as much as 5 percent in extended trading.

Leap, which caters to cost conscious customers who don't want to sign a contract, said it added 29,000 customers in the quarter compared with the average expectation for 38,000 from seven analysts contacted by Reuters.

The company's loss widened to $65.2 million, or 85 cents per share, from $18.2 million, or 24 cents per share, in the year-ago quarter. Revenue rose to $760.5 million from $667.3 million.

Leap shares have lost 20 percent of their value in the last two days as bigger rival MetroPCS Communications Inc (PCS.N) reported weaker-than-expected results and outlook citing economic pressures on its customers.

The company's shares, which closed at $10.04 on Wednesday on Nasdaq, were trading down 5 percent at $9.51 after-market.

(Reporting by Sinead Carew in New York and Himank Sharma in Bangalore; Editing by Roshni Menon)