May 3, 2018 / 8:27 PM / 2 years ago

UPDATE 1-GoPro reports smaller-than-expected loss on lower costs

(Compares with estimates, adds share movement)

May 3 (Reuters) - Action-camera maker GoPro Inc reported a smaller-than-expected first-quarter loss on Thursday as the company cut costs and sold more of its new entry-level cameras.

Shares of the company rose 2.4 percent to $5.08 in extended trading as the company’s quarterly revenue also beat Wall Street expectations.

Total operating expenses fell to $119.7 million from $156.8 million.

The company - which exited its Karma drone business to stem losses- has been trying to attract users with its $199.99 entry-level HERO camera that was announced in March.

The company in April also announced huge discounts and trade-up programs for its premium products.

Demand for GoPro’s cameras have been waning as users move to cheaper options and smartphones with powerful cameras.

The company’s net loss narrowed to $76.3 million, or 55 cents per share, in the quarter ended March 31, from $111.2 million, or 78 cents per share, a year earlier.

Excluding items, the company lost 34 cents per share, compared with the average analyst estimate of a loss of 37 cents per share, according to Thomson Reuters I/B/E/S.

GoPro — whose cameras are used by surfers, skydivers and other action junkies — said revenue fell to $202.35 million from $218.61 million. Analysts had expected revenue of $184.2 million.

Reporting by Pushkala Aripaka and Anirban Paul in Bengaluru; Editing by Arun Koyyur

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