T-Mobile beats estimates on higher phone subscriber additions
FILE PHOTO: A T-Mobile logo is seen on the storefront door of a store in Manhattan, New York, U.S., April 30, 2018. REUTERS/Shannon Stapleton
(Reuters) – T-Mobile US Inc beat Wall Street’s first-quarter estimates for revenue and profit on Thursday, as it added more than expected net new phone subscribers who pay a monthly bill due to its competitively-priced wireless plans.
Shares of the Bellevue, Washington-based operator rose about 1 percent to $73.45 after hours.
T-Mobile, the third-largest U.S. wireless carrier by subscriber count, is awaiting approval of its deal to buy smaller rival Sprint Corp as it strives for more scale to compete with bigger rivals Verizon Communications Inc and AT&T Inc.
The company said it added a net 656,000 phone subscribers in the first quarter, compared with 617,000 additions a year earlier.
Analysts were expecting 612,000 new subscribers, according to research firm FactSet.
The company’s net income rose to $908 million, or $1.06 per share, in the three months ended March 31, from $671 million, or 78 cents per share, a year earlier.
Analysts had expected the company to earn 91 cents per share, according to IBES data from Refinitiv.
Revenue rose nearly 6 percent to $11.08 billion, slightly ahead of estimates of $11 billion.
Reporting by Akanksha Rana in Bengaluru and Sheila Dang in New York; Editing by Sriraj Kalluvila