T-Mobile beats Wall Street views as it gains new customers

News

BELLEVUE, Wash. (AP) — T-Mobile, the country’s No. 3 wireless carrier, on Wednesday said it continued to add new customers during the second quarter in a competitive wireless market.

The company won new customers even as rivals AT&T and Verizon are now also selling unlimited data plans, which many consumers prefer to plans that cap how much they can use. Sprint also offered a big promotion — a year’s worth of free service for switching.

Most Americans already have a smartphone, so carriers are competing for them with discounts and promotions.

T-Mobile said it added 786,000 cellphone customers that pay a bill every month, the more lucrative kind of customer, up from the 646,000 it gained in the second quarter of 2016. Prepaid customers shrank to 94,000 from 476,000, however. A metric that tracks how many customers drop T-Mobile for another carrier fell.

The carrier raised its 2017 outlook for several financial metrics and reported that second-quarter net income more than doubled, to $581 million, or 67 cents per share. The average estimate of 17 analysts surveyed by Zacks Investment Research was for earnings of 36 cents per share.

The Bellevue, Washington-based company’s revenue rose 10 percent to $10.15 billion in the period, or an adjusted $10.21 billion. Seventeen analysts surveyed by Zacks expected $9.85 billion.

T-Mobile US Inc. shares rose 2.9 percent to $63.79 in aftermarket trading. They closed Wednesday at $61.97, up 40 percent in the last 12 months.

_____

Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on TMUS at https://www.zacks.com/ap/TMUS

_____

Keywords: T-Mobile, Earnings Report

Copyright 2020 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Download the KSN News App and stay up-to-date wherever you are. You can even watch KSN News live for free!
Click here to get the app
Get it in the App store
Get it in the Google Play store

3 Day Forecast

KSN Storm Track 3 Weather

Trending Stories