TMUS: T-Mobile Adding New Customers Like a Boss

It beat the top two U.S. carriers combined

   

TMUS: T-Mobile Adding New Customers Like a Boss

On Thursday, T-Mobile (TMUS) reported a quarterly loss, but also a huge increase in subscribers. Investors liked the news, sending TMUS shares up more than 9% in morning trading.

T Mobile storefront 630 300x225 TMUS: T Mobile Adding New Customers Like a Boss
Source: Flickr

TMUS stock rose after the nation’s fourth-largest wireless carrier said it attracted 1.3 million new monthly subscribers during the first quarter. That exceeded the 1.16 million new subscribers added by the top two U.S. carriers — Verizon (VZ) and AT&T (T) — together, and also beat Wall Street’s estimate of 998,000 new TMUS subscribers, Bloomberg noted.

T mobile logo e1300715922855 200x139 TMUS: T Mobile Adding New Customers Like a Boss
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The quarterly subscriber jump led TMUS to increase its forecast for new subscribers to between 2.8 million and 3.3 million for this year, up from earlier estimates of between 2 million and 3 million new TMUS subscribers. By contrast, Sprint (S), which has announced its intention to merge with T-Mobile, reported a decline in subscribers during the quarter.

Attracting new subscribers through cheaper wireless plans and promotions took a toll on TMUS earnings. T-Mobile posted a loss of $151 million during the first quarter, compared to a profit of $107 million in the prior-year period. It’s margin on wireless services fell to 20%, down from 29% in the year-ago period. EBITDA during the quarter dropped 26% year-over-year to $1.06 billion.

TMUS now estimates full-year EBITDA to range between $5.6 billion and $5.8 billion, down from earlier estimates that suggested a high of $6 billion.

T-Mobile stock closed at $29.29 per share on Wednesday.

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Article printed from InvestorPlace Media, http://investorplace.com/2014/05/tmus-t-mobile-adding-new-customers-like-boss/.

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