T-Mobile beats quarterly phone subscriber estimates

This post was originally published on this site

© Reuters. A T-Mobile shop is pictured in San Ysidro© Reuters. A T-Mobile shop is pictured in San Ysidro

(Reuters) – T-Mobile US Inc (O:) on Monday beat analysts’ third-quarter estimates for net new phone subscribers who pay a monthly bill, boosted by competitive wireless plans aimed at fending off its bigger rivals.

The third-largest U.S. wireless carrier by subscribers said it added 754,000 phone subscribers on a net basis in the three months ended Sept. 30, compared with 774,000 additions a year earlier.

Analysts had expected 742,600 new subscribers, according to research firm FactSet.

Investors pay close attention to postpaid customers, or those with a recurring bill, because they are more valuable to carriers and tend to remain with the company longer than prepaid users.

T-Mobile faces a state attorneys general lawsuit, led by New York and California, as it works to buy Sprint Corp (N:) and achieve more scale to compete with larger operators such as Verizon Communications Inc (N:) and AT&T Inc (N:).

While T-Mobile and Sprint have been locked in a lengthy merger process, Verizon and AT&T beat Wall Street estimates for net new phone subscribers.

Bellevue, Washington-based T-Mobile said it expects pre-close merger-related costs to be $125 million to $150 million before taxes in the fourth quarter.

The company said it now expected adjusted core earning target for 2019 of $13.1 to $13.3 billion, up at the midpoint from prior guidance of $12.9 to $13.3 billion.

T-Mobile’s third-quarter net income rose to $870 million, or $1.01 per share, from $795 million, or 93 cents per share, a year earlier. Analysts had expected earnings of $1.01 per share, according to IBES data from Refinitiv.

Revenue rose 2% to $11.06 billion, missing estimates of $11.33 billion.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Add Comment