T-Mobile lifts subscriber addition target on demand for premium bundled plans
Adds executive comment in paragraph 6, details from release in paragraph 13
By Harshita Mary Varghese
July 31 (Reuters) -T-Mobile US TMUS.O raised its full-year forecast for monthly bill-paying phone subscriber additions, after seeing more customers than expected in the second quarter on strong demand for its discounted unlimited plans that include streaming perks.
Shares of the company rose3.6% at middayon Wednesday.
American wireless carriers have been bundling streaming services with high-speed internet plans in recent months to attract customers in the competitive industry.
T-Mobile said its Go5G Next and Go5G Plus plans offer access to Netflix NFLX.O and Apple TV+ AAPL.O, as well as premium data options have resonated well with customers.
"We're seeing fabulous uptake, but also have a lot of continued room to run on that plan itself," T-Mobile Chief Financial Officer Peter Osvaldik told Reuters.
Roughly 30% of T-Mobile's postpaid subscriber base has opted for the Go5G Next and Go5G Plus plans, Osvaldik said.
The company now expects to add between 5.4 million and 5.7 million subscribers in 2024, compared with its previous forecast of 5.2 million to 5.6 million.
It raised prices for several of its legacy phone plans in May, citing rising costs. The move is expected to push customers to higher-end 5G plans and help the company reach its forecast.
"We made changes (to pricing) this year to keep up with the times, which is a first in a decade for the company," CEO Mike Sievert said.
T-Mobile added 777,000 postpaid phone customers in the second quarter, its highest ever for the period and beatingFactSet estimates of 642,600 additions.
The growth was also higher than the 148,000 monthly bill-paying wireless phone subscribers Verizon VZ.Nadded in the quarter,while AT&T T.N posted 419,000 additions.
T-Mobile now expects annual adjustedfree cash flow to be between $16.6 billion and $17.0 billion, an increase from its prior forecast of $16.4 billion to $16.9 billion.
Its quarterly revenue of $19.77 billion and profit of $2.49 per share beat LSEG estimates.
Reporting by Harshita Mary Varghese in Bengaluru; Editing by Shounak Dasgupta and Maju Samuel
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
