T-Mobile beats estimates for wireless subscriber additions, fueled by demand for premium plans
Adds executive comment in paragraphs 4-5, background in paragraph 9 and analyst comment in paragraph 9
By Juby Babu
Oct 23 (Reuters) -T-Mobile US TMUS.O on Wednesday exceeded expectationsfor quarterly wireless subscriber additions as more customers chose its discounted plans that bundle streaming services like Netflix, sending its shares up 2% in after-hours trading.
The company's strong performance in customer growth is largely driven by its high-speed 5G plans, which are often more affordable compared to those offered by AT&T and Verizon.
T-Mobile, one of the top three telecom carriers in the U.S., has seen increased adoption of its premium plans like Go5G Next and Go5G Plus, which include streaming services.
Over 60% of new customers coming into T-Mobile are opting for one of the premium plans, Mike Katz, president of marketing, strategy and products, told Reuters.
"When our existing customers decide to change rate plans, those are the plans that they change to the most frequently."
The company added 865,000postpaid phone customers in the third quarter, its highest for the period in a decade, surpassing FactSet estimates of 727,500 additions.
T-Mobile now expects postpaid net customer additions between 5.6 million and 5.8 million for the year, up from a prior outlook of 5.4 million to 5.7 million.
Rivals AT&T T.N gained more wireless subscribers than expected in the third quarter, while Verizon VZ.N projected 2025 capital spending above market estimates as the U.S. telecom giant builds out its high-speed internet business.
In any telecom earnings report, there are probably ten different metrics worth paying attention to and T-Mobile beat on every one, said MoffettNathanson analyst Craig Moffett. "Their best-network-lowest-prices strategy is working."
Free cash flow, a metric closely watched by investors to help determine dividend payouts, came in at $5.2 billion in the third quarter, a record high for T-Mobile, above the $4.65 billion estimated by Visible Alpha.
The company posted revenue of$20.16 billion for the quarter, beating estimates of $20.01 billion, according to LSEG data.
Reporting by Juby Babu in Mexico City; Editing by Tasim Zahid
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Javobgarlikdan voz kechish: XM Group korxonalari har biri faqat ijro xizmatlarini koʻrsatadi va onlayn savdo platformamizdan foydalanish huquqini beradi, bu odamga veb-saytda yoki veb-sayt orqali mavjud boʻlgan kontentni koʻrish va/yoki undan foydalanishga ruxsat beradi hamda uni oʻzgartirishga moʻljallanmagan va uni oʻzgartirmaydi yoki kengaytirmaydi. Bunday kirish va foydalanish huquqi doimo quyidagilarga boʻysunadi: (i) Shartlar va qoidalar; (ii) Risklar haqida ogohlantirish; va (iii) Javobgarlikni toʻliq rad etish. Shuning uchun bunday kontent umumiy maʼlumot sifatida taqdim etiladi. Xususan, shuni esda tutingki, bizning onlayn savdo platformamiz mazmuni moliyaviy bozorlarda biror bitimni amalga oshirishga oid maslahat yoki taklif emas. Har qanday moliyaviy bozorda savdo qilish sizning kapitalingiz uchun jiddiy risk darajasini oʻz ichiga oladi.
Onlayn savdo platformamizda chop etilgan barcha materiallar faqat taʼlim/axborot maqsadlari uchun moʻljallangan va unda moliyaviy, investitsiya soligʻi yoki savdo maslahatlari va tavsiyalar; yoki bizning savdo narxlarimizning qaydlari; yoki har qanday moliyaviy vositalar bilan bitim tuzish maslahati yoki taklifi; yoki sizga kerak boʻlmagan moliyaviy reklama aksiyalari hisoblanmaydi
Har qanday uchinchi tomon kontenti, shuningdek XM tomonidan tayyorlangan kontent, masalan: fikrlar, yangiliklar, tadqiqotlar, tahlillar, narxlar va boshqa maʼlumotlar yoki bu veb-saytda joylashgan uchinchi tomon saytlariga havolalar umumiy bozor sharhi sifatida "boricha" taqdim etiladi va investitsiya maslahatini tashkil etmaydi. Har qanday kontent investitsiya tadqiqoti sifatida talqin qilinsa, siz bunday kontentni investitsiya tadqiqotlarining mustaqilligini ragʻbatlantirish uchun moʻljallangan qonun talablariga muvofiq moʻljallanmagan va tayyorlanmaganligini eʼtiborga olishingiz va qabul qilishingiz kerak, shuning uchun unga tegishli qonunlar va qoidalarga muvofiq marketing kommunikatsiyasi sifatida qaraladi. Mustaqil boʻlmagan investitsiya tadqiqoti va yuqoridagi maʼlumotlarga oid risk haqida ogohlantirishimizni oʻqib chiqqaningizga va tushunganingizga ishonch hosil qiling, unga bu yerdan kirish mumkin.
