T-Mobile on Tuesday posted its financial and customer metrics that have crossed the Wall Street’s expectation and delivered another record-breaking quarter. During the third-quarter, the company signed up more customers to its flagship brand, outpacing the biggest rivals with trade-in offers for iPhone and competitive wireless plans. The shares of T-Mobile climb over 3% to $66.00 in after-hours trading on Tuesday.
Despite its pursuit to close the pending merger with smaller rival Sprint, T-Mobile continues to accelerate its business beyond expectations and strives for more scale to compete with larger telecommunication companies such as Verizon and AT&T, Reuters reported. On a conference call with analysts, CEO John Legere said that T-Mobile is expecting to close its deal with Sprint in the first half of 2019. So far, the company has received approval from few of the state commissions that are reviewing the deal, he added.
In the third quarter last year, T-Mobile had added about net 595,000 phone subscribers who paid the monthly bill while the number has increased to 774,000 new subscribers during the same quarter this year. According to research firm FactSet, the results jumped ahead of analyst expectations for 628,000 net new subscribers. As reported in Reuters, T-Mobile’s new wireless plans targeting specific users including those over the age of 55 and people in military helped the company get new customer segments.
The United States’ third-largest wireless carrier is now expecting to add 3.8 million to 4.1 million net new postpaid users for the full year, up from its earlier expectations of 3 to 3.6 million. NewStreet Research Analyst Jonathan Chaplin said that the results are very strong. Although the company is earning traction in new geographies and new market segments, they have a long way to run, he added.
In revenue, T-Mobile exceeded from analysts’ estimates of $10.72 billion and jumped from $10.02 billion to $10.84 billion, according to Refinitiv data. While the analysts were expecting T-Mobile to report a profit of 85 cents per share in the third quarter, it reported profit of 93 cents per share, up from previous year’s 63 cents per share. This year, the company’s net income rose to $795 million from $550 million, a year earlier.
Last week, T-Mobile’s largest peer Verizon added a net 295,000 phone subscribers during the third quarter, beyond analysts’ estimates of 161,000 new subscribers, while AT&T earned a net 69,000 phone subscribers, beating estimates of 22,000.