T-Mobile adds wireless subscribers as it awaits Sprint deal approval 

Earnings


T-Mobile US on Wednesday said it added far more wireless subscribers than Wall Street had expected, as the third-largest U.S. wireless carrier invests in its network while awaiting regulatory approval to buy rival Sprint.

T-Mobile Chief Executive John Legere said in an interview he felt confident regulators will approve the current merger structure without having to divest parts of the business.

The combined T-Mobile and Sprint would be able to better compete against larger rivals Verizon Communications and AT&T, and combine resources to build the next-generation wireless network, or 5G.

Legere, in a call to discuss quarterly results with analysts, said the merger is critical to 5G plans and for increasing industry competition, adding that the pending deal “has been very well received.”

The Bellevue, Washington-based company said it added 686,000 wireless subscribers during the second quarter, compared with 786,000 added in the previous year. Analysts had expected T-Mobile to add 467,000 subscribers, according to research firm FactSet.

Shares of T-Mobile rose 1.5 percent to $60.25 in extended trading on Wednesday.

T-Mobile’s revenue rose to $10.57 billion from $10.2 billion a year earlier, shy of Wall Street’s estimate of $10.66 billion, according to Thomson Reuters I/B/E/S.

Chief Financial Officer Braxton Carter said capital expenditures for the year would be at the high end of its $4.9 billion to $5.3 billion forecast range, as the company works to install its spectrum for 5G.

Net income for the quarter rose 35 percent to $782 million, or 92 cents per share, from $581 million, or 67 cents per share, a year ago.

Phone subscriber churn, or the rate of customer defections, was 0.95 percent during the quarter, down from 1.1 percent last year.

The company’s average revenue per phone subscriber was $46.52 in the second quarter, down 1.2 percent from the year-ago quarter, due to customers moving to tax inclusive plans.

T-Mobile said on Monday that Finland’s Nokia would supply it with network equipment for 5G in a $3.5 billion deal, the world’s largest 5G deal so far.



Source link

Products You May Like

Articles You May Like

Cramer’s charts suggest shares of IBM are ‘ready to roar higher’
USPS fees to cost Amazon more than $1 billion in 2019 credit suisse
Uber raises $2 billion in debut junk bond sale ahead of IPO
Textron profit misses on lower aircraft sales 
Acadia stock up after report of talks with private equity firms

Leave a Reply

Your email address will not be published. Required fields are marked *