T-Mobile Rises After Beating Estimates and Boosting Forecast
(Bloomberg) -- T-Mobile US Inc. topped earnings estimates and raised its forecast for the year, maintaining its momentum as the fastest-growing U.S. wireless carrier even as Covid-19 crimped store sales.
- The company boosted its second-half earnings outlook to $13.6 billion to $13.7 billion, excluding some items, up from as much as $12.7 billion. Profit and sales both exceeded projections last quarter, and the carrier crossed the milestone of 100 million customers.
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- The company cited faster-than-expected cost savings from its Sprint Corp. merger, which was completed earlier this year. T-Mobile will double its previous forecast for $600 million in Sprint merger synergies and now expects $1.2 billion in cost and revenue benefits this year. The deal helped vault the company into the No. 2 spot in the U.S. wireless industry, behind Verizon Communications Inc. and ahead of AT&T Inc.
- T-Mobile surpassed its 1.9 million net new regular subscriber forecast in the third quarter and now expects to add between 600,000 to 700,000 new regular phone customers in the fourth quarter.
- T-Mobile has long relied on aggressive promotions to maintain growth, and it plans to step up its latest round of discounts. Starting Friday, T-Mobile will add Apple Inc.’s iPhone Max and Mini to a giveaway offer. Customers who sign on to a new unlimited 5G plan are eligible for one of four free iPhones being released this year. AT&T and Verizon are also offering free iPhones as the carriers battle for new subscribers entering the busy holiday sales season.
- Earlier this week, T-Mobile launched a slimmed-down TV service aimed at cord-cutters. The online service starts at $10 a month, and enters a crowded field, competing with Sling TV from Dish Network Corp., AT&T TV and Google’s YouTube TV.
- T-Mobile shares rose much as 5.7% to $124 in late trading Thursday after the results were released. The stock is up 50% for the year, compared with a 5.3% decline at Verizon and a 30% drop at AT&T.
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