📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

T-Mobile raises forecast for subscriber additions on strength from bundled plans

Published 04/25/2024, 04:15 PM
Updated 04/25/2024, 06:37 PM
© Reuters. FILE PHOTO: A T-Mobile logo is advertised on a building sign in Los Angeles, California, U.S., May 11, 2017. REUTERS/Mike Blake
TMUS
-

By Harshita Mary Varghese

(Reuters) -T-Mobile US raised its annual forecast for growth in monthly bill-paying phone subscribers on Thursday, as more people take to its plans that bundle high-speed internet with access to streaming services.

The U.S. telecom carrier's offerings such as Go5G Next and Go5G Plus provide subscriptions for services such as Netflix (NASDAQ:NFLX) and Apple (NASDAQ:AAPL) TV+ and are among its most popular offerings.

"Over 60% of our new customers that come in are choosing those plans," Mike Katz, president of marketing, strategy and products, told Reuters.

"They are also the plans that are the most popular when existing customers are moving from their current rate plan to a new plan."

T-Mobile now expects to add 5.2 million to 5.6 million subscribers in 2024 compared with its previous forecast of 5 million to 5.5 million subscriber additions.

In a competitive market, T-Mobile's discounted plans have helped it attract customers looking for flexible offerings and made it a top pick of analysts as it gains shares from underpenetrated markets segments like rural and business.

The company added 532,000 monthly bill-paying phone subscribers in the first quarter, the highest among peers, compared with FactSet estimates of 477,500 additions.

"People are now starting to be more cost conscious and T-Mobile's disruptive punchy offers are resonating with home cable customers," said PP Foresight analyst Paolo Pescatore.

T-Mobile recorded its lowest ever first-quarter churn rate, which refers to the percentage of customers who stopped using the company's services, at 0.86%.

Revenue stood at $19.59 billion, slightly below analysts' estimates of $19.81 billion, according to LSEG data.

Its profit of $2 per share was also above estimates of $1.87.

© Reuters. FILE PHOTO: A T-Mobile logo is advertised on a building sign in Los Angeles, California, U.S., May 11, 2017. REUTERS/Mike Blake

Separately, the company said it expects to invest about $950 million for a 50% stake in a venture with Swedish investment firm EQT (ST:EQTAB)'s fund that will buy fiber optic network provider Lumos.

The U.S. Federal Communications Commission on Thursday also gave a greenlight to T-Mobile's deal to buy Ka'ena Corp, the owner of budget service provider Mint Mobile.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.