T-Mobile U.S. added more subscribers than expected in the first quarter as promotional offers helped the No. 3 wireless carrier win over customers despite rival unlimited data plans, the company said on Monday.
T-Mobile has been gaining share from larger competitors AT&T and Verizon Communications in a saturated U.S. wireless market through network improvements and lower prices.
In February, Verizon offered an unlimited data plan for the first time in over five years, at $80 a month for a single line. In response, AT&T opened up its unlimited plan to all of its wireless customers, and T-Mobile said it would offer a new promotion of two unlimited lines for $100 a month.
T-Mobile’s net income rose to $698 million, or 80 cents per share, in the quarter ended March 31, from $479 million, or 56 cents per share, a year earlier.
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Excluding items, earnings per share was 48 cents, according to Thomson Reuters calculations.
Total adjusted revenue rose nearly 11% to $9.61 billion.
Analysts on average were expecting earnings of 35 cents per share on revenue of $9.67 billion, according to Thomson Reuters I/B/E/S.
T-Mobile shares (TMUS) rose 1.1% after closing up 1.9% at $65.93, before falling to $65.75.
T-Mobile said it added 914,000 branded postpaid subscribers, who pay bills monthly, on a net basis, during the period. Analysts on average had expected net additions of 847,000, according to market research firm FactSet StreetAccount.
Churn, or customer defections, was 1.18%, compared with the average analyst estimate of 1.27% according to FactSet.
“We’re seeing record lows here,” T-Mobile Chief Executive John Legere said on the company’s post-earnings conference call.
The company also raised its 2017 forecast for branded postpaid net additions to a range of 2.8 million to 3.5 million, from 2.4 million to 3.4 million previously.
