T-Mobile has reported a better-than-expected 10.6 percent rise in quarterly revenue and raised its forecast for customer additions in 2016 as heavy discounts helped the No.3 U.S. wireless carrier by subscribers attract more business.
T-Mobile, controlled by Deutsche Telekom, said it added 2.2 million customers on a net basis in the first quarter ended March 31.
That easily topped the average analyst estimate of 1.72 million, according to research firm FactSet StreetAccount.
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The company said it expected to add 3.2 million to 3.6 million postpaid customers on a net basis in 2016, compared with its previous forecast of 2.4 million to 3.4 million.
T-Mobile’s 10.6 percent jump in quarterly revenue to $8.6 billion suggested its strategy to boost revenue was working. Analysts on average had expected revenue of $8.43 billion, according to Thomson Reuters I/B/E/S.
In comparison, market leader Verizon’s operating revenue rose just 0.6 percent to $32.17 billion.
AT&T is scheduled to report results later today.
T-Mobile reported net income of $479 million, or 56 cents per share, for the first quarter, compared with a loss of $63 million, or 9 cents per share, a year earlier.