GO
Loading...

UPDATE 1-T-Mobile US revenue rises, subscriber growth beats Street

Tuesday, 5 Nov 2013 | 7:49 AM ET

(Adds net loss, revenue figures, market background, share price update)

Nov 5 (Reuters) - T-Mobile US Inc, the No. 4 U.S. mobile provider, on Tuesday reported subscriber growth that handily beat Wall Street expectations and raised its growth target for the full year, in a sign that its recent strategy changes are working.

The company, which is 74 percent owned by Deutsche Telekom AG, saw its shares rise 2.3 percent to $29 in light pre-market trade after the news.

T-Mobile US said it added 648,000 net subscribers in the quarter compared with the average expectation for 444,000 subscribers from seven analysts contacted by Reuters.

While its biggest rival Verizon Wireless reported much faster subscriber growth of 927,000, T-Mobile blew past customer additions at No. 2 U.S. mobile provider AT&T Inc, which added 363,000 subscribers, and Sprint Corp, which lost 360,000 in the quarter.

Excluding devices such as tablet computer connections, T-Mobile US also beat Verizon Wireless customer growth. Verizon Wireless is a joint venture of Verizon Communications Inc and Vodafone Group Plc.

T-Mobile has been fighting hard this year to return to growth by selling itself as a more consumer-friendly alternative to the more established U.S. operators.

After two quarters of beating expectations, it was able to increase its customer growth target for 2013 to a range of 1.6 million to 1.8 million from its previous target range of 1 million to 1.2 million.

It reported a net loss that narrowed to $36 million in the third quarter compared with a loss of $7.74 billion in the year-ago quarter. The company said its increase in total revenue to $6.69 billion from $4.26 billion was primarily due to its merger earlier this year with smaller rival MetroPCS.

(Reporting by Sinead Carew; Editing by Gerald E. McCormick)

  Price   Change %Change
TMUS
---