T-Mobile raised its annual forecast for postpaid net customer additions on Wednesday and added more wireless subscribers than expected in the second quarter, signaling steady demand for the telecom giant’s top-tier mobile services.
Its shares shot up 5 per cent in extended trading.
The carrier now expects to add between 6.1 million and 6.4 million subscribers in 2025, compared with its prior projection of 5.5 million to 6 million additions.
T-Mobile’s postpaid Experience plans, launched in April, have resonated well with customers. These plans bundle streaming services such as Netflix and Apple TV+ and come with a five-year price guarantee.
“About 60 per cent of the new accounts that join us are taking the Experience More and Experience Beyond plan,” Jon Freier, president of T-Mobile’s Consumer Group, told Reuters.
The plans also include the carrier’s satellite service T-Satellite that was made available to its own users and those of rivals Verizon and AT&T earlier on Wednesday.
The carrier’s aggressive promotions and add-on perks have helped it maintain an edge over rivals and increase market share. T-Mobile added 830,000 postpaid phone customers in the second quarter, surpassing FactSet estimates of 700,300 additions.
It also reached a deal to sell its entire portfolio of 800 megahertz licenses to private investment firm Grain Management for $2.9 billion in cash and all of Grain’s 600 MHz spectrum licenses.
The Bellevue, Washington-based company plans to close its $4.4 billion acquisition of regional wireless carrier United States Cellular on August 1, CEO Mike Sievert said on a post-earnings call, after the U.S. Federal Communications Commission approved it earlier in July.
T-Mobile, the last among the big three U.S. telecom carriers to report results, posted second-quarter total revenue of $21.13 billion, beating analysts’ estimates of $21.02 billion, according to data compiled by LSEG.
AT&T beat quarterly profit estimates on Wednesday and added more wireless subscribers than expected, while Verizon raised the lower end of its annual profit forecast on Monday.
