T-Mobile surpasses analysts’ estimates, adds 1 million users

Bloomberg

T-Mobile US Inc. reported profit that exceeded analysts’ estimates as the third-largest U.S. wireless carrier posted a seventh straight quarter of adding more than 1 million new monthly users with features like free video streaming and mobile data rollover.
First-quarter earnings were 56 cents a share, the Bellevue, Washington-based company said in a statement Tuesday. Adjusted earnings before interest, taxes, depreciation and amortization almost doubled to $2.7 billion, topping the $2.1 billion average of estimates compiled by Bloomberg. Sales of $8.6 billion compared with the $8.43 billion average
estimate.
Surprisingly strong profit and subscriber gains adds further proof that Chief Executive Officer John Legere’s strategy is working by luring subscribers from rivals by focusing on social-media marketing and free video-streaming promotions like Binge On without hurting the bottom line in a price war.
First-quarter net income was $479 million. Analysts predicted $97.5 million on average. Adjusted Ebitda margin expanded to 32 percent from 24 percent a year earlier. Six analysts surveyed by Bloomberg projected 32.74 percent on average.
The company raised its forecast for new subscribers this year to 3.2 million to 3.6 million, from a February prediction of 2.4 million to 3.4 million.
Full-year adjusted Ebitda will be $9.7 billion to $10.2 billion, T-Mobile said. Previously the company had projected Ebitda on that basis of $9.1 billion to $9.7 billion.