T-Mobile US Inc. posted another surge in subscriber additions for the third quarter while reporting a mixed set of financial results Tuesday.
Shares
TMUS,
were up 1.9% in after-hours trading.
The company generated third-quarter net income of $691 million, or 55 cents a share, down from $1.25 billion, or $1.00 a share, in the year-prior quarter. Analysts tracked by FactSet were expecting 50 cents in GAAP EPS.
T-Mobile saw revenue increase to $19.6 billion from $19.3 billion a year prior, while analysts tracked by FactSet were projecting $20.2 billion. The top line included $14.7 billion in service revenue, up from $14.4 billion a year earlier and in line with the FactSet consensus.
The company recorded 1.3 million postpaid net additions, including 673 million postpaid phone net additions.
“With our Magenta business firing on all cylinders and our Sprint integration ahead of schedule, we are well positioned for the future — and poised to continue winning with assets and a formula for growth that is differentiated from the other wireless players,” Chief Executive Mike Sievert said in an earnings release.
The company upped its expectations for merger synergies related to its deal for Sprint and now anticipates $3.2 billion to $3.5 billion in synergies encompassing various expense reductions and “avoided costs from new site builds.” The prior expectation was for $2.9 billion to $3.2 billion in merger synergies.
For the full year, T-Mobile projects postpaid net customer additions of 5.1 million to 5.3 million, a narrowing from its previous range, which called for 5.0 million to 5.3 million net additions.
T-Mobile’s results follow those from Verizon Communications Inc.
VZ,
and AT&T Inc.
T,
both of which saw subscriber gains as well in the third quarter.
Shares of T-Mobile have declined 14% so far this year as the S&P 500
SPX,
has risen 23%.
This post was originally published on Market Watch
