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T-Mobile adds 1.5 million customers; revenue beats views

Published 31/07/2014, 13:17
T-Mobile adds 1.5 million customers; revenue beats views

By Marina Lopes

July 31 (Reuters) - T-Mobile US Inc TMUS.N added 1.5 million net customers in the second quarter, the fifth consecutive quarter the company has topped 1 million subscriber additions, as it continues an aggressive discount campaign that has shaken up prices in the industry.

The No. 4 U.S. mobile operator's quarterly revenue rose 15.4 percent to $7.2 billion (4.26 billion pounds), beating estimates of $7 billion. The company benefited from higher equipment sales and the popularity of a series of promotions aimed at luring subscribers away from its biggest rivals, Verizon Communications Inc VZ.N and AT&T Inc T.N.

T-Mobile shares were up 4.4 percent at $32.20 in premarket trading.

The company said it now expected to add between 3 million and 3.5 million postpaid customers in 2014, up from a prior outlook of 2.8 million to 3.3 million.

T-Mobile, which is 67 percent owned by Deutsche Telekom DTEGn.DE, said it had earned $391 million, or 48 cents per share, in the second quarter, compared with a year-earlier loss of $16 million, or 2 cents per share.

© Reuters. Photo illustration of mobile phone displaying T-mobile banking service app on a tablet screen with same icon

Postpaid average revenue per user decreased by 2.2 percent to $49.32, as more customers opted for lower-priced plans.

(Reporting by Supantha Mukherjee in Bangalore and Marina Lopes in New York; Editing by Savio D'Souza and Lisa Von Ahn)

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