(Reuters) - Wireless carrier T-Mobile US Inc (O:TMUS), which is buying smaller rival Sprint Corp (N:S), topped Wall Street estimates for revenue as it added more postpaid phone subscribers with competitively priced plans.
Shares of the company rose 2 percent in after-market trading on Tuesday.
T-Mobile added 617,000 branded postpaid phone subscribers in the quarter, leading to an overall 1 million total branded postpaid net additions.
A deal between T-Mobile and Sprint will help T-Mobile boost its financials by creating a company with 127 million customers, making it a more formidable competitor to the top two wireless players, Verizon Communications Inc (N:VZ) and AT&T Inc (N:T).
The company's revenue rose to $10.46 billion (£7.68 billion) from $9.61 billion, beating the analysts' average estimate of $10.35 billion, according Thomson Reuters I/B/E/S.
The company's net income fell $671 million, or 78 cents a share, in the quarter ended March 31, from $698 million, or 80 cents a share, a year earlier.