T-Mobile stock traded 4.5% higher in Wednesday’s premarket as the wireless carrier attracted more 5G-seeking customers to take its third-quarter earnings ahead of estimates.
The company raised its annual forecast and said the Sprint merger is saving it more money than it first estimated. The company now expects Sprint merger synergies to be $3.35 billion at the midpoint of its guidance range, some $300 million more than first thought.
Postpaid revenue, comprising 55% of the total, rose about 6% on the year to $10.80 billion as more subscribers joined its network for high-speed 5G services.
T-Mobile closed the quarter with a record-high customer count of 106.9 million, with third-quarter net additions at 1.3 million, its 15th straight quarter of adding users. This included 673,000 new phone customers.
The U.S.’s second-largest telephony provider expects postpaid net customer additions to be at least 5.1 million this year, up from its previous guidance of 5 million.
Adjusted profit per share of 55 cents was ahead of estimates of 48 cents in the third quarter even though sales of $19.62 billion lagged forecasts.
During the quarter, T-Mobile added 586,000 users of tablets and hot spots, and said home internet additions set a record. The company launched a $60 a month service in April beaming fast internet into homes. It has now cut the cost of that to $50 a month.
Core adjusted EBITDA for the full year is seen at around $23.45 billion, an increase from prior guidance of $23.15 billion at the middle of its range.
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