T-Mobile Adds Mobile, Broadband Subscribers Raises Guidance

(MENAFN- Live Mint) (Bloomberg) -- T-Mobile US Inc. reported more monthly mobile-phone and broadband subscribers that analysts expected, leading it to raise forecasts for new customers and earnings this year.

The Bellevue, Washington-based carrier reported a net 865,000 additional monthly phone subscribers, the company said in a statement Wednesday. Analysts had expected 732,900, according to data compiled by Bloomberg. T-Mobile added more new subscribers than either AT&T Inc. or Verizon Communications Inc. Revenue rose 4.7% to $20.16 billion, just ahead of analysts' estimates of $20 billion.

The three major carriers are all focused on what industry executives call converged connectivity, or giving customers high speed internet at home or on the go in addition to wireless phone packages and streaming options including Netflix or AppleTV . Their efforts are pulling broadband customers from cable operators with their wireless home offerings.

T-Mobile has the largest 5G network and has been adding more rural territories to its coverage area and selling fixed wireless access in places where fiber internet is limited. In July, T-Mobile said it's investing $4.9 billion in a joint venture with private equity firm KKR & Co. to buy the fiber-optic internet service provider Metronet. In the third quarter, T-Mobile added 415,000 new broadband subscribers, beating analysts' forecasts of 401,000.

Based on the strength of the third quarter, the company raised its guidance for metrics across the board for the full year. It now expects net customer additions of 5.6 million to 5.8 million, up from an earlier forecast of as much as 5.7 million. Core adjusted earnings before interest, tax, depreciation and amortization are now seen at $31.6 billion and $31.8 billion.

In September Chief Executive Officer Mike Sievert raised the company's target for earnings before interest, taxes, depreciation and amortization to as much as $39 billion by 2027. Service revenue is expected to increase at a compound annual growth rate of about 5% from 2023 to 2027, to as much as $76 billion. That will boost annualized Ebitda by about $10 billion over that time frame, he said.

Earnings per share were $2.61 in the third quarter, compared with analysts' average forecast of $2.43.

T-Mobile shares have gained almost 40% this year through the close on Wednesday.

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