T-Mobile posts better-than-expected results
T-Mobile's aggressive pricing has emphatically punched a hole in rivals Verizon and AT&T, which have little choice but to fight fire with fire to retain existing customers and attract new ones.
In a tightly-competitive market like the U. S., telecommunication services providers have to slash their prices even if their margins and ARPUs have to take a hit. T-Mobile's newest stats and guidance indicate that it continues to inflict pain on rivals.
T-Mobile added 2.1 million subscriptions during the fourth quarter, including 541,000 branded prepaid and 933,000 branded postpaid phone net additions. For the whole of 2016, the company added 8.2 million net subscribers.
The company's service revenue increased 11 per cent on annual basis to hit $7.2 billion in the final quarter of last year.
Total revenue, including device sales, jumped 10 per cent to $10.2 billion, surpassing consensus analyst estimate of $9.9 billion. EPS jumped from $0.34 in the fourth quarter of 2015 to $0.45 in the same quarter of 2016.
For the current year, T-Mobile expects to add 2.4 to 3.4 million branded postpaid net additions. The company had offered a similar guidance for last year, but wound up garnering 4.1 million net additions.
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