- T-Mobile revenues up 78% to US$19.76 billion in Q1 of 2021, boosted by its merger with Sprint.
- The stocks jumped 2.7% to nearly US$132 per share in after-hours trade following the results.
- The phone company added 773,000 subscribers in the quarter, compared to 452,000 subscribers in the same period a year earlier.
American telecommunications services provider T-Mobile US, Inc. (NASDAQ:TMUS) on Tuesday, May 4, posted revenue growth of 78% to US$19.76 billion in the first quarter ended March 31, 2021, boosted by its merger with Sprint.
The stocks jumped 2.7% to nearly US$132 per share in after-hours trade following the results. The stock had fallen 2.3% in the regular session.
The results, which beat the market expectations, come a year after it closed the merger with Sprint.
However, its adjusted earnings in the first quarter fell by 33% to 74 cents per share, compared to the year-ago period. According to the company, the profits were pulled down by an increase in the outstanding shares related to the Sprint merger.
Pic Credit: Pixabay.
T-Mobile Subscribers Soar
T-Mobile, controlled by German-headquartered Deutsche Telekom, said that its post-paid wireless phone subscribers rose by leaps and bounds during the period.
The phone company added 773,000 subscribers in the quarter, compared to 452,000 subscribers in the same period a year earlier. Analysts had estimated less than 500,000 subscriber addition.
Its total number of customers rose to a record-high of 103.4 million, while its addition of 773,000 customers in Q1 was an industry-best performance. In the prepaid segment, T-Mobile added 151,000 customers in Q1, its highest in three years.
T-Mobile’s EBITDA earnings increased by 2% to US$6.9 billion in Q1, compared to the figures in the fourth quarter ended December 31, 2020. Analysts attributed T-Mobile’s revenue growth in Q1 to its merger with Sprint. Also, its 5G wireless spectrum has outperformed its rivals like Verizon and AT&T.
The T-Mobile stock has climbed nearly 7% in the past six months.
According to the company, its focus on better services and best value for its products have stood out among its customers that helped generate more subscribers and money.