Harshita Mary Varghese
(Reuters) – T-Mobile US on Thursday raised its full-year growth forecast for monthly billing subscribers as more people support its plans that combine high-speed Internet with access to streaming services.
The US carrier’s offerings like Go5G Next and Go5G Plus provide subscriptions to services like Netflix (NASDAQ:) and Apple (NASDAQ:) TV+ and are among its most popular offerings.
“More than 60% of our new customers choose these plans,” Mike Katz, president of marketing, strategy and products, told Reuters.
“These are also the plans that are most popular when existing customers switch from their current plan to a new one.”
T-Mobile now expects to add 5.2 million to 5.6 million subscribers in 2024, up from its previous forecast of 5 million to 5.5 million new subscribers.
In a competitive market, T-Mobile’s discounted data plans have helped the company attract customers seeking flexible offerings and made it a favorite among analysts as it gains share in underserved market segments such as rural and business.
The company added 532,000 monthly paying phone subscribers in the first quarter, the highest among peers, compared with FactSet estimates of 477,500 new subscribers.
“People are now becoming more cost-conscious, and T-Mobile’s revolutionary offerings are resonating with home cable customers,” said PP Foresight analyst Paolo Pescatore.
T-Mobile recorded its lowest ever churn rate, which refers to the percentage of customers who stop using a company’s services, at 0.86%.
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Revenue was $19.59 billion, slightly below analysts’ estimates of $19.81 billion, LSEG said.
Its earnings of $2 per share also came in above the $1.87 estimate.
The company also said it plans to invest about $950 million to acquire a 50% stake in a joint venture with Swedish investment firm EQT (ST:) to buy fiber optic network provider Lumos.
The Federal Communications Commission on Thursday also gave the green light to T-Mobile’s deal to buy Ka’ena Corp, owner of budget service provider Mint Mobile.