(Reuters) – T-Mobile US Inc said on Thursday it added more monthly bill-paying phone subscribers than expected in the second quarter, as more people used its services to stay connected and work remotely during coronavirus lockdowns.
A T-Mobile store is pictured in the Brooklyn borough of in New York City, U.S., December 3, 2019. REUTERS/Brendan McDermid
The U.S. wireless carrier’s shares rose more than 7% in extended trading.
Its net income, however, dropped sharply due to costs associated with its merger with Sprint Corp, previously the fourth-largest phone provider, which closed in April.
T-Mobile said it has overtaken rival AT&T as the second-largest wireless provider in the United States across postpaid, in which customers pay a recurring monthly bill, and prepaid phones – customers paying for service in advance.
T-Mobile reported 98.3 million customers in those categories, while AT&T had nearly 93 million postpaid and prepaid subscribers in its second quarter.
T-Mobile has sought to attract budget-constrained customers with its cheaper phone plans after the pandemic left millions of people in the United States unemployed.
It added 253,000 net new phone subscribers who pay a monthly bill, compared with 710,000 additions a year earlier.
Analysts had expected 169,200 new subscribers, according to research firm FactSet.
T-Mobile’s second-quarter net income fell to $110 million, or 9 cents per share, from $939 million, or $1.09 per share, a year earlier.
Revenue jumped 61% to $17.67 billion, above analysts’ estimates of $17.61 billion, according to IBES data from Refinitiv.