T-Mobile beats estimates for telephone subscribers

FILE PHOTO: A T-Mobile store is pictured in the borough of Manhattan in New York city, New York, New York, united states of america, May 20, 2019. REUTERS/Carlo Allegri

(Reuters) – T-Mobile US Inc (TMUS.O) on Thursday beat analysts ‘ estimates for the second quarter of net new phone subscribers who pay a monthly bill, will strengthen the U.S. wireless provider, competitive wireless plans to focus on the defenses of its major rivals.

The third-largest U.S. mobile service provider said it added a net 710,000 phone subscribers in the three months ended June 30, compared with 686,000 the additions to the previous year.

Analysts had expected 643,000 subscribers, according to research firm FactSet.

Contract figures will be closely watched, as the customers who are planning to pay a recurring monthly bill, and are more valuable to service providers who are prepaid users.

T-Mobile US, in anticipation of the approval of the $26.5 billion deal to buy smaller rival Sprint Corp (S. N), because it has more scale to compete with larger rivals such as Verizon Communications, Inc. (CH.And AT&T Inc (T. N).

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The net profit rose to $939 million, or $1.09 per diluted share, in the fourth quarter, from $ 782 million, or 92 cents a share, a year earlier.

Analysts had expected the company to earn 97 cents per share, according to IBES data, Refinitiv.

Revenue rose 4% to $10.98 billion, falling short of estimates of $11.13 billion.

Reporting Vibhuti Sharma in Bengaluru; Editing by Sriraj Kalluvila and Anil D’silva

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