A T-Mobile store sign is seen in the Brooklyn borough of New York June 4, 2015.  REUTERS/Brendan McDermid  - RTX1F4ZJ

A T-Mobile store sign is seen in the Brooklyn borough of New York June 4, 2015. REUTERS/Brendan McDermid - RTX1F4ZJ (Reuters)

T-Mobile Sees 17.8% Jump in Quarterly Revenue

Industries Reuters

T-Mobile US reported a better-than-expected quarterly profit and raised its forecast for customer additions for full-year as heavy discounting helped attract subscribers.

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Shares of the company, controlled by Deutsche Telekom , were up 4.9 percent at $49.05 in premarket trading on Monday.

The company said it now expected to add 3.7 million to 3.9 million branded postpaid customers on a net basis this year, compared with its previous forecast of 3.4 million to 3.8 million.

The Bellevue, Washington-based company added 969,000 postpaid customers in the third-quarter ended Sept. 30, up from 890,000 in the second quarter.

T-Mobile said it benefited from the launch of the iPhone 7 in the quarter and an increase in branded prepaid customer migrations to postpaid plans.

However, T-Mobile said the rate at which users switch to other networks, or churn, increased to 1.32 percent from the prior quarter's 1.27 percent.

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On an adjusted basis, the company earned 27 cents per share, according to a Thomson Reuters I/B/E/S calculation, beating the average analyst estimate of 22 cents per share.

T-Mobile's net income rose to $366 million, or 42 cents per share, in the third quarter from $138 million, or 15 cents per share, a year earlier.

Net income in the quarter included after-tax spectrum gains of $122 million.

Total revenue rose 17.8 percent to $9.2 billion.

Up to Friday's close, the stock had risen nearly 20 percent this year.

 

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila)