T-Mobile Revenue Jumps 10.6%

T-Mobile US reported a better-than-expected 10.6 percent rise in quarterly revenue and raised its forecast for customer additions in 2016 as heavy discounts helped the No.3 U.S. wireless carrier by subscribers attract more business.

T-Mobile has been offering cheaper leasing plans and free music and video streaming to lure customers away from larger rivals Verizon Communications and AT&T.

T-Mobile, controlled by Deutsche Telekom, said it added 2.2 million customers on a net basis in the first quarter ended March 31.

That easily topped the average analyst estimate of 1.72 million, according to research firm FactSet StreetAccount.

The company said it expected to add 3.2 million to 3.6 million postpaid customers on a net basis in 2016, compared with its previous forecast of 2.4 million to 3.4 million.

T-Mobile's 10.6 percent jump in quarterly revenue to $8.6 billion suggested its strategy to boost revenue was working. Analysts on average had expected revenue of $8.43 billion, according to Thomson Reuters I/B/E/S.

In comparison, market leader Verizon's operating revenue rose just 0.6 percent to $32.17 billion.

AT&T is scheduled to report results later on Tuesday.

T-Mobile reported net income of $479 million, or 56 cents per share, for the first quarter, compared with a loss of $63 million, or 9 cents per share, a year earlier.

(Reporting by Sai Sachin R in Bengaluru; Editing by Saumyadeb Chakrabarty and Anil D'Silva)