Revenue rose 15 percent as T-Mobile US, the fourth largest U.S. carrier, gained subscribers. The strong results should make it more attractive to Softbank’s Sprint. Fred Katayama reports.
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The so-called "Un-carrier" is no longer unprofitable. T-Mobile US climbed out of the red in the latest quarter. And the fourth-largest U.S. carrier boosted its revenue 15 percent, driven by its in-your-face promotions aimed at nabbing subscribers from its two dominant rivals, Verizon and AT&T, and the inclusion of results from the carrier it bought, MetroPCS.
T-Mobile added 1.5 million subscribers in the quarter. And it boosted its forecast for subscriber gains for the full year. What's more, few subscribers ditched its service, giving it a flat churn rate.
Barclays analyst Amir Rozwadowski said, "The company's churn metrics also continue to outperform even in light of a strike back from the incumbents."
T-Mobile US' stock zoomed higher in early trading, paring back its nearly 9 percent loss this year.
The strong results should make T-Mobile even more attractive to Softbank, which has long been interested in merging it with its carrier, Sprint. Sources say don't expect any deal before September, as the companies prepare their case before regulators.
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