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T-Mobile US swings to profit

Tuesday, April 26, 2016 - 00:57

The wireless carrier keeps pulling in new customers through heavy discounting, but it managed to turn a profit. Fred Katayama reports.

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The "un-carrier" is no longer unprofitable in its first quarter. T-Mobile US swung to a profit from a loss last year. And it did so as it kept pulling in new subscribers. T-Mobile US added more than two million customers in the latest quarter. That's the sixth time it has topped that level that in the last seven quarters. T-Mobile making money even though it's heavily discounting, offering cheaper leasing plans, and free streaming for music and video. Aggressive promotions under CEO John Legere have helped turn around years of subscriber losses. Revenue jumped more than ten percent. Wells Fargo senior analyst Jennifer Fritzsche said, "A solid quarter from T-Mobile US, particularly on the customer growth side." T-Mobile shares, which are up twenty percent over the last 12 months, fell in early trading. The company expects the momentum to continue. It raised its full-year forecast for profitability and customer growth.

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T-Mobile US swings to profit

Tuesday, April 26, 2016 - 00:57