BENGALURU: T-Mobile US Inc missed fourth-quarter revenue estimates on Wednesday despite adding nearly 1 million wireless subscribers, as competitors ramped up their holiday season handset offers to lure customers.
The US wireless carrier has been adding thousands of wireless subscribers lately, thanks to discounts on smartphones, industry-low plan prices and an edge in 5G, owing to its $23 billion buyout of Sprint Corp. in 2020.
However, Verizon and AT&T ramped up their handset offers during the holiday season to tap into growing demand after the latest iPhone launch, hitting T-Mobile’s torrid growth.
The carrier added 927,000 postpaid phone subscribers in the fourth quarter, the highest among its peers.
But, its churn rate, which refers to the percentage of customers who stopped using the company’s services, was also the highest compared to rivals, at 0.92%. By contrast, Verizon reported churn of 0.89% for monthly phone subscribers while AT&T’s came in at 0.84%.
Moreover, executives have hinted at a cool-down in growth as demand for phones with video-conferencing and premium plans that supported remote work fades as offices reopen.
T-Mobile expects to add between 5 million and 5.5 million net monthly-bill paying subscribers in 2023, compared with the 6.4 million additions it reported in 2022.
The company earned $1.18 per share on revenue of $20.27 billion in the fourth quarter, compared with analysts’ average estimate of $1.10 per share profit on revenue of $20.60 billion, according to Refinitiv data.
Analysts are also looking for further commentary on the company’s recent data breach that may have exposed 37 million postpaid and prepaid accounts. The company had said it may incur significant costs related to the incident in January.
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