T-Mobile US (NASDAQ:TMUS) has revealed they have added 1.1 million new subscribers in the first quarter of this year, even as their rival Verizon Communications (NYSE:VZ) has lost customers. This is the 16th consecutive quarter the wireless carrier has managed to gain more than a million subscribers.
T-Mobile’s Profits Increase By 46 Percent
T-Mobile announced their Q1 financial results on Monday. Profits in the quarter stand at $698 million, which is up by 46 percent over the same period of last year. Analysts had said the earnings of the business would be around 35 cents for a share, but eventually, T-Mobile said it was 80 cents, more than double. However, the total revenue was lower than expected. T-Mobile announced a revenue increase of 11 percent. It stands at $9.55 billion, against the expectations of analysts of $9.62 billion.
In the first quarter, the business has gained 798,000 postpaid phone customers, which is deemed to be more valuable because they are more long-term customers than those who take prepaid connections. In total, they now have 72.6 million customers.
The many promotions and perks, such as unlimited data plans and free pizza have helped T-Mobile attract more subscribers.
T-Mobile CEO Slams Verizon
Verizon, on the other hand, has lost 289,000 phone customers in the last quarter according to their first-quarter results, which came out last week. Commenting on this, John Legere, the outspoken CEO of T-Mobile said, “Verizon’s result is a disaster. That’s really gotta be embarrassing after all that mic-dropping”. He was referring to a recent commercial of Verizon that showed a celebrity dropping a mic on its competition.
The Chief Executive also criticized their competitors for reaching out into new industries, like AT&T’s acquisition of DirecTV, even as T-Mobile is focusing on wireless. He said, “Let’s be clear. They’re not diversifying; they’re dying”.
T-Mobile also announced they will be opening 3,000 more retail stores this year. This will include 1,500 discount carrier MetroPCS stores, and 1,500 T-Mobile stores.
In the meantime, there is a lot of speculation that there will be a revival in the merger talks of T-Mobile US (NASDAQ:TMUS) and Sprint. However, there are reports that Sprint is exploring other ways to unleash value after the recent increase in demand for wireless. The SoftBank Group, Sprint’s parent, believes Sprint’s wireless spectrum is undervalued. It can be used for 5G services. AT&T Inc. also shares this view.