T-Mobile US Inc. (Nasdaq:TMUS) has reported first-quarter revenue that was ahead of analyst estimates and significantly has raised its expectations for postpaid net customer additions in 2018.
The wireless giant that a few days ago agreed to merge with Sprint Corp. (NYSE:S) in a US$26bn transaction said its net income in the first quarter slid 4%, to US$671mln, or US$0.78 a share, from US$698mln, or $US0.80 a share, in the first quarter of 2017. However, T-Mobile said adjusted EBITDA rose 10.8%, to US$2.96bn from US$2.67bn.
Revenue at T-Mobile increased 8.8%, to US$10.46bn from US$9.61bn. Yahoo Finance put the average revenue estimate of 21 analysts at US$10.35bn.
T-Mobile said net customer additions in the latest first quarter totaled 1.43mln, which was up 25.5% from 1.14mln net customer additions in the first quarter of 2017.
For all of 2018, T-Mobile said it expects postpaid net customer additions in the range of 2.6mln to 3.3mln, which is an increase from the prior target range of 2.0mln to 3.0mln.
T-Mobile said adjusted EBITDA for the full year is expected to be in the range of US$11.4bn to US$11.8bn, which is up modestly from the prior target range of US$11.3bn to US$11.7bn.
Shares of T-Mobile offered little reaction to the earnings announcement, as the stock was up less than 1% in early trading, at US$60 a share.