T-Mobile US () reported more positive-than-expected first quarter earnings Wednesday, while strengthening its net addition prediction for the entire year, as it continues to attract new customers with its expanded 5G network.
T-Mobile said it saw diluted earnings for the three months ending March at 57 cents per share, down 23% from the same period last year, but reached an acceptable rate of 33 cents per share. Group revenues also rose 8% to a forecast-beating $20.12 billion, partly due to net customer additions of 1.5 million, including 589,000 post-paid additions, and wireless carriers' most valuable clients.
T-Mobile said it expects net customer additions of between 5.3 million and 5.8 million each year, up from a previous forecast of 5 to 5.5 million.
Synergies from Sprint's merger are expected to reach $5.2 billion to $5.4 billion. Full year free cash flows should reach $7.2 billion to $7.6 billion, according to T-Mobile.
"T-Mobile continues to be the leader in this industry, with a second beat and raise of a quarter that delivered front-of-the-pack postpaid, new account, and broadband customer results," according to CEO Mike Sievert. "Only the Un-carrier's unprecedented network leadership in the 5G era has enabled us to provide the finest network and value without compromise, effectively solving one of the most prevalent problems in the wireless industry."
"And we are doing this while increasing our integration and delivering greater synergies faster than anticipated," he said. "I'm pleased to continue keeping momentum until the end of the year."
Following T-Mobile's earnings release, T-Mobile shares were marked 2.2 percent higher in pre-market trading, indicating an opening bell price of $128.30 per month.