Key Takeaways:
T-Mobile US Inc. (TMUS) reported first-quarter revenue of $23.11 billion, bolstered by a 6% year-over-year increase in postpaid net account additions that outpaced analyst expectations and prompted the carrier to lift its annual forecast.
"Over 90% of our postpaid accounts actually have more than one line in that relationship," CFO Peter Osvaldik told Reuters, highlighting the company's focus on higher-value customers.
The wireless carrier's results showed strong momentum in customer acquisition against a saturated market backdrop. T-Mobile also announced a strategic shift in its reporting, moving to emphasize account growth and average revenue per account over individual phone subscriber additions starting this quarter.
The results come as rival Verizon (VZ) also posted a surprise gain in mobile subscribers, indicating a highly competitive environment for customer retention and growth. The report also landed against the backdrop of a Reuters report that Deutsche Telekom, which holds a majority stake in T-Mobile, is exploring a deal to combine with the U.S. operator.
The guidance increase signals management's confidence in its competitive pricing and bundled streaming benefits to continue attracting customers. Investors will watch for further details on the Deutsche Telekom situation and the progress of the new account-focused strategy in the company's upcoming Q2 earnings call.
This article is for informational purposes only and does not constitute investment advice.
