T-Mobile US Will Gain More Users, Profit Stays Same

T-Mobile US will gain more subscribers than expected this year amid intensified competition from Verizon and AT&T, even if it means taking a hit on profit, according to Bloomberg.

The third-largest U.S. wireless carrier will add 2.8 million to 3.5 million customers this year, up from an originally forecast range of 2.4 million to 3.4 million, according to a statement Monday. At the same time, the company maintained its profit outlook for 2017, suggesting the cost to get those new customers in the door will offset the additional earnings they generate.

Even at the higher end, those subscribers additions would mark a slight slowdown for the fastest-growing U.S. wireless carrier. Last year the company garnered 4.1 million new monthly subscribers, nearly double that of Verizon.

T-Mobile is eager to keep expanding its subscriber rolls to put pressure on its bigger rivals. Verizon and AT&T are now aggressively marketing mobile-phone packages that include unlimited data, a tacit acknowledgment that the carrier has struck a chord with consumers who want to stream video without worrying about exceeding a cap.

T-Mobile signed 914,000 new customers in the first quarter, more than the 820,000 analysts were expecting. The gain helped the company post profit excluding some items of 48 cents a share, beating analysts’ 35-cent average estimate.

T-Mobile maintained its forecast for 2017 adjusted earnings before interest, taxes, depreciation and amortization of $10.4 billion to $10.8 billion, with analysts expecting $10.7 billion on average. Last year T-Mobile posted adjusted Ebitda of $10.4 billion.