T-Mobile beats first-quarter postpaid subscriber estimates

T-Mobile US Inc added more monthly bill paying phone subscribers than expected in the first quarter, thanks to cheaper plans compared to its rivals and a surge in demand for phone services as people work from home amid lockdowns.

However, the telecom operator declined to give a full-year outlook due to uncertainty over the impact of the COVID-19 pandemic. It added 452,000 net new monthly paying phone subscribers in the first quarter, above analysts' estimates of 426,000 from research firm FactSet.

The company posted a marginal rise in revenue to $11.1 billion from a year earlier but misses expectations of $11.38 billion. T-Mobile had closed 80% of its stores to comply with the lockdown. However, an increase in service revenue offset the fall in demand.

Net income rose to $951 million from $908 million a year earlier. Excluding items, it earned $1.10 per share, above analysts' average estimate of $1.02 per share. The company said it was expanding its 5G rollout as demand continues to rise during the lockdowns.

This is T-Mobile's first earnings report after it closed its $23 billion mergers with Sprint Corp in April and switched its executive leadership, ending a long legal battle with state attorneys general who argued that the merger would be anticompetitive.