T-Mobile US, Inc. (NASDAQ: TMUS) Tuesday reported quarterly revenue and profit that topped analysts’ estimates as the company gained more customers by offering promotions like unlimited data.
The third largest U.S. wireless carriers said net income rose 31 percent to $390 million, or 45 cents per share, in the fourth quarter, compared with $297 million, or 34 cents per share, a year. Revenue rose 23.4 percent to $10.2 billion.
Analysts polled by Thomson Reuters had projected a profit of 30 cents per share on revenue of $9.84 billion.
"These results are proof that doing right by customers is also good for shareholders. Not only are customers flocking to T-Mobile, but we're also producing rock-solid financial results." said CEO John Legere in the earnings release. "The competition just doesn't get that customers want to come first! That's three years in a row that we've added more than 8 million customers and taken all of the postpaid phone growth in the industry."
The company is gaining market share from Verizon Communications Inc. and AT&T Inc. by offering a number of promotions, including Binge On and unlimited data plans to families and video junkies hooked on YouTube and Snapchat. Nowadays, people need larger data package as they read videos and photos on their smartphone via social media networks.
On Monday, Verizon announced to join its rivals to provide unlimited data plan. Investors are worried about the price war among the four biggest wireless carriers would send their margin lower.