As customers rushed to T-Mobile US’s cheaper plans in a fiercely competitive industry, quarterly subscriber additions beat projections. On Wednesday, the firm boosted its free cash flow prediction’s lower end of the year.
Due to an unstable economy, consumers have been cutting back on purchases of bundled plans and postponing phone upgrades, among other actions wireless carriers take in a bid for business. Having previously predicted between $13.2 billion and $13.6 billion, T-Mobile now projects adjusted free cash flow for the year to be between $13.4 billion and $13.6 billion.
Strong promotional activity, fewer customers switching carriers, and adopting higher-tiered unlimited plans contributed to T-Mobile’s subscriber growth. Surpassing FactSet projections of 773,400 additions, the business added 850,000 postpaid phone users in the third quarter, the most among peers.
Additionally, the business increased its projection for cellular subscriber growth for the entire year. Previously, it had predicted between 5.6 million and 5.9 million net additions to wireless subscribers; now, it anticipates between 5.7 million and 5.9 million. Following the recent release of the iPhone 15, T-Mobile has been attempting to surpass competitors with its bundled offers.
Analysts noted, though, that overall industry marketing has not been as intense as it was during the release of the iPhone 14 last year. LSEG data shows that T-Mobile’s total revenue for the three months ended in September was $19.25 billion, lower than experts’ projections of $19.32 billion.
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