The US carrier giant T-Mobile has been in the spotlight after the extraordinary increases for its latest quarter, smashing every analyst expectations. The company’s shares rose 1% to 2.5% opening Tuesday’s trading and harboring market shares from rivals such as Verizon Communications Inc., AT&T Inc., and Sprint Corp.
T-Mobile has been having a strong start this year with a fourth-quarter profit reports that trample every analysts forecast; the company’s revenue increased a total of 24%, propelled by the optimistic growth of net postpaid phone subscribers that tallies around 933,000 that pays monthly phone bills and an estimated 541,000 net prepaid account for the past three months. The quarter ended last December, the net income was at $390 million or 45 cents per share, which shattered Wall Street’s forecast of around 28 cents per share.
The carrier’s revenue has set a milestone of $10.18 billion in the quarter, a total of 23% increase year over year, overtaking last year’s $8.25 billion and above consensus estimates of $9.86 billion, T-Mobile also added customers and subscribers in the fourth quarter by 2.1 million.
According to CEO John Legere "The competitive environment so far is based upon moves that others are making out of desperation," and “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,” ending with “The Un-carrier revolution continues in 2017.”
Behind the Success of the Recent Quarter Report
One of the most notable boosts T-Mobile had been its ever growing promotions. The company has started rolling out baskets of commercials and promotion, some are new initiatives designed to catch consumers that are patronizing market rivals. This made analysts back up and wait for the further reaction from the consumers. Promotions were focused with the carrier’s growing offering, which includes the free video-streaming promotions like Binge On and unlimited data plans to families.
Possible T-Mobile, Sprint Merging
T-Mobile still announced that it is still hopeful on the possible partnership with Sprint. MoffettNathanson’s analyst Craig Moffett said is harder to justify because of Verizon’s latest decision to pursue and offer unlimited data which means that prices will be pushed down, “To wit: isn’t Verizon’s pricing response a sign that the four player market is working precisely as it should?” Craig said.
Last 2011, President Barack Obama has interrupted a possible acquisition of T-Mobile by AT&T with the reason of it as being bad for the competition. Analysts are skeptical on how President Donald Trump’s administration handles this kind of merger and acquisition, although T-Mobile has increased a total of 23% ever since the November 9 election.
The potential merger is still a possible outcome coming this 2017 with the new administration. T-Mobile has been increasing its customer size and has been riding smoothly along the new current; it proves that it can well manage against its competitor even with the tinge of market volatility in the past months. The tremendous quarter has provided T-Mobile better opportunities to lead the carrier market, the growing postpaid phone subscriber and prepaid subscribers can still potentially blossom. But one thing T-Mobile sees as a threat will be other carriers such as Verizon offering unlimited data.
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