(Reuters) – T-Mobile forecast stronger-than-expected annual subscriber growth driven by increased demand for its affordable premium 5G plans on Wednesday, boosting its shares 7% in premarket trading.
The Bellevue, Washington-based company expects postpaid net customer additions to be between 5.5 million and 6 million in full-year 2025, compared with Wall Street’s expectation of 2.7 million, according to FactSet.
T-Mobile’s Go5G Next and Go5G Plus have resonated with customers as they bundle high-speed internet with popular services such as Netflix and Apple TV+.
This led to industry-leading postpaid phone net additions of 903,000 in the fourth quarter, beating a FactSet estimate of 858,500 additions.
Black Friday deals and the launch of the AI-powered iPhone series further boosted demand for American wireless carriers, driving increased customer activity in the last three months of 2024.
The company has expanded its customer base by improving coverage and targeting smaller markets and rural areas. T-Mobile is offering fixed wireless access as an alternative internet solution in regions where fiber optic infrastructure is either sparse or unavailable.
T-Mobile’s total revenue for the three months to December stood at $21.87 billion, above analysts’ estimate of $21.31 billion, according to data compiled by LSEG.
T-Mobile added 428,000 new broadband subscribers in the reported quarter, beating analysts’ estimate of 402,000 additions, according to Visible Alpha.
Its shares gained about 36% last year, outpacing a 35% increase for AT&T and a 6% gain for Verizon.
(Reporting by Harshita Mary Varghese in Bengaluru; Editing by Pooja Desai)
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