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The
U.S. wireless carrier has been adding thousands of wireless
subscribers lately, thanks to discounts on smartphones,
industry-low plan prices and an edge in 5G, owing to its $23
billion buyout of Sprint Corp. in 2020.
However, Verizon and AT&T ramped up their handset offers during
the holiday season to tap into growing demand after the latest
iPhone launch, hitting T-Mobile's torrid growth.
The carrier added 927,000 postpaid phone subscribers in the
fourth quarter, the highest among its peers.
But, its churn rate, which refers to the percentage of customers
who stopped using the company's services, was also the highest
compared to rivals, at 0.92%. By contrast, Verizon reported
churn of 0.89% for monthly phone subscribers while AT&T's came
in at 0.84%.
Moreover, executives have hinted at a cool-down in growth as
demand for phones with video-conferencing and premium plans that
supported remote work fades as offices reopen.
T-Mobile expects to add between 5 million and 5.5 million net
monthly-bill paying subscribers in 2023, compared with the 6.4
million additions it reported in 2022.
The company earned $1.18 per share on revenue of $20.27 billion
in the fourth quarter, compared with analysts' average estimate
of $1.10 per share profit on revenue of $20.60 billion,
according to Refinitiv data.
Analysts are also looking for further commentary on the
company's recent data breach that may have exposed 37 million
postpaid and prepaid accounts. The company had said it may incur
significant costs related to the incident in January.
Adjusted profit after deducting lease revenues is expected to be
between $28.7 billion and $29.2 billion in 2023, up 10% year
over year at the mid-point, T-Mobile said.
Shares in the Bellevue, Washington-based company fell 0.5% in
premarket trading on Wednesday.
(Reporting by Eva Mathews in Bengaluru; Editing by Shinjini
Ganguli and Mark Porter)
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