T-mobile Profit Nearly Triples As It Adds More Customers

T-Mobile US Inc’s (TMUS.O) profit nearly tripled in the holiday quarter as aggressive price cutting and offers helped it draw customers away from competitors.

T-Mobile added a net 2.1 million customers in the three months ended Dec. 31.

The company’s average revenue per postpaid user fell marginally to $48.05 in the fourth quarter from $48.26 a year earlier, mainly due to promotions.

T-Mobile said it expects to add a net 2.4 million to 3.4 million branded postpaid customers in 2016, compared with the 4.5 million it added in 2015.

T-Mobile has rolled out a series of initiatives in the past three years to lure customers from bigger rivals Verizon Communications Inc (VZ.N) and AT&T Inc (T.N), including free music and video streaming and lower-priced plans with phone leasing and data rollover offers.

T-Mobile said in November it would give customers a new option to stream video from services such as Netflix Inc (NFLX.O), on their mobile devices without having it count against their data plans.

Net income nearly tripled to $297 million, or 34 cents per share, in the quarter from $101 million, or 12 cents per share, a year earlier.

Total revenue rose 1.1 percent to $8.25 billion, beating the average analyst estimate of $8.20 billion.

REUTERS