T-Mobile Has a Big Correction for Its Postpaid Subscriber Additions
Last quarter, T-Mobile (NASDAQ: TMUS) blew past analysts' expectations for postpaid phone net subscriber additions. The wireless carrier reported 786,000 new subscribers, where analysts were only expecting about 607,000 net additions on average.
But the outperformance wasn't because a lot of new subscribers signed up for T-Mobile. It was that T-Mobile added hundreds of thousands of new "lines" through its DIGITS product, which provides a virtual phone number to ring multiple phones. Customers get a free DIGITS number with T-Mobile's high-end unlimited plan.
At the Goldman Sachs Communicopia Conference, CFO Braxton Carter told the audience that management has heard investors loud and clear. If they want transparency, T-Mobile's going to give it to them. The company's third-quarter report will retroactively reclassify DIGITS subscribers from postpaid phone to its other postpaid category, which includes connected devices.
Source: Fool.com
T-Mobile US Inc. Stock
With 34 Buy predictions and not a single Sell prediction T-Mobile US Inc. is an absolute favorite of our community.
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