T-Mobile Forecasts Robust Subscriber Growth, Boosting Shares on Affordable 5G Plans
Bellevue, Washington-based T-Mobile (NASDAQ: TMUS) announced stronger-than-expected annual subscriber growth estimates on Wednesday, fueled by the popularity of its premium 5G plans. The company's shares surged 7% in premarket trading.
According to FactSet, T-Mobile expects postpaid net customer additions to reach between 5.5 million and 6 million by the end of 2025, significantly exceeding Wall Street's projections of 2.7 million.
T-Mobile's Go5G Next and Go5G Plus plans have gained traction, combining high-speed internet with popular streaming services like Netflix and Apple TV+. This strategy led to industry-leading postpaid phone net additions of 903,000 in the fourth quarter of 2024, surpassing FactSet's estimate of 858,500.
Black Friday promotions and the introduction of the AI-enhanced iPhone series further stimulated demand for American wireless carriers, driving increased customer activity in the final quarter of 2024.
T-Mobile has also expanded its customer base by enhancing coverage and focusing on smaller markets and rural areas. The company's fixed wireless access solution provides an alternative internet option in regions with limited fiber optic infrastructure.
For the three months ended December 2024, T-Mobile reported total revenue of $21.87 billion, exceeding analysts' estimates of $21.31 billion (LSEG data). The company added 428,000 broadband subscribers, surpassing Visible Alpha's estimate of 402,000 additions.
Over the past year, T-Mobile's shares have appreciated by approximately 36%, outperforming AT&T's 35% gain and Verizon's 6% increase.