Mobile phone service provider, T-Mobile Us Inc (NYSE:TMUS) reported gaining about 1.8 new subscribers within the first quarter, most of them subscribing to its popular pre-paid service.
The new subscribers make now make up a total of 56.8 million people subscribed to the company’s services. The new clientele is expected to boost the service provider’s ranking to number three in the USA. It will however not be confirmed until competing firm, Sprint Corp (NYSE:S) releases their quarterly performance report.
Sprint has been one of the thriving competitors in the industry. The company has been in cut throat competition with T-Mobile and other service providers. T-Mobile has proven itself as a legitimate threat to Sprint. Now for the first time the company has a chance at being ranked above Sprint.
T-Mobile has been on a constant rise. The company’s CEO, John Legere reported that the company has been enjoying additional subscriptions for the last eight consecutive quarterly financial periods. Each period was characterized by over 1 million new additional new subscribers.
The satisfactory growth in the number of subscribers can partly be attributed to the company’s increased advertising efforts. Additionally the mobile service provider offers superb services that place consideration on affordable mobile and internet services.
Despite the good news, the company reported a loss of $0.09 per share value in the first quarter. It had recorded a loss of $0.19 per share in the previous quarterly period. Revenues for the first quarterly period amounted to $7.8 billion compared to the previous profits that amounted to 7.7 billion. There was thus a 13.1% improvement.
Braxton Carter, who is the company’s current CFO, said that the company expects a stable profit trend for the rest of the financial year. T-Mobile also expects the number of subscribers to go up by an estimated 3 million or 3.5 million new subscribers. If the trend continues, Sprint will have a hard time keeping up with the competition. Perhaps Sprint also has a competitive strategy up their sleeves.