T-Mobile reported Thursday a 3.8 percent net income boost to $332 million in the third quarter compared to the year-earlier period.
Earnings improved as we continued to focus on making smartphones affordable to all Americans through our unlimited Value plans, improvements to our 4G network, and an expanding portfolio of 4G devices, Philipp Humm, President and CEO of T-Mobile USA said in a statement.
The company reported 126,000 net customer additions, down from 137,000 last year but a significant improvement to a second-quarter 50,000 net loss in subscribers. Furthermore, 10.1 million T-Mobile customers were using 3G or 4G smartphones, up 40 percent from the year-earlier period.
Total revenue was $5.2 billion in the third quarter, down slightly from $5.4 billion in the year earlier period. Cash capital expenditures were $741 million, up from $643 million last year. The company said this was due to payment timing differences.
T-Mobile is the fourth largest wireless carrier in the United States, behind Verizon, AT&T and Sprint. The company targets price conscious consumers by providing lower-cost wireless plans compared to the major rivals.
Earlier this year, AT&T announced their intentions to purchase T-Mobile USA for $39 billion. However, the Justice Department filed a lawsuit attempting to block the merger. The government argues that the merger would lead to weaker service and higher prices for wireless customers. Also, the government has also expressed concerns that the merger would lead to the elimination of jobs, which AT&T disputes.
Sprint, which is viewed as another low-cost telecommunication company, has vigorously opposed the merger.
T-Mobile USA is a subsidiary of Deutsche Telekom, based out of Bonn, Germany. The parent company reported Thursday that net profits were up 14.6 percent to €1.1 billion ($1.49 billion).