T-Mobile raises subscriber forecast

T-Mobile US Inc.'s popularity among wireless consumers continued as the fastest-growing mobile carrier exceeded subscriber estimates and again raised its forecast for customer growth this year.

T-Mobile expects to add 3 million to 3.6 million customers this year, up from an April forecast of 2.8 million to 3.5 million, the Bellevue, Wash.-based carrier said in a statement Wednesday. The company raised its profit outlook for 2017, suggesting that promotions, price cuts and giveaways needed to attract new customers aren't hurting the bottom line.

The results show T-Mobile emerging as a winner in an industry price war that has every major competitor offering phone discounts and unlimited data plans. The company's ability to take market share from rivals has put it at the center of consolidation talks, including preliminary discussions with Sprint.

'While we continue to believe the stock will be driven by M&A-related stories and events that add near-term risk, the company is showing it can continue be successful on a stand-alone basis while it waits to see what ultimately happens,” Colby Synesael, an analyst at Cowen and Co., wrote in a note Thursday.

Deutsche Telekom, the German telecom giant that owns about 64 percent of T-Mobile, will report second-quarter earnings on Aug. 3.

T-Mobile signed 817,000 new customers in the second quarter, more than the 731,250 analysts were expecting. Earnings more than doubled to 67 cents a share, shattering the 36-cent average estimate of analysts.

Even with the higher forecast, the company is unlikely to match its 4.1 million subscriber additions from 2016. Sprint, which trails T-Mobile in wireless customers, has introduced even more aggressive promotions, including a full year of free, unlimited data.

Bigger rivals AT&T and Verizon have followed T-Mobile in offering unlimited data plans.