T-Mobile US has announced an impressive second quarter, exceeding subscriber expectations and raising its full-year forecast. The company attributed its success to the strong demand for its discounted unlimited plans that include streaming perks. These bundled plans, Go5G Next and Go5G Plus, offer access to streaming services like Netflix and Apple TV+, attracting 30% of its postpaid subscriber base.
In the second quarter, T-Mobile added 777,000 postpaid phone customers, surpassing its previous record and beating analysts’ estimates. This growth outpaced competitors Verizon and AT&T, highlighting the company’s strong position in the market.
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To further capitalize on this trend, T-Mobile raised prices for its legacy phone plans in May, encouraging customers to switch to the more lucrative 5G plans. This move, combined with the continued success of its bundled plans, has led to a revised full-year subscriber addition forecast of 5.4 million to 5.7 million, up from the previous range of 5.2 million to 5.6 million.
T-Mobile’s strong financial performance is further evidenced by its exceeding revenue and profit expectations in the second quarter. The company also increased its forecast for annual adjusted free cash flow.