T-Mobile expects to add hundreds of thousands more subscribers than previously projected
The telecom provider is scoring more subscribers
T-Mobile CEO Mike Sievert discusses how they’re keeping up with demands of people working from home.
T-Mobile expects to add more monthly subscribers in the second quarter than previously projected, a lot more, according to an SEC filing.
The company said it now expects new postpaid subscriptions to be between 800,000 to 900,000, up from 0 to 150,000 projected last month.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TMUS | T-MOBILE US INC. | 237.95 | -2.93 | -1.22% |
The wireless carrier attributes the increased projection to a “faster recovery in retail than expected as well as new opportunities in T-Mobile for Business.” T-Mobile has now reopened many of the stores that it was forced to close down during earlier months of the coronavirus pandemic.
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The regulatory filing also revealed that expected costs related to COVID-19 were trimmed by $100 million to $350 to $450 million, but the company expects to incur an additional $300 million in merger-related costs "to accelerate synergy realization."
T-Mobile recently completed its $26 billion merger with Sprint in April after clearing multiple legal hurdles.
T-Mobile also announced that it is promoting its current chief accounting officer, Peter Osvaldik, to Chief Financial Officer on July 1st, succeeding longtime finance chief Braxton Carter. The announcement of its new CFO comes during a tumultuous week for the company.
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It dealt with a roughly 12-hour widespread outage of voice and text service on Monday, which the company explained Tuesday was caused by a “leased fiber circuit failure from a third-party provider.” The FCC said it has launched an investigation into the outage.
Management also informed hundreds of Sprint employees this week that their jobs were being eliminated. James Kirby, T-Mobile’s vice president, told nearly 400 employees in one six-minute phone call Monday that their services were no longer needed, according to TechCrunch. The company wrote in a blog post-Tuesday that those laid off “will be supported in their efforts to find a new position outside the company.”