T-Mobile US (TMUS.O) on Wednesday raised the lower end of its annual free cash flow forecast after quarterly subscriber additions topped estimates as customers flocked to the company’s more affordable plans in a highly competitive market.
Wireless carriers have been vying for customers as they tighten their purse strings, including delaying phone upgrades and hitting purchases of bundled plans, due to an uncertain economy.
T-Mobile now expects adjusted free cash flow for the year to be between $13.4 billion and $13.6 billion, compared with its prior forecast of $13.2 billion to $13.6 billion.
Fewer customers switching operators and solid promotional activity along with migration to higher-tiered unlimited plans also helped T-Mobile drive subscriber growth.
The company added 850,000 postpaid phone customers in the third quarter, the highest among peers, beating FactSet estimates of 773,400 additions.
The company also raised its full-year forecast for wireless subscriber growth and now expects wireless subscriber net additions between 5.7 million and 5.9 million, up from its earlier forecast of 5.6 million to 5.9 million.
T-Mobile has been trying to outdo peers with its bundled deals following the recent launch of the iPhone 15.
However, analysts said that overall industry promotions have been less aggressive compared with those offered following the launch of iPhone 14 last year.