T-Mobile US Inc. (NASDAQ:TMUS) nearly tripled its profits for the period including the holiday quarter after it added around 2.1 million new customers to its network. Aggressive price cuts likewise contributed to the spectacular quarterly earnings.
In August last year, T-Mobile officially dislodged Sprint from its position to become America’s third-biggest telecom company in terms of net subscriber volume.
The mobile carrier said it expects to add a net 2.4 million to 3.4 million branded postpaid subscribers this year, lower than the 4.5 million it added in 2015.
T-Mobile, through an initiative called “Uncarrier,” has rolled out a series of aggressive offers that are designed to attract customers away from bigger competitors Verizon Communications Inc (N:VZ) and AT&T Inc (N:T).
Promotions include free music and video streaming offers, cheaper monthly subscription plans with phone leasing options and data rollovers.
The carrier recently partnered with popular streaming service Netflix (O:NFLX) to allow T-Mobile customers to stream movies and TV shows on their mobile devices without using up the customer’s data plan.
T-Mobile’s net income nearly tripled to $297 million, or $0.34 per share, in the last 3 months leading to December 31 from $101 million, or $0.12 per share, from the same period last year.
Total revenue went up by 1.1% to $8.25 billion, beating expectations of $8.20 billion.
The company’s average revenue per postpaid subscriber, meanwhile, decreased slightly to $48.05 in the 4th quarter from $48.26 a year earlier, due largely to costs associated with promotions.