T-Mobile forecasts annual subscriber growth above estimates Reuters via biedexmarkets.com

T-Mobile forecasts annual subscriber growth above estimates Reuters via biedexmarkets.com

© Reuters. A T-Mobile store is pictured in the Manhattan borough of New York, New York, U.S., May 20, 2019. REUTERS/Carlo Allegri/File Photo

(Reuters) -Wireless carrier T-Mobile US (NASDAQ:) forecast monthly bill-paying phone subscriber growth for the year above estimates on Thursday, banking on its wide 5G coverage and promotional offers to draw in consumers.

Shares of the company, however, fell nearly 3% in extended trading, after a miss on profit target for the fourth quarter.

The company expects to add 5 million to 5.5 million subscribers in the full-year 2024, beating Wall Street expectations of 2.67 million, according to FactSet.

“We have growth opportunities in other areas like smaller markets and rural areas, which is 40% of the U.S. population, and where we continue to see growth,” Chief Financial Officer Peter Osvaldik said in an interview.

New bundled plans like Go5G Next and Go5G Plus also helped attract consumers, he added.

T-Mobile added 934,000 monthly bill-paying phone subscribers in the October-December quarter, above expectation of 877,900, according to FactSet, and higher than rivals AT&T (NYSE:) and Verizon for the same period.

The wireless carrier is attracting subscribers on the back of its wide 5G network footprint and competitive offers at a time when growth in the U.S. telecom market is tapering.

T-Mobile posted earnings per share of $1.67, missing estimates of $1.9, according to LSEG.

Total revenue grew 1% to $20.48 billion, higher than estimates of $19.64 billion, according to LSEG.

Earlier in the week, Verizon Communications (NYSE:) forecast annual profit above estimates and posted its highest quarterly subscriber additions in nearly two years. AT&T missed its annual profit target as it lowered the value of some of its old equipment.