T-Mobile profit nearly triples as it adds more customers

T-Mobile US Inc  nearly tripled its profit in the fourth quarter as it gained more than 2 million subscribers drawn by aggressive promotions like free video streaming.

Net income jumped to $297 million, or 34 cents per share, in the quarter from $101 million, or 12 cents per share, a year earlier. This surpassed the average analyst estimate of earnings of 15 cents per share.

Total revenue rose 1.1 percent to $8.25 billion, beating the average analyst estimate of $8.20 billion.

To lure customers from rivals Verizon Communications Inc , it has launched promotions like data rollover offers and lower-priced phone leasing plans in recent months.

In November, it launched a new service “Binge On” in November to give customers the option to stream video from services such as Netflix Inc, on their mobile devices without having it count against their data plans.

T-Mobile added a net 2.1 million customers, including 1.3 million new monthly or postpaid customers in the three months ended Dec. 31. In 2016, it said it expects to add a net 2.4 million to 3.4 million postpaid customers, compared with the 4.5 million it added in 2015.

The company’s average revenue per postpaid user fell marginally to $48.05 in the fourth quarter from $48.26 a year earlier, mainly due to promotions.

To upgrade its network, the company plans to invest up to $10 billion to buy low-frequency airwaves in a U.S. government auction that starts on March 29. In addition to its bigger rivals Verizon and AT&T, it will go up against with Comcast Corp and Silicon Valley investment firm Social Capital that have filed to participate in the auction.

T-Mobile shares, which have fallen about 7 percent this year through Tuesday, were up 4.1 percent in pre-market trading after closing at $36.45 on Tuesday on the Nasdaq.