FILE PHOTO: A T-Mobile logo is seen on the storefront door of a store in Manhattan, New York, U.S., April 30, 2018. REUTERS/Shannon Stapleton

(Reuters) – T-Mobile US Inc (TMUS.O) added more monthly bill paying phone subscribers than expected in the first quarter, thanks to cheaper plans compared to its rivals and a surge in demand for phone services as people work from home amid lockdowns.

However, the telecom operator declined to give a full-year outlook due to uncertainty over the impact of the COVID-19 pandemic.

It added 452,000 net new monthly paying phone subscribers in the first quarter, above analysts’ estimates of 426,000 from research firm FactSet.

The company posted a marginal rise in revenue to $11.1 billion from a year earlier, but misses expectations of $11.38 billion.

T-Mobile had closed 80% of its stores to comply with the lockdown. However, an increase in service revenue offset the fall in demand.

Net income rose to $951 million from $908 million a year earlier. Excluding items, it earned $1.10 per share, above analysts’ average estimate of $1.02 per share.

The company said it was expanding its 5G rollout as demand continues to rise during the lockdowns.

This is T-Mobile’s first earnings report after it closed its $23 billion merger with Sprint Corp in April and switched its executive leadership, ending a long legal battle with state attorneys general who argued that the merger would be anticompetitive.

Reporting by Anirban Sen and Neha Malara in Bengaluru and Arriana McLymore in Raleigh, North Carolina; Editing by Saumyadeb Chakrabarty and Arun Koyyur

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