T-Mobile tops Q4 earnings targets, hits back at Verizon on unlimited plan

T-Mobile CEO John Legere revealed that the "un-carrier" was improving its T-Mobile One unlimited plan, a day after Verizon said it would offer unlimited data.

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T-Mobile CEO John Legere.

T-Mobile released its fourth quarter earnings results February 14 as the wireless industry reignites a love affair with unlimited data.

In response to Verizon's pivot to begin offering customers an unlimited data plan, T-Mobile CEO John Legere announced that the "un-carrier" was improving its T-Mobile One unlimited plan to include HD video. T-Mobile will also now let customers use up to 10GB of high-speed data each month for hotspot tethering. To further sweeten the deal, T-Mobile will begin offering a two-line family plan for $100.

"I don't blame Verizon for caving," Legere said in a series of tweets. "They just lost their network advantage, and they know it. This is what the un-carrier does -- drag the carriers kicking and screaming into the future. Next up, we're going to force them to include monthly taxes and fees. Mark my words."

As for the numbers, T-Mobile reported Q4 net income of $390 million, or 45 cents per share, up from $297 million, or 34 cents per share, a year earlier.

Total revenue was $10.18 billion, compared with last year's $8.25 billion in the same quarter.

Wall Street was looking for earnings of 28 cents a share on revenue of $9.86 billion.

The carrier's adjusted EBITDA was $2.5 billion, up 12 percent from a year ago.

T-Mobile said it added a total 2.1 million customers in the quarter, marking the 15th consecutive quarter it delivered more than one million net adds. Breaking it down, T-Mobile said it added 933,000 postpaid accounts, which are considered the most lucrative category of wireless subscribers.

In prepared remarks, Legere touted that T-Mobile has "taken all of the postpaid phone growth in the industry."

The company says it now has more than 71.5 million total customers.

In 2017, T-Mobile expects to add between 2.4 million and 3.4 million post paid customers.

On the financial side, the carrier expects adjusted EBITDA to be in the range of $10.4 billion to $10.8 billion.

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