Mobile Has Strong Q2 With Increases in Revenue and Customers
T-Mobile, which ranks No. 4 among the nation’s wireless carriers, reported earlier this month that it had 2.1 million net customer additions during the second quarter, bringing its subscriber count to just under 59 million.
In a preliminary report, T-Mobile had reported to add over 760,000 phone subscribers throughout its second quarter.
T-Mobile US Inc., in a push to overtake Sprint Corp.as the third-largest U.S. wireless carrier, exceeded analysts’ second-quarter earnings estimates and raised its subscriber growth forecast. That increased capex spending helped T-Mobile US boost LTE coverage to 290 million potential customers at midyear, with plans to still hit 300 million pops covered by year end.
Indeed, the company’s challenger strategy continues to pay off, with T-Mobile US adding 2.1 million new customers during the quarter. The carrier had $6.1 billion service revenues, up 12 percent from a year ago.
T-Mobile’s entertaining shenanigans are paying off in a big way. And it might be working: Verizon’s customer growth, for example, is slowing. Its revenue rose 14 percent to $8.18 billion.
The voice over Internet protocol (VoIP) provider surged after posting adjusted earnings of 9 cents a share on revenue of $221.9 million, compared with analysts’ expectations of net income of 7 cents a share on revenue of $219.4 million, according to an Associated Press report. Analysts had predicted about $8 billion. Meanwhile, Wideband LTE is available in 212 markets, a number that’s expected to grow to more than 250 by the end of 2015.
Operating profit fell to $597 million from $962 million in Q2 2014, when T-Mobile benefitted to the tune of $747 million by selling spectrum licences.
Moreover, T-Mobile (NYSE:TMUS) does not have a very impressive score when it comes to the American Customer Satisfaction Index. They are now expecting to add about 3.4 to 3.9 million branded postpaid net adds in 2015. Jefferies Group restated a “buy” rating and set a $45.00 target price (up previously from $41.00) on shares of T-Mobile US in a research report on Friday, July 10th. While postpaid churn dropped year-over-year from 1.48% to 1.32%, it ticked up from 1.3% sequentially. The carrier also noted 175,000 branded prepaid connections migrated to postpaid options, which was down sequentially. Earlier this summer, the company announced an enticing new program that allows customers to upgrade their smartphones multiple times a year. As of now, T-Mobile said 100 percent of the MetroPCS AWS and PCS spectrum on a MHz/POP basis has now been re-farmed and integrated into the T-Mobile network, compared to 80 percent at the end of the first quarter.