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Subscriber additions drive T-Mobile’s revenue, profit beat
Posted On Jul 27 2016
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All the more impressive, a majority of T-Mobile’s new customers are postpaid, meaning they signed onto subscription plans rather than opting for the carrier’s cheaper, prepaid alternatives. Capital expenditures for the quarter totaled $1.3 billion, which were up from $1.2 billion in the second quarter of 2015. This marks the 13th consecutive quarter of over a million net users. Wall Street is looking for revenue of at least $9.16 billion.
On the network side, T-Mobile says that its 4G LTE service now reaches 311 million people, up from 308 million in Q1 2016 and 290 million in Q2 2015.
Long the underdog in a market dominated by Verizon Communications Inc. and AT&T Inc., T-Mobile has been grabbing market share in recent years, adding millions of customers in a competitive industry where most consumers already have a phone line. The company’s postpaid mobile customer churn rate was 1.27 percent, which was down from 1.33 percent in the same quarter a year ago. “T-Mobile’s share gains have not slowed at all”, Mr. Moffett said in a note.
T-Mobile US on Wednesday reported a 12.8% year-on-year increase in second-quarter revenue thanks to net customer additions of 1.88 million.
T-Mobile’s chief operating officer Mike Sievert also weighed in on the Verizon-Yahoo deal, along with AT&T’s acquisition of DirecTV.
T-Mobile US reported quarterly results that beat analysts’ estimates and raised its full-year subscriber growth forecast, as the No. 3 US wireless carrier posted customer gains that surpassed expectations.
T-Mobile Tuesdays was also a hit on social media, drawing more than 6.6 billion impressions, Legere said, a figure that was higher than those pulled any other Un-carrier move.
Legere added that, “I don’t think it impacts us”. “T-Mobile’s remarkable growth rate – service revenues were up 12.1 percent from a year in today’s report in a market that is down year-over-year – and free cash flow trajectory make the case without one having to believe it will be acquired”.
