T-Mobile adds 1.9 million customers in Q2, postpaid churn drops
T-Mobile CEO John Legere: "The best postpaid phone churn numbers in our history."
T-Mobile reported solid second quarter financial results Wednesday driven by continued customer growth.
Tech Earnings
The nation's No. 3 wireless carrier said it added 1.9 million customers to its network during Q2, marking the 13th consecutive quarter it delivered more than one million net adds.
Breaking that number down, T-Mobile said it added 890,000 post-paid accounts, which are the most lucrative category of wireless subscribers. The carrier has said previously it expects branded postpaid customer growth to slow this year, and according to the numbers, that's what's happening. Last quarter, T-Mobile added just over one million postpaids.
On the upside, postpaid churn was 1.27 percent in the first quarter, which T-Mobile CEO John Legere said was "the best postpaid phone churn numbers in our history".
As for the rest of the numbers, the company reported Q2 net income of $225m, or 25 cents per share, on revenue of $9.2bn, up 12.8 percent year-over-year.
Wall Street was looking for earnings of 20 cents a share on revenue of $9.03bn.
The carrier's adjusted EBITDA was $2.5bn, up 36 percent from a year ago.
T-Mobile raised its guidance for postpaid net adds from 3.2 million to 3.6 million to 3.4 million to 3.8 million.
In terms of profitability, the carrier is narrowing its prediction for the third quarter to a range of $9.8bn to $10.1bn in adjusted EBITDA. The previous range was $9.7bn to $10.2bn. Wall Street is looking for revenue of at least $9.16bn.
Overall, T-Mobile's often unconventional, "un-carrier" perks have helped the company bring in new customers and keep the ones it already has.
In June, Legere handed out free Gogo in-flight Wi-Fi and free company stock to customers in Times Square in New York City. Legere later announced that the company would offer free high-speed data for customers traveling to Europe throughout July and August.