T-Mobile adds 1.6 million net customers in Q2
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T-Mobile added 1.6 million net additions with 1 million postpaid as the wireless carrier is continuing to keep momentum going.
The carrier, which is planning to merge with Sprint, said second quarter earnings were $782 million, or 92 cents a share, on revenue of $10.6 billion, up 4 percent from a year ago.
Wall Street was looking for second quarter earnings of 78 cents a share on revenue of $10.66 billion.
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T-Mobile's postpaid churn also came in at 0.95 percent, a record low for the company.
CEO John Legere said the company's 5G plans were on track. On a conference call, Legere said:
Our plan continues to be to bring 5G to 30 cities in 2018 starting with New York, L.A., Dallas, Las Vegas with nationwide coverage coming in 2020. This network will utilize 600 megahertz and will harness 4G and 5G bandwidth simultaneously for dual connectivity, and we'll be ready for the first 5G smartphones in 2019.
On the Sprint merger, Legere added:
While we still have a number of steps remaining in the regulatory approval process, we are optimistic and confident that regulators will recognize the significant procompetitive benefits of this combination and grant regulatory approval.
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By the numbers:
- The company ended the quarter with 75.6 million customers.
- Average revenue per user on a branded postpaid phone basis in the second quarter was $46.52, down 1.2 percent from a year ago.
- T-Mobile added 686,000 branded postpaid phone net additions.
- The company added 91,000 branded prepaid additions.
- Service revenue in the second quarter was $7.9 billion, up 7 percent.
- T-Mobile said it covers 323 million people with 4G LTE and is targeting 325 million by year end.
- For 2018, T-Mobile said it plans to add 3 million to 3.6 million branded postpaid net customers. Adjusted EBITDA will be between $11.5 billion and $11.9 billion, up from the company's previous range.