T-Mobile tops Q1 targets on strong customer gains
Video: T-Mobile builds 5G muscle with Sprint union
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T-Mobile delivered strong first quarter financial results on Tuesday following its $26 billion merger with Sprint. The self-proclaimed Un-carrier said its Q1 numbers were bolstered by record low churn and strong customer gains.
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On the subscriber front, T-Mobile added 1.4 million net customer additions in the first quarter, topping estimates.
Breaking it down, T-Mobile said it added 617,000 postpaid accounts, which are considered the most lucrative category of wireless subscribers. Churn for postpaid phones came in at 1.07 percent for the quarter.
The company says it now has more than 74 million total customers.
As for the numbers, T-Mobile reported Q1 net income of $671 million, or 78 cents per share, on revenue of $10.5 billion. Wall Street was looking for earnings of 71 cents a share on revenue of $10 billion.
The carrier's adjusted EBITDA was $2.9 billion, up 11 percent from a year ago.
In 2018, T-Mobile expects to add between 2.6 million and 3.3 million post paid customers.
On the financial side, the carrier expects adjusted EBITDA to be in the range of $11.4 billion to $11.8 billion.
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In its earnings release, T-Mobile took swipes at its remaining two rivals, Verizon and AT&T:
"In Q1 2018, we again expect to lead the industry with more postpaid phone net additions than Verizon, Comcast, and AT&T combined. These incredible customer results have translated into industry-leading financial growth, as once again, T-Mobile is the only wireless provider to grow service revenues year-over-year. Meanwhile, both of our largest competitors have been unable to grow service revenues year-over-year for 13 straight quarters."