T-Mobile US results continue to be strong
T-Mobile US kicked off second quarter reporting with numbers that shows the operator continues its growth momentum: adding 1.3 million subscribers with service revenues up 8% and postpaid churn at 1.1%.
T-Mo gained 817,000 postpaid net additions, of which 786,000 were branded phones. Its service revenues came in at $7.4 billion, up 8% year-overyear; total revenues were up 10% from the same period last year to $10.2 billion. Net income was $581 million, up 158% from the year-ago period.
CEO John Legere called the results “simply outstanding” during a call with analysts and took to Twitter to tout the numbers, which reflected record service revenue and record-low postpaid churn for the company:
Curious about how $TMUS did during Q2? Watch this! Key Info: https://t.co/JUzNKd3d2H pic.twitter.com/hcI4M6RJFT
— John Legere (@JohnLegere) July 19, 2017
“I really have never been more confident about the future of T-Mobile as we look to the second half of 2017 and beyond,” Legere said.
In terms of infrastructure, the carrier said that its 700 MHz deployment is “essentially complete”, covering 271 million potential customers in 575 market areas. It said that it will turn on its first 600 MHz sites in August and that it expects spectrum covering more than 1.2 million square miles to be cleared this year so that it can deploy. The company also added that it has 3,000 new stores planned for this year, with 1,000 T-mobile-branded stores opened to date and another 1,100 MetroPCS stores already open.
The carrier is also seeing growth in its position among enterprise customers. Legere told analysts that T-Mobile US’ business-focused AtWork Group “contributed its highest share of postpaid customers ever. So, we are making great progress towards breaking down the duopoly stranglehold on business customers, too.” He went on to say that more than 40% of Fortune 1000 companies are now T-Mobile US customers — but that its market penetration there and in the public sector are still very low, so it has room to grow particularly as it expands both its geographic retail locations and its network. The rate of growth for T-Mobile US’ AtWork Group is more than twice that of its consumer business, Legere said.
“I think it reflects the opportunity that we have, the acceptance that we now have from businesses — thanks to the big network push,” Legere said.
