T-Mobile 3Q17 earnings continue a great streak, hint at weakness
Sprint and T-Mobile are reporting merging soon. But the Un-carrier wanted all eyes on CEO John Legere as he announced the continuation of many quarters’ progress.
The third fiscal quarter of 2017 marked the 18th in a row for more than 1 million net customer additions and the 15th consecutive quarter with T-Mobile leading the industry in branded postpaid phone customers netted.
It grossed $9.95 billion, up 7.5 percent from 2016, and reported net income of $550 million, a 64 percent surge. The hurricanes that affected Florida, Puerto Rico and Texas had a bottom line negative impact of 14 percent, pre-insurance.
It was able to nab 817,000 postpaid customers with 595,000 of them in-brand and 226,000 prepaid customers through MetroPCS — total customer additions tallied to 1.33 million and took T-Mobile’s portfolio to 70.7 million subscribers.
Service revenues are growing at the company with the latest report at $7.63 billion, but the rate of growth has steadily fallen for at least the past year.
T-Mobile has constantly underperformed in customer additions from last year, even working in downward adjustments to its Lifeline service:
|Total customer additions (in millions)||Q1||Q2||Q3||Q4|
The company is in a search for new customers as it is well on its way to expanding its retail footprint by 3,000 stores with 2,500 already built. The combined group is now serving 500 cities and towns, mostly in rural areas, it previously hadn’t.
It is revising guidance up for the end of the year with top estimates of 3.6 annual million customer adds and $11 billion in adjusted EBITDA.