News
Mobile operator adds 1.9 million customers, net profit dips on higher interest expense.
T-Mobile US on Wednesday reported a 12.8% year-on-year increase in second-quarter revenue thanks to net customer additions of 1.88 million.
Branded postpaid phone customers increased by 646,000 to 30.88 million, while the prepaid base grew by 476,000 to 18.44 million. T-Mobile’s mobile broadband connections climbed by 244,000 to 2.75 million, while its wholesale subscriber base added 515,000, giving it a total of 14.84 million.
That meant that by the end of June, T-Mobile US’s overall customer base stood at 67.38 million, up from 58.91 million a year earlier. It is also the 13th consecutive quarter where T-Mobile’s total net additions have topped the 1 million mark.
The company raised its full-year guidance for branded postpaid subscriber additions to between 3.4 million and 3.8 million, from its earlier outlook of between 3.2 million and 3.6 million.
"Quarter after quarter this team continues to deliver results that are the best in the business despite the competition’s best efforts," said T-Mobile US chief executive John Legere, in a statement.
The continued strong customer growth was reflected in T-Mobile’s financial results.
In the three months to 30 June, the operator generated revenue of US$9.22 billion (€8.38 billion), up from $8.18 billion a year earlier. Service revenue grew 12.1% year-on-year to $6.89 billion, while equipment revenues increased by 14.3% to $2.19 billion.
Operating income swelled to $768 million from $597 million, as revenue growth more than offset higher operating expenses, which reached $8.45 billion, compared to $7.58 billion in the same quarter a year earlier. Adjusted EBITDA grew to $2.46 billion from $1.82 billion.
Net profit fell to $225 million from $361 million on higher interest charges and lower interest income, T-Mobile said. Its Net profit in the year-ago quarter was also boosted by lower income tax expenses.
