Operator raises customer growth outlook as revenue jumps 10%.
T-Mobile US late Wednesday announced it more than doubled its second quarter net profit, as it shook off increased competition from its rivals, adding 1.3 million new customers.
It marks the 17th consecutive quarter that T-Mobile has added more than 1 million new customers.
The self-styled Uncarrier’s rivals have attempted to pile on the pressure: Verizon launched a new unlimited price plan in February, AT&T followed that by extending its unlimited tariff to more customers, while Sprint offered eligible customers 12 months of free unlimited service.
All that effort would appear to be in vain, judging by T-Mobile’s latest results.
Branded postpaid customers increased by 817,000 during the three months to 30 June, 786,000 of which were phone customers. Branded prepaid customers grew by 94,000, while T-Mobile’s wholesale base grew by 422,000.
In total, T-Mobile ended the quarter with 69.56 million customers, up from 67.38 million in the corresponding quarter 12 months ago.
The operator also raised its full year guidance for branded postpaid customer additions to 3 million-3.6 million from 2.8 million-3.5 million.
It was another strong quarter financially too.
T-Mobile’s quarterly revenue surged to $10.2 billion (€8.86 billion) from $9.29 billion a year ago. Service revenue increased to $7.45 billion from $6.89 billion, while equipment revenue was up to $2.51 billion from $2.19 billion.
That drove operating income up 69.99% year-on-year to $1.42 billion, while net income rocketed to $581 million from $225 million in Q2 2016.
"On top of that, our network just keeps getting better and faster while the Duopoly’s (AT&T and Verizon) networks seem to be choking after we forced them to go unlimited," said T-Mobile CEO John Legere. "Make no mistake about it, the Un-carrier will not stop forcing change in this industry and our Q2 results are more proof that consumers are responding."
T-Mobile US CTO Neville Ray will discuss the operator’s plans for a nationwide 5G network at Total Telecom Congress, taking place in London on 31 October-1 November. Click here to find out more about this event.