T-Mobile’s growth has been fueled by the performance of its nationwide 4G LTE network, which now covers over 300 million Americans and continues to be the fastest in the nation. Postpaid customers, those who pay at the end of each month, typically spend more and are more lucrative than prepaid customers. According to T-Mobile it added 2.3 million total wireless customers during the third quarter. T-Mobile has successfully delivered over a million total net customer additions for the past 10 quarters and more than 2 million in five of the past seven quarters.
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The company also reported 242,000 mobile broadband net customer additions in the quarter.
T-Mobile, led by self-styled rebel and Chief Executive Officer John Legere, bills itself as the “un-carrier” and uses low-priced plans along with phone leasing and rollover data allotments to draw customers from larger rivals Verizon Communications Inc. and AT&T Inc.
In prepaid, the company added 595,000 total customers in the third quarter, compared to 178,000 in the second quarter and 411,000 in the third quarter of 2014.
It added that its prepaid business had been even stronger, with triple the number of new customers as it had seen in the prior quarter.
T-Mobile today shared its Q3 2015 numbers, and once again the magenta carrier has added customers. That compared to consensus estimates from Thomson Reuters of $0.30 in EPS on $8.29 billion in revenue. Operating expenses were flat year-on-year at $7.3 billion, resulting in an operating profit of $513 million.
For the full-year of 2015, T-Mobile expects Adjusted EBITDA to be in the range of $6.8 to $7.2 billion, unchanged from previous guidance despite the increase in branded postpaid net customer additions guidance. T-Mobile’s total revenues for Q3 2015 finished at $7.8 billion, up from $7.3 billion in Q3 2014. T-Mobile expects EPS to continue to be positive for the fourth quarter and the full-year 2015.
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T-Mobile owns 700 MHz A Block spectrum covering 190 POPs, or approximately 60 percent of the USA population and more than 70 percent of the company’s existing customer base. There’s also T-Mobile Extended Range LTE – which offers better reach and building penetration – in 204 markets. New market launches in the third quarter of 2015 included the cities of Los Angeles, Atlanta, Sacramento, Cincinnati and Indianapolis. Average monthly revenue per user was $47.99, down from $48.19 in the prior quarter and $49.84 from a year earlier. The year-over-year improvement reflects ongoing improvements in the company’s network, customer service and the overall value of its offerings, T-Mobile said, while the sequential increase in churn was primarily due to seasonal factors. The shares closed down 0.48 points or 1.18% at $40.22 with 4,072,688 shares getting traded.
