T-Mobile U.S. said its Q2 total revenues rose 4% to $10.6 billion — service revenues were up 7% to $7.9 billion, leading the industry for growth the 17th consecutive quarter. Net income was up 35% to $782 million and diluted earnings per share (EPS) came in at $0.92.
“T-Mobile just recorded its best Q2 in company history,” said John Legere, CEO of T-Mobile. “That means 21 quarters with over one million net adds, record-high service revenues, industry-leading postpaid phone net additions, and record-low postpaid phone churn. Our business is strong, our strategy is working and we won’t stop!”
Some highlights:
- Total net customer additions were 1.6 million in Q2 2018, bringing the total customer count to 75.6 million.
- Branded postpaid net customer additions were 1.0 million in Q2 2018, up 200,000 from Q2 2017. Strength in postpaid phone net additions and postpaid other net additions, driven by wearables, drove the year-over-year increase.
- Branded postpaid phone net customer additions were 686,000 in Q2 2018, up 153,000 from Q2 2017. This marks the 18th consecutive quarter in which T-Mobile has led the industry in this category. Sequentially and year-over-year, branded postpaid phone net customer additions increased due to continued growth in existing and Greenfield markets, the growing success of new customer segments such as T-Mobile for Business, T-Mobile ONE Unlimited 55+, and T-Mobile ONE Military, as well as record-low churn.
- Branded postpaid other net customer additions were 331,000 in Q2 2018, up 47,000 from Q2 2017. Year-over-year the increase was due to higher gross customer additions from connected devices, specifically the Apple watch, partially offset by lower DIGITS gross customer additions and higher deactivations from a growing customer base.
- Branded postpaid phone churn was a record-low of 0.95% in Q2 2018, down 15 basis points from Q2 2017, primarily due to increased customer satisfaction and loyalty from ongoing improvements to network quality, industry-leading customer service and the overall value of our offerings in the marketplace.
- Branded prepaid net customer additions were 91,000 in Q2 2018, down 3,000 from Q2 2017.
- Branded prepaid churn was 3.81% in Q2 2018, down 10 basis points compared to Q2 2017.
