T-Mobile US reported Q2 service revenues of $15.7 billion, up 3% year-over-year, and Postpaid service revenues of $12.1 billion, up 5% year-over-year. Net income was $2.2 billion and diluted earnings per share was $1.86 , up $1.95 year-over-year.
In addition, the company raised its guidance for Core Adjusted EBITDA, which is now expected to be between $28.9 billion and $29.2 billion, an increase from prior guidance of $28.8 billion to $29.2 billion.
“If you were wondering how T-Mobile would perform if growth in our category moderated, I think you’ll find the answer in our latest results — including our best Q2 postpaid phone net adds in eight years, the lowest postpaid phone churn in the industry for the first-time ever, and industry-leading financial growth,” said Mike Sievert, CEO of T-Mobile. “We’ve set audacious goals and delivered a durable and differentiated plan that is working just as we said it would. And now, fueled by our unique growth opportunities, the momentum of our latest Un-carrier moves, and an unquenchable desire to be the very best at delivering for customers, we are the one to watch — with no plans to slow down.”
Some highlights:
- Postpaid net account additions of 299 thousand decreased 81 thousand year-over-year, reflecting continued industry-leading share of net account additions in an environment of moderating industry growth and fewer High Speed Internet only net account additions.
- Postpaid net customer additions of 1.6 million decreased 95 thousand year-over-year.
- Postpaid phone net customer additions of 760 thousand increased 37 thousand year-over-year, driven by an increase in postpaid phone gross additions and churn improvement. Postpaid phone churn of 0.77% improved 3 bps year-over-year.
- Prepaid net customer additions of 124 thousand decreased 22 thousand year-over-year, and Prepaid churn was 2.62%.
- High Speed Internet net customer additions of 509 thousand decreased 51 thousand year-over-year. T-Mobile ended the quarter with 3.7 million High Speed Internet customers.
- Total net customer additions of 1.7 million decreased 117 thousand year-over-year. The total customer count increased to a record high of 116.6 million.