Tuesday, April 28, 2015

T-Mobile US Addes 1.8 Million Accounts in 1Q 2015

T-Mobile US reported revenue growth of 13.1 percent in the first quarter of 2015, on the strength of robust net account additions.


T-Mobile US had 1.8 million total net account additions in the quarter, marking two straight years of adding at least a million net new customers every quarter. Still, that was a slowdown from the 2.4 million net adds in the same quarter of 2014.


Some 1.1 million net adds were branded postpaid accounts, one million of those accounts being phone accounts.


At the same time, branded postpaid phone churn was 1.30 percent.


For the full year, T-Mobile US now expects to add a total three million to 3.5 million branded postpaid net adds.


T-Mobile’s branded prepaid net customer additions were 73,000 in the first quarter of 2015. Branded prepaid churn was 4.62 percent in the first quarter of 2015.


For the full-year of 2015, T-Mobile US expects adjusted EBITDA to be in the range of $6.8 to $7.2 billion, unchanged from previous guidance.

T-Mobile revenue rose to $7.8 billion from $6.88 billion a year earlier. But heavy promotions resulted in a first-quarter loss of nine cents per share.

At some point, some of us have noted, T-Mobile US would have to switch from rapid subscriber growth to actual profits. If the rate of subscriber growth continues to fall, then that time is coming.

Sprint might still continue with a focus on subscriber growth rather than profits, but a shift by either, or both firms would signal that the fierce marketing war, driven by those two firms, is about to wane.

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