T-Mobile reported quarterly earnings and revenue that beat analysts’ expectations on Tuesday. Shares edged up close to 1 percent after the announcement.
Here’s how the company did compared with what Wall Street expected:
- Earnings: 78 cents per share vs. 71 cents per share forecast by Thomson Reuters
- Revenue: $10.46 billion vs. $10.35 billion forecast by Thomson Reuters
- Net adds: 1.4 million vs. 1.27 million, forecast by StreetAccount
Revenue grew by 8.8 percent year-over year, while earnings fell by about 2.5 percent.
T-Mobile’s first quarter report marked its fifth year and 20th consecutive quarter netting more than 1 million customers.
The telecom company also marked record low churn, or customer turnover, which COO Mike Sievert on a call with investors attributed in part to the fact that “there are less switchers in the market.” T-Mobile reported 1.07 percent branded postpaid phone churn, down 11 basis points from the 1.18 percent churn reported in the year-ago quarter. The results surpassed the street’s expectations of 1.16 percent churn.
Despite the uptick in customer retention and net adds, T-Mobile reported a 1.8 percent drop in average revenue per user on branded postpaid phones. In the first quarter of 2018, T-Mobile reported revenue of $46.66 per user, compared with $47.53 in the year-ago quarter.
T-Mobile strengthened its 2018 outlook, raising the target for branded postpaid net customer additions to between 2.6 and 3.3 million, up from 2 to 3 million. The company also increased full-year EBITDA to between $11.4 and $11.8 billion, surpassing street estimates of $11.3 to 11.7 billion, according to StreetAccount.
T-Mobile had previously struggled to keep up with the two largest wireless companies, Verizon and AT&T, but the merger with Sprint promises to boost T-Mobile’s odds in the race for customers and technological innovation. The new company is touting the ability to create thousands of U.S. jobs and a large-scale 5G network that could compete with China in the near-term.
The agreement still faces regulatory scrutiny from the Trump administration, which has taken a hard line on telecom mergers.
After a day of talking to regulators in Washington D.C., T-Mobile CEO John Legere said on a call with investors that he is “highly confident about the transaction.”
Correction: A previous version of this story misstated the revenue forecast by Thomson Reuters.
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