Home News T-Mobile Reports Another Blow Out In Second Quarter

T-Mobile Reports Another Blow Out In Second Quarter

T-Mobile is still the fastest growing of the four major wireless providers in the US. We recently informed you that AT&T has added 72,000 net postpaid customers in the second quarter. We report this to put T-Mobile’s second-quarter profit at 710,000 net additions of post-paid phones into context. The figure represents an increase of 3% on an annual basis and the airline claims that this is expected to be the best growth in the industry for the three-month period. Overall, the net post-paid additions of the brand were 1.1 million, an increase of 9% per year. The net prepaid additions showed strong growth, increasing by 44% to 131,000 net additions. In the T-Mobile period it recorded 1.8 million total net additions, 11% more than in the same quarter of the previous year at 78%, the turnover of branded postpaid phones has dropped from 0.95% last year. This is a historical record for T-Mobile in this category.

T-Mobile generated $11 billion in revenue for the second quarter, an increase of 4% on an annual basis. Net income rose 20% to $939 million, producing diluted earnings per share of $1.09. These were all the records of every second quarter in the history of T-Mobile. The company claims to be launching the first national 5G network in the country. The other day we inform you that you have worked with Qualcomm and Ericsson to successfully complete a data call on the 600 MHz spectrum of the operator’s low bandwidth. At the moment, T-Mobile covers 99% of the US with 4G LTE.

T-Mobile Has Quadrupled The Ownership Of The mmW Spectrum


While T-Mobile tests its 600MHz low-frequency waves for 5G, it currently offers 4G LTE in that spectrum to 156 million Americans. This is important because the low-frequency spectrum travels farther and penetrates buildings better than the high-frequency spectrum. During the quarter, T-Mobile introduced the 5W mmW service in six cities, including Atlanta, Cleveland, Dallas, Las Vegas, Los Angeles, and New York. The operator has recently acquired enough mmWave spectrum during an FCC auction to quadruple the amount of these airwaves owned by the company.

“The T-Mobile team of rock stars delivers quarter, after quarter, after quarter! Record-low customer churn and our best Q2 customer numbers in years. This is in addition to record service revenue, record Q2 net income, and record Adjusted EBITDA. We continue to build out our nationwide 5G network with an aggressive deployment of 600 MHz on 5G equipment and increase our spectrum portfolio through an incredibly successful FCC auction – investing $842 million which more than quadruples our mmWave holdings. Our momentum continues and we won’t stop!”- John Legere, CEO, T-Mobile

After this solid quarter, T-Mobile now expects net post-paid additions in the range between 3.5 and 4 million for the whole of 2019. This estimate is higher than the previous range of 3.1 million and 3.7 million. Today, T-Mobile shares closed at $80 for a profit of 9 cents. But the stock price is driven these days by what is happening with the merger proposed by the company with Sprint. At any time, we expect an agreement to be announced between T-Mobile, Sprint and Dish Network. To appease the Justice Department, Apparently, Dish will create a new wireless operator by spending $1.5 billion to buy Boost Mobile and $3.5 billion to buy spectrum. Dish should enter into a seven-year MVNO agreement with T-Mobile while developing its national 5G network. Under the terms of the transaction, Dish is not authorized to modify these goods or deliver the MVNO agreement to third parties for three years.

When the original merger agreement between T-Mobile and Sprint expired on April 28th, both companies signed an extension. But the extension expires July 29 and it seems that another one will be requested.

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