T-Mobile (TMUS) Tops Q2 EPS by 5c

T-Mobile (NASDAQ: TMUS) reported Q2 EPS of $0.25, $0.05 better than the analyst estimate of $0.20. Revenue for the quarter came in at $9.2 billion versus the consensus estimate of $9.03 billion.

• Customer momentum continues for the fastest growing wireless company in America:
  • 1.9 million total net adds - 13th consecutive quarter of over 1 million
  • 890,000 branded postpaid net adds
  • 646,000 branded postpaid phone net adds - led industry in branded postpaid phone net adds for the 10th consecutive quarter
  • 476,000 branded prepaid net adds - up 167% YoY due to strong growth from MetroPCS
  • Record-low branded postpaid phone churn of 1.27% - down 6 bps QoQ and 5 bps YoY
• Customer growth translating into industry-leading financial growth:
  • $6.9 billion service revenues, up 12.1% YoY
    • T-Mobile led industry in YoY service revenue percentage growth for 9th consecutive quarter
  • $9.2 billion total revenues, up 12.8% YoY
    • T-Mobile led industry in YoY total revenue percentage growth for 12th time in past 13 quarters
  • Net income of $225 million and earnings per share of $0.25
  • $2.5 billion Adjusted EBITDA, up 35.6% YoY
    • 36% Adjusted EBITDA margin, up from 30% in the second quarter of 2015
  • Branded postpaid phone ARPU of $47.11, up 1.9% QoQ and generally stable adjusting for Data Stash
• Continued improvements in America’s fastest and fastest growing 4G LTE network:
  • Fastest 4G LTE network in the US - leading in average download speeds for 10th consecutive quarter
  • 311 million POPs covered with 4G LTE
  • “Extended Range LTE” covers more than 200 million POPs across 350 market areas
• T-Mobile again ranked highest in Total Ownership Experience by J.D. Power
• Raising customer outlook and narrowing Adjusted EBITDA target for 2016:
• Guidance range for branded postpaid net adds increased to 3.4 to 3.8 million from 3.2 to 3.6 million
  • Narrowing Adjusted EBITDA target to $9.8 to $10.1 billion from $9.7 to $10.2 billion
  • Guidance includes aggregate impact of leasing and Data Stash now expected to be $0.8 to $1.0 billion, and the $0.6 billion spectrum gain in the first quarter of 2016
• Maintaining guidance of $4.5 to $4.8 billion of cash capital expenditures

For earnings history and earnings-related data on T-Mobile (TMUS) click here.

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