T-Mobile (NASDAQ: TMUS) reported Q2 EPS of $0.92, $0.05 better than the analyst estimate of $0.87. Revenue for the quarter came in at $10.571 billion versus the consensus estimate of $10.66 billion.

Industry-Leading Customer Growth

• 1.6 million total net additions – 21st consecutive quarter with more than 1 million net additions
• 1.0 million total branded postpaid net additions – supported by continued strong postpaid other net additions
• 686,000 branded postpaid phone net additions – led industry for the 18th consecutive quarter
• 91,000 branded prepaid net additions – flat year-over-year despite increased competitive activity in the market
• Record low 0.95% branded postpaid phone churn, down 15 bps year-over-year

Strong Financial Performance (all percentages year-over-year)

• Service revenues up 7% to $7.9 billion - led industry for the 17th consecutive quarter
• Total revenues up 4% to $10.6 billion
• Net income up 35% to $782 million and diluted earnings per share (EPS) of $0.92
• Adjusted EBITDA(1) up 7% to $3.2 billion
• Net cash provided by operating activities(3) up 14% to $1.3 billion
• Free Cash Flow(1)(3) up 61% to $774 million

Network Expansion Continues, Garners Industry Accolades

• T-Mobile now covers 323 million people with 4G LTE - targeting 325 million people by year-end 2018
• Aggressive deployment of 600 MHz in Q2 2018, augmenting existing low-band capabilities on 700 MHz
• Fastest LTE network according to Ookla; outright winner in 5 of 7 categories in most recent OpenSignal study

Continued Strong Outlook for 2018

• Increased target for branded postpaid net customer additions of 3.0 to 3.6 million
• Net income is not available on a forward-looking basis(2)
• Increased Adjusted EBITDA target of $11.5 to $11.9 billion including leasing revenues of $0.6 to $0.7 billion(1)
• Cash purchases of property and equipment, excluding capitalized interest, of $4.9 to $5.3 billion, unchanged from the prior target range, now expected to come in at the high end of the range. This includes expenditures for 5G deployment
• Three-year compound annual growth rates (CAGRs) for Net cash provided by operating activities and Free Cash Flow from FY 2016 to FY 2019 also unchanged at 7% - 12% and 46% - 48%, respectively(1)(3)

“T-Mobile just recorded its best Q2 in company history,” said John Legere, CEO of T-Mobile. “That means 21 quarters with over one million net adds, record-high service revenues, industry-leading postpaid phone net additions, and record-low postpaid phone churn. Our business is strong, our strategy is working and we won’t stop!”

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