T-Mobile adds 2.1 mln customers, nearly trebles profit in Q4

Nieuws Mobiel Verenigde Staten 17 FEB 2016
T-Mobile adds 2.1 mln customers, nearly trebles profit in Q4
T-Mobile US added 2.1 million net customers in Q4 2015, bringing its total customer count to over 63 million. This was the eleventh consecutive quarter that the mobile carrier generated more than 1 million net customer additions and the third consecutive quarter with more than 2 million net customer additions. T-Mobile said the total included 1.3 million branded postpaid customers, 469,000 branded prepaid customers and 301,000 wholesale customers. Branded postpaid ARPU was stable at USD 48.05 a month and churn stood at 1.46 percent, down by 27 basis points on Q4 2014. Branded prepaid churn was 4.2 percent, compared to 5.39 percent a year earlier. 

T-Mobile posted USD 8.25 billion of revenue in Q4 2015, up 1.1 percent on Q4 2014, with service revenue up 11.7 percent and 10.8 million devices sold or leased, including 10 million smartphones. The company notes that its revenue growth was impacted by lower equipment revenue, down 29.5 percent mainly due to the mix shift to its Jump! On Demand leasing service, whose revenue is recognised over the lease term rather than when a device is delivered to the customer. 

T-Mobile improved its adjusted EBITDA by 30.2 percent to USD 2.3 billion, primarily due to higher service revenues from a growing customer base, synergies with MetroPCS, cost controls and decreased losses on equipment sales with the shift to Jump. These factors were partially offset by higher selling, general and administrative expenses, also resulting from customer growth. T-Mobile’s adjusted EBITDA margin increased to 35 percent in Q4 2015, versus 30 percent in the year-earlier quarter. Adjusted EBITDA also benefited from a USD 139 million gain related to a spectrum licence transaction. 

The operator increased its net profit to USD 297 million (USD 0.34 EPS) in its latest quarter, versus USD 138 million (USD 0.15) in Q3 2015 and USD 101 million (USD 0.12) in Q4 2014. 

For 2016, the company expects to deliver strong growth in customer additions, adjusted EBITDA and free cash flow. It aims to attract 2.4-3.4 million branded postpaid net customers in the full year. T-Mobile also anticipates that its adjusted EBITDA will be in the USD 9.1 billion to USD 9.7 billion range, including a USD 700 million to USD 1 billion impact from leasing and Data Stash. Capex is projected to be in the USD 4.5 billion to 4.8 billion range.

Categories:

Mobiel

Companies:

MetroPCS,  T-Mobile US

Countries:

Verenigde Staten

Tags:

Voice services, Data services, Messaging, Sales figures, Financial figures, Wireless

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