T-Mobile US has again increased its target for full-year customer growth, after adding 1.9 million new customers in Q2 for a total of over 67 million. Postpaid growth under the T-Mobile brand reached 890,000 new customers in the quarter, and T-Mobile raised the full-year target for this category to 3.4-3.8 million from 3.2-3.6 million previously. Of the new customers, 646,000 were branded phone postpaid users, for which churn fell to 1.27 percent, and T-Mobile also gained 476,000 prepaid users.
The customer growth helped drive a 12.1 percent annual increase in service revenue to USD 6.9 billion, and total revenues rose 12.8 percent to USD 9.2 billion. Average revenue per branded postpaid phone user totaled USD 47.11, up 1.9 percent sequentially and down 2.2 percent year-over-year, due mainly to the impact of adding data rollover. T-Mobile's adjusted EBITDA increased 35.6 percent year-on-year to USD 2.5 billion, and the EBITDA margin rose to 36 percent from 30 a year ago.
T-Mobile narrowed its guidance for annual adjusted EBITDA to USD 9.8-10.1 billion from a previous range of USD 9.7-10.2 billion, including an impact of USD 0.8-1.0 billion from the impact of handset leasing and data rollover and a USD 0.6 billion spectrum gain in the first quarter. After spending USD 2.6 billion in the first half of the year, the operator maintained its outlook for full-year cash capex of USD 4.5-4.8 billion.
