T-Mobile US again raised its outlook for annual EBITDA and subscriber growth after reporting a record third quarter. The mobile operator now expects adjusted EBITDA for the full year of USD 10.8-11.0 billion, from its previous estimate of 10.5-10.9 billion and earlier one of 10.4-10.8 billion. It also expects to add 3.3-3.6 million branded postpaid net additions, up from its previous forecast of 3.0-3.6 million and an earlier outlook of 2.8-3.5 million.
In Q3, the operator added 1.3 million net new customers, including 595,000 branded postpaid phone net customer additions and 226,000 branded prepay, pushed by the success of MetroPCS. The total base reached 70.731 million customers. This excludes just under 4.4 million wholesale customers under the Lifeline programme, which T-Mobile said has become uneconomical due to regulatory changes.
Branded postpaid net additions reached 817,000 in Q3, which the company said accounted for all the industry's growth in the period. Postpaid phone churn fell 9 basis points from the year before to 1.23 percent, while ARPU was off 2.5 percent year-on-year at USD 46.93.
Service revenues advanced 7 percent to a record USD 7.6 billion, while total revenues rose 8 percent to USD 10.0 billion. The negative impact from hurricanes amounted to USD 39 million in the quarter. Adjusted EBITDA lifted 5 percent to USD 2.8 billion, as the net profit jumped 50 percent to USD 550 million. Net cash from operating activities reached a record 2.4 billion, up 36 percent, with the record free cash flow going 59 percent higher to USD 921 million.
The company confirmed the roll-out of 600 MHz spectrum had started and that over 1.2 million square miles will be clear this year. About 3,000 new stores are also planned for this year, with 1,200 new T-Mobile and 1,300 net new MetroPCS stores opened year-to-date.
