T-Mobile US raises outlook again after solid Q2

T-Mobile US raised its outlook for annual EBITDA and subscriber growth after reporting another quarter of strong results. The mobile operator now expects adjusted EBITDA of USD 10.5-10.9 billion in 2017, up from a previous estimate of USD 10.4-10.8 billion, and to add 3.0-3.6 million postpaid subscribers, more than the earlier outlook of 2.8-3.5 million. 

In the second quarter, the company added 1.3 million net new customers, of which 817,000 postpaid, for a total base of 69.562 million. This excludes some 4.4 million wholesale customers under the Lifeline programme, which T-Mobile said has become "uneconomical" due to regulatory changes.

Postpaid phone additions reached 786,000 in Q2, which the company said accounted for all the industry's growth in the period. Postpaid phone churn fell to 1.10 percent, down 17 basis points year-on-year and 8 points less than in Q1, while ARPU was flat year-on-year, at USD 47.01, in line with the company's full-year outlook.

T-Mobile's service revenues were up 8 percent to a record USD 7.4 billion, and total revenues rose 10 percent to USD 10.2 billion. Adjusted EBITDA rose 19 percent to USD 3.0 billion, and net profit more than doubled to USD 581 million from USD 225 million a year ago. 

T-Mobile spent USD 1.3 billion cash on capex in the quarter and maintained its full-year budget at USD USD 4.8-5.1 billion. The company confirmed the roll-out of 600 MHz spectrum had started and the first sites should go live in August.