The full number of net additions went to 1.579 million, taking the total to 75.619 million at the end of June. The figure includes 686,000 branded postpaid phone customers, and 331,000 postpaid other devices such as wearables. The number of branded prepaid net additions was flat year-on-year at 91,000 due to sharp competition. Postpaid phone churn meanwhile went to a low of 0.95 percent from 1.07 percent the year earlier, while prepaid churn slipped to 3.81 percent from 3.94.
Postpaid phone ARPU went 1.2 percent lower to USD 46.52, pulled down by more people adopting tax inclusive plans, plus a decrease in the non-cash net benefit from Data Stash, partially offset by the positive impact from T-Mobile One rate plans and less service promotional activities. For 2018, T-Mobile US continues to see a generally stable ARPU against the year before, excluding the impact from the new accounting practices. Prepaid ARPU declined 0.4 percent to USD 38.48 on the back of promotional activities.
Revenues advanced 4 percent from the year before to USD 10.6 billion, with service revenues going 7 percent higher to USD 7.9 billion and the adjusted EBITDA climbed 7 percent to USD 3.2 billion after one-time tax gains of USD 84 million and hurricane related reimbursements of USD 70 million. The net profit advanced 35 percent to USD 782 million or USD 0.92 per share, benefitting from the tax gains and hurricane payback. Operating cash flow increased 14 percent to USD 1.3 billion. Cash purchases of property and equipment increased by 21 percent to USD 1.6 billion, mainly from the continued deployment of low band spectrum.
The operator said it now covers 323 million people with LTE and again reiterated its target to reach 325 million people by year-end. It added that was busy deploying 600 MHz band in the quarter, and that augmented existing low-band capabilities on 700 Mhz.
For the full year, the company now expects the adjusted EBITDA at USD 11.5-11.9 billion, from its previous estimate of 11.4-11.8 and February forecast of 11.3-11.7 billion. Including the estimated impact of the new revenue accounting standard, adjusted EBITDA is still expected to increase by an additional USD 0.2-0.5 billion for a total guidance range now of USD 11.7-12.4 billion, from the previous forecast of 11.6-12.3 billion. The capex budget is unchanged at USD 4.9-5.3 billion, including spending on 5G.
