T-Mobile outpaces the industry again!
How does T-Mobile continue to do it? Quarter after quarter the nation's second-largest carrier leads the industry in postpaid phone net additions which many consider to be the most important metric for a wireless provider. For the second quarter, T-Mobile added 760,000 net new postpaid phone customers which not only led the industry once more but also was the best second quarter for the company in eight years. Postpaid phone churn was a record low .77% and led the industry for the first time ever.
Postpaid net customer additions topped the industry at 1.6 million and postpaid net account additions added up to 299,000. Guess what. Both of those results were also the best in the industry. Mike Sievert has done quite an admirable job since taking over the CEO position from John Legere. While that was certainly a hard act to follow, Sievert, like Apple CEO Tim Cook, has carved out a legacy of his own.
Speaking of Mike, this is what he had to say about Thursday's report, "If you were wondering how T-Mobile would perform if growth in our category moderated, I think you’ll find the answer in our latest results —including our best Q2 postpaid phone net adds in eight years, the lowest postpaid phone churn in the industry for the first time ever, and industry-leading financial growth."
The executive added, "We’ve set audacious goals and delivered a durable and differentiated plan that is working just as we said it would. And now, fueled by our unique growth opportunities, the momentum of our latest Un-carrier moves, and an unquenchable desire to be the very best at delivering for customers, we are the one to watch — with no plans to slow down."
T-Mobile CEO Mike Sievert
Continuing with the data, prepaid net additions came to 124,000 down from the 146,000 it added during the same quarter last year. Prepaid churn was 2.62% which is typical since prepaid customers aren't tied down to a contract. The total number of customers with T-Mobile at the end of the quarter was 116.6 million up 1.7 million from Q1's 114.9 million but down 117,000 year-over-year.
Revenue for the quarter came to $19.2 billion, down from last year's Q2 gross of $19.7 billion. Net income amounted to $2.2 billion compared to the $108 million loss the company reported during Q2 of 2022. Earnings per share came to $1.86 vs. a 9-cent a share loss during the second quarter of last year.
Wall Street didn't take too kindly to the numbers. During a down day on the Street, T-Mobile's shares declined $1.21 or .86% to $139.88. After the report was released in after-hours trading, the shares dropped an additional $2.66 or 1.9% to $137.22. The stock is still closer to its 52-week high of $154.38 than its 52-week low of $124.92.
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