T-Mobile reported quarterly earnings as well as revenue in which beat analysts’ expectations on Tuesday. Shares edged up close to 1 percent after the announcement.
Here’s how the company did compared with what Wall Street expected:
- Earnings: 78 cents per share vs. 71 cents per share forecast by Thomson Reuters
- Revenue: $10.46 billion vs. $10.35 billion forecast by Thomson Reuters
- Net adds: 1.4 million vs. 1.27 million, forecast by StreetAccount
Revenue grew by 8.8 percent year-over year, while earnings fell by about 2.5 percent.
T-Mobile’s first quarter report marked its fifth year as well as 20th consecutive quarter netting more than 1 million customers.
The telecom company also marked record low churn, or customer turnover, which COO Mike Sievert on a call with investors attributed in part to the fact in which “there are less switchers inside the market.” T-Mobile reported 1.07 percent branded postpaid phone churn, down 11 basis points coming from the 1.18 percent churn reported inside the year-ago quarter. The results surpassed the street’s expectations of 1.16 percent churn.
Despite the uptick in customer retention as well as net adds, T-Mobile reported a 1.8 percent drop in average revenue per user on branded postpaid phones. inside the first quarter of 2018, T-Mobile reported revenue of $46.66 per user, compared with $47.53 inside the year-ago quarter.
T-Mobile strengthened its 2018 outlook, raising the target for branded postpaid net customer additions to between 2.6 as well as 3.3 million, up coming from 2 to 3 million. The company also increased full-year EBITDA to between $11.4 as well as $11.8 billion, surpassing street estimates of $11.3 to 11.7 billion, according to StreetAccount.
On Sunday, the company announced a blockbuster merger agreement with rival Sprint. The fresh combined company will boast more than 100 million subscribers as well as a value of $146 billion.
T-Mobile had previously struggled to keep up with the two largest wireless companies, Verizon as well as AT&T, nevertheless the merger with Sprint promises to boost T-Mobile’s odds inside the race for customers as well as technological innovation. The fresh company will be touting the ability to create thousands of U.S. jobs as well as a large-scale 5G network in which could compete with China inside the near-term.
The agreement still faces regulatory scrutiny coming from the Trump administration, which has taken a hard line on telecom mergers.
After a day of talking to regulators in Washington D.C., T-Mobile CEO John Legere said on a call with investors in which he will be “highly confident about the transaction.”
Earlier This particular year, President Donald Trump scuppered Broadcom’s attempt to buy mobile chip maker Qualcomm, as well as the Department of Justice will be suing to stop AT&T’s proposed acquisition of Time Warner.
Correction: A previous type of This particular story misstated the revenue forecast by Thomson Reuters.
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