T-Mobile US Q3 Profit Tops Estimates; Total Revenues Up 2%

(RTTNews) - T-Mobile US, Inc. (TMUS) reported third-quarter earnings per share of $1.01, up 9 percent from a year ago. On average, 19 analysts polled by Thomson Reuters expected the company to report profit per share of $0.96, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA rose 5 percent to $3.4 billion.

Third-quarter total revenues were $11.06 billion, up 2 percent from prior year. Analysts expected revenue of $11.33 billion for the quarter. The increase in total revenues were driven by growth in service revenues, partially offset by a decrease in equipment revenues primarily due to a decrease in the number of devices sold. Service revenues were $8.58 billion, up 6 percent with Branded postpaid revenues rising 10 percent.

Total net customer additions were 1.7 million in third quarter of 2019, up 117,000 from prior year, resulting in total customer count to 84.2 million. Branded postpaid net customer additions were 1.1 million, down 5,000 from prior year. The company recorded record low third-quarter branded postpaid phone churn of 0.89 percent, down 13 bps from last year.

For 2019, T-Mobile US projects postpaid net customer additions between 4.1 and 4.3 million, up from prior guidance of 3.5 to 4.0 million. Adjusted EBITDA is expected to be in the range of $13.1 to $13.3 billion, increasing the midpoint from the prior guidance range of $12.9 to $13.3 billion.

John Legere, CEO of T-Mobile, said: "Our team has been hard at work deploying 600 MHz spectrum and we have accelerated our plans to launch a foundational layer of 5G nationwide later this year."