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T-Mobile US raises FY subscriber growth target again
2014-10-28 08:46:00| Telecompaper Headlines
(Telecompaper) T-Mobile US has again raised its outlook for customer growth this year, now forecasting branded postpaid net additions of 4.3-4.7 million thanks to a strong last quarter. It previously expected to add 3.0-3.5 million new postpaid users. The operator left its adjusted EBITDA outlook unchanged at USD 5.6-5.8 billion, and said it will report at the "very low end" of the range due to extra costs for the customer growth. In the third quarter, the company added a record 1.397 million postpaid customers under the T-Mobile brand. Including the MetroPCS brand and wholesale, net customer gains reached 2.345 million, for a total base of 52.9 million at the end of September. T-Mobile grew quarterly service revenues 10.6 percent year-on-year to USD 5.684 billion. Equipment sales were up 6.4 percent to USD 1.561 billion, as T-Mobile sold 7.7 million devices in the quarter. ARPU was still under pressure from the switch to Simple Choice plans and extensive promotions in the period. Branded postpaid ARPU fell 5.3 percent year-on-year to USD 49.84, while prepaid ARPU rose 5.3 percent to USD 37.59, driven by MetroPCS. The higher costs for adding more customers led to flat adjusted EBITDA of USD 1.346 billion for Q3. The net loss widened to USD 0.12 per share from USD 0.05 a year ago due to the costs of shutting down the MetroPCS network.
Tags: growth
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Category:Telecommunications