T-Mobile's first 2016 quarterly results show the 'Un-carrier' strategy paying off big time

T-Mobile's first 2016 quarterly results show the 'Un-carrier' strategy paying off big time

Oh, T-Mobile, if the ultimate judge of the success of your "Un-carrier" business model is an increase in subscriptions, you nailed it. If it's vastly improved financial results - you scored that, too.

T-Mobile just sent us its Q1 quarterly earnings, and they sound pretty upbeat, with a good reason. The carrier added 2.2 million total net subscribers, which is their 12th quarter in a row of 1+ million net adds. While the company captured most of the mobile industry's postpaid growth for the umpteenth time, the biggest movers and shakers were in prepaid. We recently made comparison between the prepaid offerings of the major US carriers and their best MVNO sidekicks, and T-Mobile was certainly with some of the best plans there. This translated into 807,000 branded prepaid net subscribers – a record for T-Mobile, and a whopping eleven-fold increase year-on-year.

As for the financial part of the equation, all this rapid growth doesn't come cheapr, and yet T-Mobile scored $8.6 billion total revenue, up 10% fro the previous year, with $2.7 billion of earnings before taxes, depreciation and amortization. The all-important net income figure is also quite decent, considering the disruptive model that T-Mobile introduced - $479 million - which comes to show that you can be nice to your user's wallets, and still cash in nicely in the end.



source: T-Mobile (PDF)

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16 Comments

1. TreyTreyTaylor

Posts: 725; Member since: Dec 21, 2010

I love T-Mobile, and I'm sticking with them for 3 solid reasons. 1 I HATE AT&T with a emblazoned passion. 2 they let jump to any flagship phone twice in the year at no additional cost. 3. They're the only ones in the country that offers a TRULY unlimited prepaid option. $95 is pretty steep I won't lie. But it's an option. A possibility. Meanwhile everyone else won't even let you get that far. Caps, throttling, etc.

2. TmoRep

Posts: 107; Member since: Apr 20, 2016

Thanks for the support!

6. TechieXP1969

Posts: 14967; Member since: Sep 25, 2013

Actually you can jump 3 times in the same 12 months. I did. For me I can't say I love T-Mobile, what I will say is I got a great deal compared to VZW. I still have a line with VZW, but it is based on some past issues in which I have a free line basically for life. The only thing I pay for is the hardware. But thast another story. But I moved 4 other lines to T-Mobile for $150 and each lien come with 10GB vs sharing that same 10GB with 5 lines on VZW. I rarely use data, less than 500MB most times because I'm almost always on WiFi and my phone is set to get on any Xfinity-Wifi when in range. The only downside is where I live service is very congested and I started gettign way to many dropped calls and almost no data. So I have a T-Mo cellspot which is so fast, I get Comcast-like speeds. Now I have 6 lines, for less than what 4 cost me with VZW. And that includes the fact 4 of the 6 lines are on payment plans. A T-Mo rep has been calling me to try to move all my business phones over. We buy phones for our Project Managers. I told the rep I did consider it, but the issue is, we do have people who constantly travel and I cant have them not have service. I had already moved all those lines from VZW Business to ATT just a few years ago and we've had no issues. But the cost is ridiculous! ATT and VZW are greedy and I can't stand them, especially AT&T. I've been with VZW since 1996 and watch their service go from bad, to worse and then to best. But in Chicago, I don't need ATT...T-mobile service works. The fact I can enjoy media consumption on the go, without even using my data is awesome. I liek the fact I can pay extra towards a phone at anytime, unlike VZW which doesn't allow. You either must stick with the monthly payment, or pay it off. The other people on my account, can't pay off their phones, that is why they are on a monthly plan. But I should be able to pay extra. So far I have gotten equal customer service from T as I did with VZW, so no complaints. But they have way to many network issues and I even considered moving my line back to VZW. T-Mobile has got to fix the SMS issues. Sending a text and having ti take hours to reach the recipient,; is terrible.

9. TmoRep

Posts: 107; Member since: Apr 20, 2016

Techie, we do have our 6 gbs for 4 lines at 120 a month currently if you're not using your 10 gbs you could save some extra money! Base promo 6 gbs plan is 2 lines for $80 with a $20 add A line Fee.

3. Crispin_Gatieza

Posts: 3052; Member since: Jan 23, 2014

I switched to T-Mo a year ago for their family plan. While I don't reap the benefits of Binge On, it's nice to know it's there. My bills are always the same from month-to-month and that's a welcome change from Ma Bell's wicked ways. Yes, the reception is spotty in some areas but with Band 12 adoption, it's a lot better. Sprint is a four-letter word in my house and even though I can afford Verizon, why would I want to?

4. Techist

Posts: 311; Member since: Jan 27, 2015

Switched to T-Mobile in January 2014 and have never looked back. Despite everyone saying their coverage is an issue, it's been good enough for me. In fact, since I switched it has improved: I used to lose signal in the large building I work in (which is over 30 miles from the nearest city), but from about 6 months ago I have coverage even inside the building. And no one else comes close to matching their international coverage, which is one of the major reasons I switched since I travel internationally 3-4 times a year. When you factor in music freedom, no contracts, no ridiculous charges (e.g. tethering fees), data rollover, data stash, etc, T-Mobile leaves the other carriers in the dust. I am not surprised at all at how well they are doing. I just hope the Un-Carrier revolution keeps going. I love it!

5. Justlooking

Posts: 84; Member since: Aug 27, 2014

I switched from Verizon to Tmobile two years ago and i have not looked back. I cut my bill in half, have real unlimited data and jump on demand lets me get new flagship phones when ever i want to. Service was mediocre at times but it has improved tenfold in the last year, plus I do not have to worry about the kids using all the data and going over.

7. Omarc07

Posts: 574; Member since: Nov 12, 2012

I switched back to T-Mobile before it was bad surprisingly now in 2016 it works a LOT better than att or verizon here in los angeles. Better call quality, and faster Lte than the other 2. And better signal in building s for example in the LA fitness i go in montebello att n verizon always had a hard time getting signal inside sometimes even went to no service so I couldn't stream music. Now tmobile i have 3 bars band 12 lte deep in the gym n can stream music just fine . Same in other buildings.

8. Bernoulli

Posts: 4358; Member since: Sep 01, 2012

T mobile keeps doing great, awesome. With this momentum I wonder if soon they will gather enough cash to compete against at&t spectrumwise.

10. TmoRep

Posts: 107; Member since: Apr 20, 2016

We already cover over 97% of AT&T Customers!

11. Bernoulli

Posts: 4358; Member since: Sep 01, 2012

well, this past December I took a trip from Dallas TX to Fort Collins, CO and I roamed for about 5/8 of the way, it was quite painful to have only 50 MB of data to play with while people on at&t had LTE throughout. Not being salty, just hope the coverage gets better in central US.

12. TmoRep

Posts: 107; Member since: Apr 20, 2016

We'll definitely be acquiring more towers shortly, stay tuned.

13. bubbadoes

Posts: 1225; Member since: May 03, 2012

coverage is still at rock bottom..drive from ft meyer to miami and you will see the difference in big red and the un carrier. T-mobile is the only one making money in the deal considering most people will spend 20 dollars to save 5 dollars in the long run. soon the network will be saturated with all the new net subscribers on top of 18 smaller carriers using the T mobile networks. t mobile is great for staying in the city...

14. Omarc07

Posts: 574; Member since: Nov 12, 2012

Tru that for me it works im always in the city in Los Angeles were it works better than Verizon and att only times i travel is when i go to san Fransisco or san jose but then again in san Fransisco and san jose it also works really really good. Another reason im staying is cuz of the free international roaming try using att or Verizon overseas Haha u will get home to a HUUGE bill were as with tmobile u wont have that problem and u also wont have to buy a sim overseas.

15. theo14461 unregistered

T Mobile has succeeded for one reason; AT&T, and Verizon are rip-offs.

16. stopresisting

Posts: 16; Member since: Mar 05, 2013

I moved my 4 lines from sprint to TMO last September and couldn't be happier. Coverage in NYC with TMO has been rock solid. Keep up the good work TMO

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