T-Mobile's profits nearly tripled through Q4 2015 amidst customer growth

T-Mobile's profits nearly tripled through Q4 2015 amidst customer growth

T-Mobile's German bosses must be pretty enthusiastic over the news that the Un-carrier's profits have nearly tripled in 2015's final quarter. In the three months ended Dec 31, T-Mo generated an income of $297 million, compared to $101 million a year earlier. It also added a net 2.1 million subscribers (of which 1.3 million are branded postpaid), attracted by its aggressively priced, consumer-friendly offers.

Likewise, share prices increased from 12 cents per share up to 34 cents. The total revenue of $8.25 billion beats the average analyst estimate of $8.20 billion, which makes for a %1.1 increase. The Un-carrier looks forward to adding up to 3.4 million branded postpaid customers throughout 2016, compared to the 4.5 million from last year. This brings to question T-Mobile's ability to sustain its rate of growth.

The carrier's success owes to its customer-first initiatives, such as free music and video streaming, low-priced plans with phone leasing and data rollover offers. Although the carrier couldn't best the 1.5 million branded postpaid users added by Verizon during the same quarter, it beat Sprint's 501,000 figure. T-Mo's churn rate (at which it loses subscribers) was 1.46%, which is better than Sprint's 1.62%, but below Verizon's 1.14% and AT&T's 1.02%. Clearly, there's still work cut out for the Un-carrier and its notoriously outspoken American CEO, John Legere.

via The Verge

FEATURED VIDEO

27 Comments

1. S.R.K.

Posts: 678; Member since: Feb 11, 2016

Soon will overtake Verizon. The greedy company which offers less for more. I'm paying £28 for 25gb 4G UT UM, sim only. Always 70mbs above, sometimes 120mbs.

18. droiduh

Posts: 97; Member since: Jun 04, 2015

Overtake Verizon? Ha.

19. Elfmonster unregistered

I just went back to T-mobile because I live in Vegas and it is the only service that works everywhere. You'd think AT&T. Nope. AT&T sucks monkey balls in Vegas.

27. tacarat

Posts: 853; Member since: Apr 22, 2013

Low frequency spectrum helps. Keep an eye on the auction news.

22. andrewkb

Posts: 24; Member since: Jan 04, 2016

but theyre already raising prices

24. Acdc1a

Posts: 473; Member since: Jan 21, 2016

4 unlimited lines for $150 or 4 10GB lines for $120...raising what?

2. cncrim

Posts: 1584; Member since: Aug 15, 2011

Yes, tmobile can continue grow because ATT and Verizon, big two not offer any thing as attractive as TM.

5. Arch_Fiend

Posts: 3947; Member since: Oct 03, 2015

I switched to Tmo from Att and i could be happier.

6. dcgore

Posts: 234; Member since: Feb 24, 2012

You can always switch back.

10. JunitoNH

Posts: 1946; Member since: Feb 15, 2012

I think he meant, He could not be any happier. But you are correct, the way it is written, implies he's unhappy with T-MOBILE.

13. Arch_Fiend

Posts: 3947; Member since: Oct 03, 2015

LOL i dun goofed.

12. Arch_Fiend

Posts: 3947; Member since: Oct 03, 2015

HAHA, Couldn't be happier lol typo bruh.

8. tedkord

Posts: 17189; Member since: Jun 17, 2009

Unless you value coverage, like a traveler. You're going to run into a whole lot more dead spots traveling with T-Mo. Here's hoping they plug those holes soon. Id love to tell Verizon to shove it, but right now I see all the holes my son's T-Mo phone has when we drive around.

14. droiduh

Posts: 97; Member since: Jun 04, 2015

Me too. My family and I travel (by car or train) up and down the east coast a lot. My parents switched to TracFone while I stayed with Verizon. I usually get 3 or 4 bars (LTE) while they get 1-2 bars (if they are lucky - good enough for texting only) or nothing. I watch a lot of videos (hulu, netflix, youtube, etc). Dad always ask or say to me, "Is it working?".

25. Acdc1a

Posts: 473; Member since: Jan 21, 2016

If he has a phone that isn't band 12 compliant there are a lot more holes than should be there.

3. Bernoulli

Posts: 4359; Member since: Sep 01, 2012

Will be nice to see if at one point t mobile turns into one of the greedy two.

9. MrElectrifyer

Posts: 3960; Member since: Oct 21, 2014

I sure hope that never happens, but it's never enough money when it comes to capitalism...

4. Arch_Fiend

Posts: 3947; Member since: Oct 03, 2015

I bet att wish they would have bought t mobile a couple years back when they had the chance lol.

11. bubblechaos

Posts: 114; Member since: May 04, 2015

My opinion: I doubt it, Had it fall under At&T it would not reach its current position. (because At&T is greedy as hell, would never offer these pricing and promotions) But truthfully who knows. It could have grown more than it did now.

15. Arch_Fiend

Posts: 3947; Member since: Oct 03, 2015

That's my whole point.Tmo is stealing customers from Att if they had bought Tmo, that wouldn't be happening.

21. Xelief

Posts: 62; Member since: Aug 17, 2015

Uh, they didn't pass up the chance, but were DENIED it.

23. Arch_Fiend

Posts: 3947; Member since: Oct 03, 2015

I wouldn't say they were DENIED,they had the opportunity. http://money.cnn.com/2011/12/19/technology/att_tmobile_dead/

7. Pattyface

Posts: 1658; Member since: Aug 20, 2014

Maybe work on tripling your coverage now?

16. droiduh

Posts: 97; Member since: Jun 04, 2015

Yeah duh.

17. droiduh

Posts: 97; Member since: Jun 04, 2015

That's great. Now what about the debts? How much profits T-Mo have after paying them off? Much less I'm sure.

20. greyarea

Posts: 267; Member since: Aug 14, 2015

Because that's the most important measure? Is Apple superior to all other phone companies because of their profit numbers? Customer first doesn't always equal highest profit. Not sure why that means more to you than subscribers.

26. Acdc1a

Posts: 473; Member since: Jan 21, 2016

AT&T has $118.5 BILLION in debt...debt is leverage.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.