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