T-Mobile adds more net new postpaid phone subscribers in Q3 than AT&T and Verizon combined

T-Mobile reported its third-quarter earnings this morning and the carrier continues to have the momentum needed to report results stronger than the rest of the industry. Net new postpaid phone subscribers, the most important metric in the business, rose 850,000 which was flat with the number posted during the same quarter last year. Still, the number swamped the 468,000 net new postpaid phone subscribers added by AT&T and the 100,000 net new consumer and business postpaid phone subscribers added by Verizon during the three months.

Not only was the third quarter net new postpaid phone additions the best in the industry, the postpaid phone churn improved one basis point year-over-year to .87%, a record low for T-Mobile during any third quarter. Pre-paid net new additions came to 79,000 during the quarter, off 24.8% from the same quarter in 2022. Pre-paid churn, at 2.81%, was 7 basis points lower than Q3 of last year. Due to the nature of pre-paid wireless, more customers are apt to leave their current provider for a new one than postpaid customers.

T-Mobile now has a company-record 117.9 million subscribers. That is up 5.5% from the 111.8 million subscribers the company had during the same quarter last year. Revenue of $19.3 billion for the quarter was down 1.2% year-over-year. At $2.14 billion, net income rose 321.7% from the $508 million reported for last year's Q3. Diluted earnings per share came to $1.82 versus 40 cents a share a year ago. T-Mobile's Ultra Capacity 5G, combining its mid and high-band services, now covers 300 million people. Total 5G coverage now reaches 330 million people or 98% of Americans.

T-Mobile CEO Mike Sievert said this about the report: "I’ve said it before and I’ll say it again: in this competitive environment, only T-Mobile can deliver the type of stellar results we saw in Q3 because only we can consistently deliver the best network and best value combination that customers want. This quarter’s best-in-class customer and financial growth,
including our industry-leading postpaid net customer AND account adds and highest cash flow in Un-carrier history, paint a clear picture of a durable and differentiated strategy that is working." 

Sievert added, "Our unmatched offering is bringing more and more consumers and businesses to the Un-carrier, including, for the first time, the highest share of postpaid
switchers in smaller markets and rural areas. At the same time, we’re delivering significant shareholder value that will propel us into a future where we have plenty of room to run."

The report at first sent T-Mobile shares over $2 higher before sellers came in (thanks to Alphabet's decline) and reversed the gains and more. The stock finished the regular trading session at $140.99 for a loss of 8 cents or .057%.