T-Mobile’s Subscriber Growth Story Was Solid in 3Q15



T-Mobile’s subscribers in 3Q15

In the prior parts of this series, we talked about T-Mobile’s (TMUS) revenue growth during 3Q15. The customer growth of the wireless carrier has largely been supporting its revenue growth. This trend continued in 3Q15.

The wireless carrier’s postpaid subscribers grew by a significant ~17.3% YoY (year-over-year) to reach ~30.4 million in the quarter. Meanwhile, the telecom company’s prepaid customers increased by ~6.9% YoY to reach ~17.2 million at the end of 3Q15.

Now let’s look at the momentum of postpaid and prepaid customer growth the carrier witnessed in the quarter.

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T-Mobile’s net customer additions in 3Q15

T-Mobile’s postpaid customer additions, on a net basis, were a significant ~1.1 million during 3Q15. The company had the sought-after postpaid phone net additions of ~843,000 during the quarter. On the prepaid side, the company added, on a net basis, ~595,000 customers during 3Q15.

Postpaid subscribers of the key US wireless carriers in 3Q15

Now let’s look at the growth in the postpaid subscriber base of the other major US wireless players during 3Q15. Verizon’s (VZ) postpaid customers grew by ~4.9% YoY to reach ~$105 million during the quarter. On a net basis, Verizon added ~1.3 million postpaid subscribers in 3Q15.

Meanwhile, AT&T’s (T) postpaid base grew by ~2.1% YoY to ~76.7 million in 3Q15. AT&T had postpaid net additions of ~289,000 during the quarter. Sprint (S) has not yet reported its results for the quarter.

Instead of taking a direct exposure to T-Mobile’s stock, you may consider taking a diversified exposure to the telecom company by investing in the Vanguard Telecommunication Services ETF (VOX). VOX had ~4.2% of its holdings in the US wireless telecom company at the end of September 2015.


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