T-Mobile’s subscriber growth momentum
In this series, we’ll look at some points discussed by T-Mobile (TMUS) in the recent UBS Global Media and Communications Conference that was held on December 7, 2015. During the conference, G. Michael Sievert, the company’s CEO, talked about the momentum of subscriber growth that the company is witnessing in 4Q15.
Talking about T-Mobile’s subscriber growth in 4Q15, Sievert said, “So generally what we’re seeing is a quarter with strong growth numbers.” He added, “By the way, within that, we’ve got some promotions that are unfolding. Our Black Friday weekend, the four-day weekend was very competitive. We performed nicely – a lot better than last year, and last year was a strong fourth quarter for us, about double the net adds on the postpaid side over that four-day period that we saw last year.”
Growth of T-Mobile’s postpaid subscribers among peers
T-Mobile’s postpaid base has been growing significantly compared to its peers in the United States. Even in 3Q15, its postpaid customers rose ~17.3% YoY (year-over-year) to ~30.4 million. During the same period, postpaid subscribers of AT&T (T) and Verizon (VZ) rose YoY by ~2.1% and ~4.9%, respectively.
At the end of that quarter, the postpaid subscribers of Verizon and AT&T were around 105 million and 76.7 million, respectively. Meanwhile, Sprint (S) Platform’s postpaid base grew YoY by around 3.7% to reach 30.6 million users at the end of the same quarter.
In terms of ETF exposure, T-Mobile made up 0.74% of the iShares Exponential Technologies ETF (XT) at the end of October 2015. Also, the ETF had a total exposure of around 12.7% on select players in the global telecommunication sector on the same date.