T-Mobile’s postpaid subscribers

In this series, we will look at some aspects of T-Mobile’s (TMUS) performance in comparison to its peers in 4Q15. Let’s start with T-Mobile’s postpaid customer growth in the saturated US wireless space during the quarter. As per preliminary figures by the telecom company, its postpaid base grew by a robust ~16.6% YoY (year-over-year) to ~31.7 million at the end of 4Q15. This customer growth continued to be significantly higher than reported growth from other top US wireless players like Verizon (VZ), AT&T (T), and Sprint (S).

T-Mobile’s Postpaid Subscriber Growth Was Much Higher than Peers

During 4Q15, AT&T’s wireless postpaid subscribers in its domestic operations grew by ~1.8% YoY to ~77.1 million. Meanwhile, Verizon’s postpaid customers rose by ~4.4% YoY to ~106.5 million by the end of the quarter. Additionally, postpaid customers for the Sprint platform rose ~4.7% YoY to reach ~30.9 million at the end of the same quarter.

Postpaid customer growth momentum for T-Mobile in 4Q15

Now let’s look at T-Mobile’s net additions of customers in the postpaid component in 4Q15. As per preliminary figures by the telecom company, on a net basis, the company added ~1.3 million postpaid customers during the quarter. These net additions grew ~1.3% YoY during 4Q15.

In the postpaid phone category, the net additions of the carrier were ~917,000. This figure fell ~11.6% YoY during the quarter. Meanwhile, on a net basis, the company’s mobile broadband additions increased robustly by ~56.9% YoY to ~375,000 during 4Q15.

Instead of direct exposures to US telecom companies, you can consider diversified exposure to the space by investing in the SPDR S&P 500 ETF (SPY). The ETF had invested ~2.4% of its holdings in US telecom companies at the end of December 2015.

Latest articles

16 Jul

Q2 Earnings Were a Mixed Bag for J.B. Hunt

WRITTEN BY Anirudha Bhagat

J.B. Hunt reported mixed Q2 earnings, as its revenues grew YoY but earnings declined.

16 Jul

What to Expect From Nucor’s Q2 Earnings This Week

WRITTEN BY Mohit Oberoi, CFA

Nucor is scheduled to release its second-quarter earnings on Thursday. The company has seen an upwards price action of 7.4% year-to-date.

16 Jul

Will HollyFrontier's Q2 Results Improve?

WRITTEN BY Maitali Ramkumar

HollyFrontier (HFC) is expected to release its second-quarter results on August 1.

On Monday, Citigroup downgraded Tiffany (TIF) stock to “neutral” from “buy” and reduced its target price to $100 from $115 per share.

16 Jul

AT&T’s WarnerMedia Segment to Cut Jobs

WRITTEN BY Ambrish Shah

AT&T’s WarnerMedia segment is planning job cuts from its ad sales unit as the company continues to reorganize the businesses it acquired.