T-Mobile’s 2016 Guidance for Net Postpaid Customer Additions Rose



T-Mobile’s 1Q16 results

T-Mobile (TMUS) reported its 1Q16 results on April 26, 2016. The US (SPY) wireless company had an EPS (earnings per share) of $0.56 in 1Q16. The figure included $0.46 for a gain on spectrum. The telecom company’s revenue increased robustly by ~10.6% YoY (year-over-year) to reach ~$8.6 billion for the quarter.

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Performance of other top US wireless carriers in 1Q16

Now, let’s look at the growth in wireless revenue of the other major US wireless players in 1Q16. During the quarter, Verizon’s (VZ) wireless revenue decreased by ~1.5% YoY to reach ~$22 billion.

Meanwhile, in the domestic component, AT&T’s (T) wireless revenue declined by ~1.3% YoY to ~$18 billion in 1Q16. Sprint (S) has not yet reported its results for the same quarter.

T-Mobile’s new guidance for 2016

T-Mobile (TMUS) has provided updated guidance for 2016. The wireless carrier anticipates postpaid net additions of customers in the range of 3.2 million–3.6 million for 2016. Earlier, this guidance figure was between 2.4 million–3.4 million for 2016.

Additionally, its 2016 target for adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) is now between $9.7 billion–$10.2 billion. This has included the effect of its Data Stash, spectrum gain, and leasing plans on this EBITDA figure. Earlier, this EBITDA guidance—including the impact of its Data Stash and leasing plans—was between $9.1 billion–$9.7 billion for 2016.

Regarding its capital expenditure for 2016, T-Mobile continues to expect the figure to be between $4.5 billion–$4.8 billion.

In the next part of this series, we will look at T-Mobile’s performance in 1Q16.


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