T-Mobile’s revenue in 3Q17
Wall Street analysts expect T-Mobile’s (TMUS) total revenue to grow ~7.7% YoY (year-over-year) to ~$10.02 billion in 3Q17.
In 2Q17, T-Mobile’s total revenues beat the analysts’ consensus estimate of ~$9.8 billion, reporting total revenues of ~$10.2 billion—a 10.0% YoY increase—primarily driven by ~8.1% growth in services revenue, from $6.9 billion in 2Q16 to $7.4 billion in 2Q17.
The growth in T-Mobile’s wireless service revenues was a result of its expanding subscriber base and the success of its MetroPCS prepaid brand and “UN-Carrier” plan initiatives.
The company’s equipment revenues rose ~14.5% YoY, from $2.2 billion in 2Q16 to $2.5 billion in 2Q17, as the it promoted its EIP (equipment installment plans). Remember, in installment plans, users pay for the devices in monthly installments.
Major US wireless peers in 2Q17
Verizon’s (VZ) wireless revenues fell ~1.9% YoY to $21.3 billion in 2Q17, while AT&T’s (T) wireless revenues from its domestic operations fell ~2.3% YoY to $17.5 billion. Meanwhile, Sprint’s (S) revenues from wireless grew ~2.8% YoY to $7.8 billion. This suggests that T-Mobile has managed to grow the most among its major competitors.
In the next part of this series, we’ll assess T-Mobile’s anticipated adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) in 3Q17.