T-Mobile’s service revenues in Q3 2018
In the previous part, we looked at T-Mobile’s (TMUS) expected consolidated adjusted EBITDA growth in the third quarter. Now let’s take a look at T-Mobile’s expected wireless service revenue growth for the third quarter. Service revenue is a stable revenue stream that’s common to wireless service operators such as AT&T (T), Sprint (S), Verizon (VZ), and T-Mobile.
Wall Street analysts expect T-Mobile’s service revenues to grow ~7.5% YoY (year-over-year) to reach $8.2 billion in the third quarter. In the second quarter, T-Mobile’s service revenues grew ~6.5% YoY to reach $7.9 billion. This growth was driven by the increase in the company’s customer base in existing and greenfield markets.
T-Mobile’s service revenues in the postpaid component increased by ~7.1% YoY to $5.2 billion in the second quarter. Its service revenues in the prepaid component increased by ~2.9% YoY to $2.4 billion.
Performance of other US wireless operators
In comparison, Verizon’s wireless service revenues increased by ~0.8% YoY to $15.8 billion in the second quarter, while AT&T’s wireless service revenues from its combined domestic operations fell ~5.5% YoY to $13.7 billion. Sprint’s service revenues from its wireless component fell ~4.6% YoY to $5.5 billion during the same quarter.
In the next part, we’ll take a look at T-Mobile’s expected postpaid phone customer net additions in the third quarter.