Did T-Mobile’s Wireless Service Revenues Accelerate in Q1?



T-Mobile’s wireless service revenues

For wireless carriers, service revenues are a stable revenue stream. In the first quarter, T-Mobile (TMUS) is expected to lead the US wireless industry in YoY (year-over-year) service revenue percentage growth. T-Mobile broke all of the records and reported record-high service revenues of $8.3 billion for the first quarter—up ~6.0% YoY and up ~1.1% sequentially.

The YoY and sequential increase in service revenues was mainly due to the growth in T-Mobile’s branded postpaid revenues.

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T-Mobile’s service revenues in the postpaid component rose ~8.3% YoY to $5.5 billion in the first quarter. The service revenues in the prepaid component declined ~0.7% YoY to $2.4 billion.

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Other US mobile operators

In comparison, Verizon’s (VZ) wireless service revenues rose ~4.4% YoY to $16.1 billion in the first quarter. AT&T’s (T) wireless service revenues from its combined domestic operations grew ~2.9% YoY to $13.8 billion. Sprint (S) hasn’t reported its financial results for the same quarter. Analysts expect Sprint’s wireless service revenues to decline ~3.1% YoY to $5.4 billion in the fourth quarter of fiscal 2018, which ended on March 31.


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