T-Mobile’s postpaid phone ARPU outlook
For 2019, T-Mobile (TMUS) expects its branded postpaid phone ARPU (average revenue per user) growth to be stable YoY (year-over-year) within a range from plus 1% to minus 1%. The company posted a branded postpaid phone ARPU of $46.40 in fiscal 2018.
T-Mobile’s first-quarter highlights
T-Mobile reported branded postpaid phone ARPU of $46.07 in the first quarter, which was down 1.3% from $46.66 in the first quarter of 2018. T-Mobile’s management attributed the YoY decline to the continued subscriber adoption of tax-inclusive plans, the growing success of rate plans and new customer segments like T-Mobile for Business, and ongoing growth in its Netflix offering. The branded postpaid phone ARPU reduction was partially offset by higher premium services revenues and a net decrease in promotional activities.
In the first quarter, T-Mobile added 1.0 million net postpaid customers, which includes 656,000 postpaid phone customer net additions. The company’s postpaid phone customer net additions rose from 617,000 net additions in the first quarter of 2018. The YoY growth in postpaid phone customer net additions was mainly due to the record-low churn of 0.88% in the first quarter.