Tech 

Shares of T-Mobile hit a 52-week high after posting strong third-quarter results

On Thursday, T-Mobile reported third-quarter earnings strong enough to lift the stock to a new 52-week high of $151.93. In fact, the stock rose 7.4% or $10.37 today to close at $151. In the third quarter, the second largest mobile operator in the country registered 854,000 net additions of postpaid customers. This is the highest amount since the closing of the merger with Sprint and the highest amount in the US wireless industry for the quarter.

T-Mobile also set a company record with 394,000 subscription net account additions, also the highest in the industry. Postpaid customer net additions of 1.6 million surpassed Verizon and AT&T combined. Postpaid churn, the percentage of customers who left T-Mobile for another carrier, improved to 0.88%, making it the only wireless carrier to show an improvement in churn from one year to the next.

Prepaid revenue for the quarter of $2.48 billion was flat from a year ago. Net prepaid customers added were 105,000, up 39,000 from the number added last year.

With an industry-leading 7% annual subscription growth, T-Mobile collected $15.4 billion in service revenue, up 4% year-over-year. Total revenue of $19.48 billion was down slightly from $19.62 billion a year earlier. Net income of $508 million and diluted earnings per share of 40 cents were down from $723 million and 55 cents in the same quarter last year.

Earnings were hit by $972 million, or $0.77 per share, due to costs related to the Sprint merger. Another $803 million, or 64 cents per share, was taken out of earnings because of the planned sale of the cable phone business.

T-Mobile CEO Mike Siewert commented on the report, saying, “We’ve always said that our goal is to be the first and only provider to provide customers with both the best network and the best value, without to have to sacrifice for each other – and based on another set of exceptional customers and third quarter financial results, it’s clear we’re delivering on that promise. »

The CEO added: “Due to our highest net postpaid account additions and industry-leading postpaid and broadband customer growth, we are raising the forecast for the third time this year. Our Un-carrier playbook continues to win in this ever-changing competitive and macroeconomic climate, and our momentum is only building. »

The carrier’s ultra-capacity 5G network, which uses T-Mobile’s average 2.5 GHz spectrum, now covers 250 million people, or up to Verizon plans to cover in two years.

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