Here’s what T-Mobile US Q2 earnings report tell us
- T-Mobile US beats Wall Street estimates in the fiscal second quarter.
- The telecom company raised guidance across the board on Thursday.
- CEO Mike Sievert discusses quarterly results on CNBC's "Closing Bell".
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T-Mobile US Inc (NASDAQ: TMUS) reported its financial results for the second quarter on Thursday that beat Wall Street estimates. The U.S. firm raised its future guidance across the board, including for cash flow, EBITDA, and revenue, but shares were still down more than 2% in after-hours trading despite
T-Mobile said its net income in the second quarter printed at $978 million that translates to 78 pence per share that topped analysts’ estimates. In the comparable quarter of last year, its net income stood at a sharply lower $110 million or 9 cents per share.
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The telecommunications company generated $19.95 billion of revenue in the recent quarter that represents an annualised growth of 13%. According to FactSet, experts had forecast $19.36 billion of revenue in Q2.
Other notable figures
The mobile network operator firm added 1.35 million net new customers in the second quarter. Wall Street estimate for new account growth stood at a much lower 1.18 million. At $14.5 billion, services revenue also jumped 10% on a year over year basis.
T-Mobile topped estimates in the prior quarter (Q1) as well. The Washington-based company hopes to grow its subscriber base by 5.3 million this year.
CEO Mike Sievert’s remarks on CNBC’s “Closing Bell”
Commenting on the earnings report, CEO Mike Sievert said on CNBC’s “Closing Bell”:
“Our new account growth was the highest in our company history – 349,000 new billing relationships just this quarter. That’s coming from taking share from AT&T, Verizon, and other places. We have the best 5g network in the country, and it’s time that to make sure that America knows it.”
As per T-Mobile, the Sprint merger is now paying off, with 80% of Sprint traffic now carried on the T-Mobile network. At the time of writing, the $180 billion company has a price to earnings ratio of 59.40.