T-Mobile lead other carriers by adding a considerable number of post-paid customers in the latest quarter.
The post-paid customer additions did not reach the standards set in last year’s quarter, but the customer increase is way ahead of the combined number of AT&T, Sprint and Verizon additions. Not only this, there is a remarkable growth in prepaid customers as well. The company’s post-paid phone additions correlates with Wall Street estimates and the total revenue as well as service escalated annually.
Jennifer Fritzsche, analyst at Wells Fargo said the numbers are “solid” and stressed over the significance of free cash flow in near future for the company. T-Mobile is also a provider of government cell phone service or government assisted cell phone plans.
Fritzsche commented "While gross adds for the industry were slow overall (and growth driven more by lower churn), TMUS lead the industry by a wide margin in handset adds," "The Free Cash flow metric is becoming increasingly meaningful for TMUS and (depending on the auction spending) is a metric which should see a significant ramp in 2017. Free cash flow expectations for the remainder of 2016 should largely depend on the amount of working capital outflows from handset purchases and its spend in the upcoming broadcast auction."
The post-paid customer additions did not reach the standards set in last year’s quarter, but the customer increase is way ahead of the combined number of AT&T, Sprint and Verizon additions. Not only this, there is a remarkable growth in prepaid customers as well. The company’s post-paid phone additions correlates with Wall Street estimates and the total revenue as well as service escalated annually.
Jennifer Fritzsche, analyst at Wells Fargo said the numbers are “solid” and stressed over the significance of free cash flow in near future for the company. T-Mobile is also a provider of government cell phone service or government assisted cell phone plans.
Fritzsche commented "While gross adds for the industry were slow overall (and growth driven more by lower churn), TMUS lead the industry by a wide margin in handset adds," "The Free Cash flow metric is becoming increasingly meaningful for TMUS and (depending on the auction spending) is a metric which should see a significant ramp in 2017. Free cash flow expectations for the remainder of 2016 should largely depend on the amount of working capital outflows from handset purchases and its spend in the upcoming broadcast auction."
The company gained 890,000 net post-paid customers, including 646,000 post-paid phone adds in the second quarter. T-Mobile's latest quarter revenues surged 12 percent year over year to $6.9 billion and the total revenues mounted 13 percent year-over-year to $9.2 billion.
As a result of another successful quarter due to continued strong customer growth and improved revenues, the company’s shares rose slightly. The carrier also provides services for the Lifeline program which is known as government cell phone service.
Moffett said "For the record, we've never thought T-Mobile would be acquired. But more importantly, we've never though that one need to think it would be in order to want to own the stock," "T-Mobile's remarkable growth rate -- service revenues were up 12.1 percent from a year in today's report in a market that is down year-over-year -- and free cash flow trajectory make the case without one having to believe it will be acquired."
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