The second-largest wireless carrier in the US, T-Mobile has released its quarterly earnings report and it’s very impressive. T-Mobile has reported that it recorded over a 100% increase in its net customer additions.
From Q1 of 2020 to the end of Q1 of 2021, its customer addition grew from 649,000 to 1.36 million which is more than double. From January through March 2021, its postpaid phone net addition is 773,000 which is a massive increase compared to the 452,000 added same period in 2020.
The stats above are the biggest number of additions in the industry.
T-Mobile Record massive Increase in First Quarter
The merger with Sprint also helped with these numbers as more than 205 Sprint customers are now in the T-Mobile network and half of the traffic generated by these Sprint customers goes to the T-Mobile network also.
CEO Mike Sievert stated that the carrier is providing 5G service to 140 million people and expects to cover 200 million by the end of the year. But overall, T-Mobile boosted 103.4 million subscribers at the end of the First Quarter. This is a massive increase compared to the 68.5 million counted at the end of the first quarter of 2020.
“T-Mobile puts customers at the center of everything we do by giving them the best network, value and experience all at once – and this quarter’s stellar, industry-leading results prove that they’re noticing. We just keep pushing further ahead of the competition. Our network leadership is fueling customer momentum, delivering merger synergies and expanding our addressable markets for growth. We have so much confidence that we are raising 2021 guidance just one quarter into the year. Our mission is to be the very best at connecting customers to their world and we’re delivering on it.”CEO Mike Sievert
Postpaid plans are not the only space where they recorded an increase.
The net customer additions for prepaid plans amounted to 151,000 compared to 128,000 in last year’s first quarter. Postpaid phone churn climbed from .86 to .98 yearly (no doubt impacted by the merger) and pre-paid churn was 2.78% down from 3.52% during the first quarter of 2020.
For the full year, T-Mobile says that total postpaid net additions will be between 4.4 million and 4.9 million. This prediction is an increase from its previous guidance calling for a gain this year of between 4 million and 4.7 million postpaid net additions.
The company also raised its forecast of synergies created by the merger from $2.8 billion to $3.1 billion. Sievert said, “We have so much confidence that we are raising 2021 guidance just one quarter into the year.”
The executive said, “We’ve always talked about speeds hitting 400 Mbps plus on average, and that’s a target clearly in our sights and one we would hope to get to by the end of this year.”
During the first quarter, T-Mobile recorded $19.8 billion in revenue with a net income of $933 million, down from the $951 million reported during the same time period last year.
That works out to earnings of 74 cents per share compared with last year’s $1.10.
T-Mobile arguably has the best 5G coverage and over the last 18 months, the number of consumers who consider T-Mobile “The 5G Company” has risen by 120%.
Based on real data from millions of customers, Opensignal calculates that the 5G download data speeds of T-Mobile have risen by some 23% since the start of 2021 while the download data speeds of its competitors remained unchanged.
T-Mobile now delivers 50% faster 5G speeds than Verizon and 30% faster 5G speeds than AT&T.
Breaking down its 5G services, low band Ultra Capacity 5G covers 295 million people, this is 4 times more than Verizon and double the number covered by AT&T.
And T-Mobile’s super-fast Ultra Capacity 5G, which takes advantage of the carrier’s mmWave, mid-band, and low-band signals, currently covers 140 million people with plans to cover 200 million people by the end of 2021.
According to T-Mobile, “Ultra Capacity 5G can deliver game-changing performance with broad coverage and fast speeds.”
Investors loved the report with the stock soaring $4.39 today or 3.28% to $138.52. A new 52-week high was set earlier in the day at $138.98.