Friday 7 August 2020 | 00:14 CET | News
T-Mobile US said revenues got a boost in the second quarter from its merger with Sprint, while the net profit got hit by the effects of the coronavirus pandemic and one-off costs related to the merger. The number of customers added came well within the company’s wide guidance, with total customers reaching 98.3 million at the end of the quarter, pushing the company to second place on the US market after Verizon, overtaking AT&T. This is T-Mobile US’ first quarter since closing its merger with Sprint.
Customer additions reach 1.245 million
Net customer additions went to 1.245 million, including 1.112 million postpaid and 253,000 postpaid phone net customers. Postpaid other customer additions amounted to 859,000 while prepaid additions went to 133,000. Postpaid phone churn amounted to 0.80 percent with prepaid churn at 2.81 percent.
T-Mobile US compares the figures to its own standalone ones from the previous quarter when the company had a total of 68.543 million customers. In that quarter, the operator added 649,000 customers, with 777,000 postpaid, 452,000 postpaid phone and 325,00 postpaid other additions and 128,000 prepaid phone losses.
In Q2 2019, T-Mobile had 65,983 customers, with 1.239 million net customer additions, 1.108 million additions for postpaid, 710,00 for postpaid phone, 398,00 for postpaid other and 131,000 for prepaid.
Revenues advance, profit hit by covid-19, merger related expenses
Service revenues for the New T-Mobile rose to USD 13.230 billion from its standalone figure the year earlier of 8.546 billion, boosted by higher customer numbers, while total revenues advanced to USD 17.671 billion from 10.979 billion. The adjusted EBITDA lifted to USD 7.017 billion from 3.461 billion but the net profit sank to USD 110 million from 939 million, mainly on covid-19 and merger costs. These went to USD 341 million for the pandemic and USD 798 million in merger-related expenses.
The company said it remained confident in its ability to deliver USD 43 billion in synergies and to achieve USD 6 billion worth of annualised cost savings from the Sprint merger.
The operating cash flow declined to USD 777 million from 2.147 billion while the free cash flow increased to USD 1.441 billion from 1.169 billion.
Customers additions will slow to USD 1.7-1.9 million in H2
For the second half of the year, T-Mobile US is guiding for postpaid net customer additions of 1.7-1.9 million, adjusted EBITDA of USD 12.4-12.7 billion, and merger and integration-related costs ranging from USD 800 million to USD 1 billion before taxes. These costs are excluded from adjusted EBITDA but will impact the net profit and cash flows. The operating cash flow, including those costs, is expected at USD 5.3-5.7 billion while the free cash flow, also including the expenses, will range at USD 300-500 million.
Source: Telecompaper.com : https://bit.ly/3fASlTM
