Renegade wireless carrier T-Mobile reported its earning results for the fourth quarter of 2016 today, announcing impressive results that beat Wall Street’s expectations by 50%.
From October through December, T-Mobile scored a net profit of $390 million, or 45 cents a share. That is a 32% hike from last year’s fourth quarter profit of 34 cents a share, or $297 million. Fourth quarter revenue grew 23.4% to $10.18 billion for the period. Considering that Wall Street was expecting T-Mobile to report profits of 30 cents a share, it appears that T-Mobile topped expectations by a whopping 50%. Revenue also topped Wall Street estimates of $9.84 billion. For the quarter, T-Mobile added 2.1 million net new subscribers
A Mere 1.28% Phone Churn for 2016
The number three U.S. carrier added 933,000 postpaid subscribers in the fourth quarter, and its postpaid phone churn for the quarter declined year-over-year to 1.28% from 1.46%. The Magenta carrier expects to add 2.4 million to 3.4 million net branded postpaid subscribers in 2017. For the year of 2016, the network added 8.2 million net new subscribers. 3.3 million of that amount were postpaid accounts.
In response to the weekend announcement that Verizon would once again offer an unlimited data plan to its customers, T-Mobile announced on Monday that their ONE plan subscribers will now be able to stream HD video and will get 10GB of high-speed data at no extra charge.
“These results are proof that doing right by customers is also good for shareholders. Not only are customers flocking to T-Mobile, but we’re also producing rock-solid financial results including 11% growth in service revenues, 23% in total revenues, 31% in net income and 12% in Adjusted EBITDA year-over-year in Q4,” said John Legere, President and CEO of T-Mobile. “The competition just doesn’t get that customers want to come first! That’s three years in a row that we’ve added more than 8 million customers and taken all of the postpaid phone growth in the industry. The Un-carrier revolution continues in 2017!”
Share Price Benefits from Results
T-Mobile shares closed at $61.60. Down from a mid-morning high of $62.84.