T-Mobile’s Solid Postpaid Customer Growth Continued in 1Q16
T-Mobile's 1Q16 Results: Majority of Analysts Recommend a 'Buy'
T-Mobile’s postpaid customers in 1Q16
In the previous part of this series, we saw that service revenue of T-Mobile’s (TMUS) postpaid component increased by a solid ~14% YoY (year-over-year) by the end of 1Q16. The growth in this revenue stream was driven by a robust increase in T-Mobile’s postpaid customers in a saturated US wireless space.
By the end of 1Q16, T-Mobile’s postpaid subscribers had grown by a significant ~15.6% YoY and reached ~32.7 million.
T-Mobile’s net customer acquisitions
Now let’s look at the momentum of the postpaid customer growth of the wireless carrier in 1Q16. On a net basis, T-Mobile’s postpaid customer additions were a solid ~1 million during the quarter. In these customer acquisitions, the wireless company’s phone net additions were ~0.88 million in 1Q16.
Postpaid subscribers of the other top US wireless carriers in 1Q16
Now let’s look at the postpaid subscriber growth of the other top US mobile players by the end of 1Q16. In the domestic component, AT&T’s (T) postpaid subscribers grew by ~1.3% YoY to reach ~77.1 million at the end of 1Q16. Here, on a net basis, the telecom company added ~0.13 million postpaid customers during the quarter.
Meanwhile, in the case of Verizon (VZ), the postpaid customers grew by ~4.4% YoY to reach ~107.2 million during the quarter. The telecom company had net postpaid additions of ~0.64 million in 1Q16.
As we mentioned earlier in the series, Sprint (S) has not yet reported its results for the quarter.
Instead of taking direct exposures to the stocks of players in the US telecom industry, you may consider taking diversified exposure to this space by investing in the SPDR S&P 500 ETF (SPY). SPY held a total of ~2.8% in some of the US telecom companies at the end of March 2016.
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