T-Mobile US has revealed its financial performance and main achievements during the second-quarter of 2024.
T-Mobile added 406,000 high-speed Internet customers. The decrease of 103,000 high-speed Internet customers was primarily due to increased deactivations from a growing customer base. T-Mobile ended the quarter with 5.6 million High Speed Internet customers.
T-Mobile’s postpaid phone churn of 0.80 percent rose 3 basis points due to rate plan optimizations. But sequentially postpaid phone churn decreased 6 basis points primarily due to seasonally lower switching activity and partially offset by rate plan optimizations.
T-Mobile has added 301,000 postpaid accounts. T-Mobile has added 1.3 million postpaid customer accounts, crossing 100 million postpaid customers milestone. T-Mobile added 777,000 postpaid phone customers.
Roughly 30 percent of T-Mobile’s postpaid subscriber base has opted for the Go5G Next and Go5G Plus plans, T-Mobile Chief Financial Officer Peter Osvaldik said.
T-Mobile’s Go5G Next and Go5G Plus plans, which include Netflix and Apple TV+ along with premium data plans have received customer demand.
T-Mobile added 179,000 prepaid customers. Prepaid churn of 2.54 percent improved 8 basis points.
T-Mobile added 1.5 million customers. Total customer connections increased to a record high of 125.9 million at the end of June 2024.
T-Mobile confirms that it has faced deactivations of lower ARPU mobile internet devices in the educational sector that were originally activated during the Pandemic and no longer needed.
T-Mobile has also faced lower additions from high-speed Internet and wearables.
AT&T does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions.
T-Mobile’s service revenues of $16.4 billion grew 4 percent.
T-Mobile’s postpaid service revenues of $12.9 billion grew 7 percent.
T-Mobile’s net income of $2.9 billion grew 32 percent.
T-Mobile has revised its capital expenditures (Capex) to $8.7 billion – $9.1 billion for 2024 as against the previous guidance of $8.6 billion – $9.4 billion.
FORECAST
T-Mobile expects to add between 5.4 million and 5.7 million subscribers in 2024, compared with its previous forecast of 5.2 million to 5.6 million subscriber additions.
T-Mobile raised prices for several of its legacy phone plans in May citing rising costs, which will reflect in customers’ billing cycle starting June 5.
The price hikes push customers to higher-end 5G plans.
Verizon added 148,000 postpaid phone subscribers. AT&T posted 419,000 additions in the second quarter.
Baburajan Kizhakedath
