What To Watch For In T-Mobile’s Q2 Results

+8.56%
Upside
162
Market
176
Trefis
TMUS: T-Mobile US logo
TMUS
T-Mobile US

T-Mobile, the third largest wireless carrier, is expected to publish its Q2 2018 results in the coming days. In this note we provide a quick overview of what we will be watching when the company reports earnings.

Our interactive dashboard analysis outlines our valuation estimates and forecasts for both Sprint and T-Mobile.

While T-Mobile should continue to lead the industry in terms of postpaid phone net additions, its growth could slow year-over-year on account of mounting competition in the wireless market as well as increasing saturation in the wireless space. During Q1, the carrier added 617k new postpaid phone subscribers, marking a decline of 22% compared to last year. That said, T-Mobile has scope to continue to grow its postpaid base in the medium-term, driven by its deployment of low-band spectrum (which should help it improve coverage) and its move to expand its retail stores (related: Why T-Mobile Is Aggressively Expanding Its Retail Footprint). Additionally, the company’s planned merger with Sprint could also help it drive subscriber adds, considering the stronger combined network footprint and significant cost synergies, which could be passed on to customers in terms of price cuts. (related: Does The Sprint – T-Mobile Merger Help Or Hurt AT&T And Verizon?) The carrier has projected total postpaid net customer additions (phone and other devices) of between 2.6 and 3.3 million, for the full year.

Relevant Articles
  1. Up 12% Over The Last Year, Will T-Mobile’s Mid-Band Spectrum Edge Help It Outperform In 2024?
  2. Rising 15% In The Last 3 Months, How Will T-Mobile Stock Fare Following Q4 Earnings?
  3. T-Mobile Stock A Buy At $140?
  4. Are T-Mobile’s Earnings Set For A Boost In Q1?
  5. Why T-Mobile Stock Continues To Outperform
  6. T-Mobile’s Subscriber Growth Is Set To Cool, But The Stock Still Looks Attractive

The carrier’s branded postpaid phone ARPU is likely to see a year-over-year decline, due to a larger mix of users on its One Unlimited plans, which offer all-in pricing and also due to some promotions targeting families and new segments. The carrier has also been offering relatively attractive offers on its smartphones, and it’s possible that this could have an impact on its billings per account.

What’s behind Trefis? See How it’s Powering New Collaboration and What-Ifs

For CFOs and Finance Teams | Product, R&D, and Marketing Teams

More Trefis Research

Like our charts? Explore example interactive dashboards and create your own