T-Mobile US added more than 8 million total customers
Staff Writer |
T-Mobile US reported Q4 2016 results. For the third year in a row, the company added more than 8 million total customers and captured all of the industry’s postpaid phone growth by adding 3.3 million branded postpaid phone customers in 2016.
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In prepaid, the company added more than 5 million net additions over the past 3 years, including 2.5 million in 2016.
T-Mobile also completed its third year of growing service revenues, recording 12% growth in 2016 when all of its peers showed declines.
This consistent outperformance continues to distinguish T-Mobile from the pack in wireless and the outlook for 2017 shows that the company plans to continue with strong growth in customers and financial metrics.
Total net customer additions were 2.1 million in Q4 2016, bringing the company’s total customer count to 71.5 million.
This was the 15th consecutive quarter in which T-Mobile generated more than 1 million total net customer additions. For full-year 2016, total net additions were 8.2 million marking the third year in a row of more than 8 million.
Branded postpaid net additions were 1.2 million in Q4 2016. For full-year 2016, branded postpaid net customer additions were 4.1 million, well above the revised guidance for branded postpaid net customer additions of 3.7 to 3.9 million provided in connection with the Q3 2016 earnings.
Branded postpaid phone net additions were 933,000 in Q4 2016, marking the 12th consecutive quarter that T-Mobile has led the industry in branded postpaid phone net additions.
For full-year 2016, T-Mobile added 3.3 million branded postpaid phone customers, capturing all of the industry’s growth for the third consecutive year.
Branded postpaid phone churn was a fourth quarter record of 1.28% in Q4 2016, down 4 basis points from Q3 2016 and down 18 basis points from Q4 2015. For full-year 2016, branded postpaid phone churn was 1.30%, down 9 basis points.
Branded prepaid net additions were 541,000 in Q4 2016, which once again led the industry driven by the continued success of the MetroPCS brand. For full-year 2016, branded prepaid net additions were 2.5 million, which was the best annual performance in company history.
Branded prepaid churn was 3.94% in Q4 2016, up 12 basis points from Q3 2016 and down 26 basis points from Q4 2015. For full-year 2016, branded prepaid churn was a record-low 3.88%, down 57 basis points from full-year 2015.
Wholesale net additions were 363,000 in Q4 2016 and 1.6 million in full-year 2016.
Going forward, T-Mobile expects wholesale net additions to be significantly lower in 2017, as the company’s MVNO partners de-emphasize Lifeline in favor of higher ARPU customer categories.
Service revenues increased by 11% in Q4 2016 to $7.2 billion. This marks the 11th consecutive quarter that T-Mobile has led the industry in year-over-year service revenue percentage growth. For full-year 2016, service revenues increased by 12% to $27.8 billion.
This marks the third consecutive year that T-Mobile has led the industry in service revenue percentage growth. Total revenues increased by 23% in Q4 2016 to $10.2 billion.
This marks the 14th time in the past 15 quarters that T-Mobile has led the industry in total revenue percentage growth. For full-year 2016, total revenues increased by 16% to $37.2 billion. This marks the third consecutive year that T-Mobile has led the industry in total revenue percentage growth.
Branded postpaid phone Average Revenue per User (ARPU) was $48.37 in Q4 2016, up 0.7% from Q4 2015. For full-year 2016, branded postpaid phone ARPU was $47.47, down 0.4% from 2015.
Net income increased by 31% year-over-year in Q4 2016 to $390 million. For full-year 2016, net income increased by 99% to $1.5 billion.
Excluding spectrum gains, the year-over-year and full-year growth in net income was 84% and 50%, respectively. Net income, excluding spectrum gains, as a percentage of service revenue was 3.4% in 2016, up from 2.6% in 2015. Diluted Earnings per share (EPS) increased by $0.11 year-over-year in Q4 2016 to $0.45.
The after-tax impact on EPS of spectrum gains was $0.10 in Q4 2015. For full-year 2016, diluted EPS increased by $0.87 to $1.69, up 106% from 2015. The after-tax impact on EPS of spectrum gains was $0.62 in 2016 and $0.12 in 2015.
Adjusted EBITDA increased by 12% year-over-year in Q4 2016 to $2.5 billion.
For full-year 2016, Adjusted EBITDA increased by 41% to $10.4 billion.
Excluding spectrum gains, the year-over-year and full-year growth in Adjusted EBITDA was 19% and 32%, respectively.
Adjusted EBITDA margin, excluding spectrum gains, was 34% in 2016, up from 29% in 2015
Cash capital expenditures reflect the company’s continued investment in the expansion of its 4G LTE network.
In Q4 2016, cash capital expenditures, excluding capitalized interest, were $0.8 billion.
Cash capital expenditures included capitalized interest of $71 million in Q4 2016, $17 million in Q3 2016 and $50 million in Q4 2015.
For full-year 2016, cash capital expenditures, excluding capitalized interest, were $4.6 billion, up from $4.5 billion in 2015. Cash capital expenditures included capitalized interest of $142 million and $246 million, respectively.
Net cash provided by operating activities was $1.6 billion in Q4 2016, a decrease of $631 million year-over-year.
For full-year 2016, net cash provided by operating activities was $6.1 billion, an increase of $721 million from 2015.
Free cash flow decreased $59 million to $743 million in Q4 2016. For full-year 2016, free cash flow increased $743 million to $1.4 billion. ■