We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
T-Mobile US: Sneak Peek into Q3, Subscriber Growth High
Read MoreHide Full Article
U.S. national wireless carrier T-Mobile US Inc. (TMUS - Free Report) recently allowed us a peek into its third-quarter 2016 earnings report, which is scheduled to release this October. The company claims to witness stronger subscriber addition in the upcoming quarter in compared to its consumer gain reported in the second quarter of 2016.
Reports state that the company has added 753,000 branded postpaid phone customers since Jul 1, 2016, compared to 646,000 customers in the second quarter of 2016. T-MobileUShas also made to reach out to 650,000 prepaid net customers till date for the third quarter of 2016.
T-Mobile US further declared plans of issuing complete estimates for full-year 2016 growth and financials during its third-quarter 2016 report release.
Reasons Driving Subscriber Growth
T-Mobile US believes that its innovative network expansion methodologies have helped drive substantial consumer growth. In order to lure customers from competitors, T-Mobile US has been launching several low-priced service plans through varied promotional and advertising schemes for individual consumers as well as small business entities. In relation to this, T-Mobile US announced a ‘Stock Up’ plan as part of its ‘Get Thanked’ program which involved the granting of a stock to postpaid customers. In Aug 2016, T-Mobile US came up with unlimited offerings – ‘T-Mobile One’ plan – for $70 a month, replacing its prior $95 unlimited plan. This closely follows Sprint Corp.’s (S - Free Report) launch of ‘Unlimited Freedom’ plan at $60 instead of $75 a month, AT&T Inc.’s (T - Free Report) rate revision from $20 for 300 MB to $30 for 1 GB for the smallest data plan and Verizon Communications Inc.’s (VZ - Free Report) rate hike by $5 to $10 per data plan.
Several analysts estimate that the company has managed to gain customers from rivals – the other three major U.S. wireless carriers. Figures indicate that more than 250,000 customers are from Verizon, almost 400,000 from AT&T and 300,000 from Sprint in the third quarter.
Recent Developments
T-Mobile US is also forging ahead with its 5G expansion plans wherein it has started higher speed tests with major equipment partners – Ericsson (ERIC - Free Report) and Nokia Corporation (NOK - Free Report) .
Conclusion
Although the company has boosted its top line by adding customers, T-Mobile US is yet to go a long way to check its bottom line figures. The costs incurred to gain customers and grow revenues has not rewarded its shareholders. Instead, reports state that the company’s stock declined 2.6% to $44.74.
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
T-Mobile US: Sneak Peek into Q3, Subscriber Growth High
U.S. national wireless carrier T-Mobile US Inc. (TMUS - Free Report) recently allowed us a peek into its third-quarter 2016 earnings report, which is scheduled to release this October. The company claims to witness stronger subscriber addition in the upcoming quarter in compared to its consumer gain reported in the second quarter of 2016.
Reports state that the company has added 753,000 branded postpaid phone customers since Jul 1, 2016, compared to 646,000 customers in the second quarter of 2016. T-MobileUShas also made to reach out to 650,000 prepaid net customers till date for the third quarter of 2016.
T-Mobile US further declared plans of issuing complete estimates for full-year 2016 growth and financials during its third-quarter 2016 report release.
Reasons Driving Subscriber Growth
T-Mobile US believes that its innovative network expansion methodologies have helped drive substantial consumer growth. In order to lure customers from competitors, T-Mobile US has been launching several low-priced service plans through varied promotional and advertising schemes for individual consumers as well as small business entities. In relation to this, T-Mobile US announced a ‘Stock Up’ plan as part of its ‘Get Thanked’ program which involved the granting of a stock to postpaid customers. In Aug 2016, T-Mobile US came up with unlimited offerings – ‘T-Mobile One’ plan – for $70 a month, replacing its prior $95 unlimited plan. This closely follows Sprint Corp.’s (S - Free Report) launch of ‘Unlimited Freedom’ plan at $60 instead of $75 a month, AT&T Inc.’s (T - Free Report) rate revision from $20 for 300 MB to $30 for 1 GB for the smallest data plan and Verizon Communications Inc.’s (VZ - Free Report) rate hike by $5 to $10 per data plan.
Several analysts estimate that the company has managed to gain customers from rivals – the other three major U.S. wireless carriers. Figures indicate that more than 250,000 customers are from Verizon, almost 400,000 from AT&T and 300,000 from Sprint in the third quarter.
Recent Developments
T-Mobile US is also forging ahead with its 5G expansion plans wherein it has started higher speed tests with major equipment partners – Ericsson (ERIC - Free Report) and Nokia Corporation (NOK - Free Report) .
Conclusion
Although the company has boosted its top line by adding customers, T-Mobile US is yet to go a long way to check its bottom line figures. The costs incurred to gain customers and grow revenues has not rewarded its shareholders. Instead, reports state that the company’s stock declined 2.6% to $44.74.
ROGERS COMM CLB Price
ROGERS COMM CLB Price | ROGERS COMM CLB Quote
T-Mobile currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Confidential from Zacks
Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>