Latest news with #telecom
CNA
an hour ago
- Business
- CNA
T-Mobile boosts subscriber forecast on demand for premium wireless plans
T-Mobile raised its annual forecast for postpaid net customer additions on Wednesday and added more wireless subscribers than expected in the second quarter, signaling steady demand for the telecom giant's top-tier mobile services. Its shares shot up 5 per cent in extended trading. The carrier now expects to add between 6.1 million and 6.4 million subscribers in 2025, compared with its prior projection of 5.5 million to 6 million additions. T-Mobile's postpaid Experience plans, launched in April, have resonated well with customers. These plans bundle streaming services such as Netflix and Apple TV+ and come with a five-year price guarantee. "About 60 per cent of the new accounts that join us are taking the Experience More and Experience Beyond plan," Jon Freier, president of T-Mobile's Consumer Group, told Reuters. The plans also include the carrier's satellite service T-Satellite that was made available to its own users and those of rivals Verizon and AT&T earlier on Wednesday. The carrier's aggressive promotions and add-on perks have helped it maintain an edge over rivals and increase market share. T-Mobile added 830,000 postpaid phone customers in the second quarter, surpassing FactSet estimates of 700,300 additions. It also reached a deal to sell its entire portfolio of 800 megahertz licenses to private investment firm Grain Management for $2.9 billion in cash and all of Grain's 600 MHz spectrum licenses. The Bellevue, Washington-based company plans to close its $4.4 billion acquisition of regional wireless carrier United States Cellular on August 1, CEO Mike Sievert said on a post-earnings call, after the U.S. Federal Communications Commission approved it earlier in July. T-Mobile, the last among the big three U.S. telecom carriers to report results, posted second-quarter total revenue of $21.13 billion, beating analysts' estimates of $21.02 billion, according to data compiled by LSEG.
Yahoo
an hour ago
- Business
- Yahoo
T-Mobile CEO: here's how we are scoring wins against Verizon and AT&T
T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. T-Mobile CEO Mike Sievert told me on Yahoo Finance the company's steady value messaging is helping it to gain market share. The company lifted its full-year adjusted operating profit guidance. It also hinted at $1.5 billion in cash tax savings in 2026 from the new Trump tax bill. Sievert says the company will allocate the capital accordingly, not ruling out more stock buybacks. Shares rose 6% in after-hours trading. "T-Mobile remains a top idea based on 1) strong medium-term financial guidance with upside to estimates as it closes pending acquisitions (USM deal close expected August 1st), 2) continued postpaid phone share gains (Top 100 markets, SMRA, and Enterprise), and 3) robust capital returns of up to $50 billion through 2027 (with $20 billion of "flex")," JPMorgan analyst Sebastiano Petti said. Read more: Live coverage of corporate earnings Earnings analysis: Beats and more beats Net sales: +6.9% year over year to $21.1 billion vs. estimate of $21.01 billion Adjusted EPS: +14% year over year to $2.84 vs. estimate of $2.69 Postpaid net additions: 1.7 million vs. estimate of 1.3 million Q2 AT&T: +410,000 Q2 Verizon: -51,000 Postpaid churn: 0.90% vs. 0.86% estimated What else caught our attention: Full-year forward guidance Postpaid net customer additions are expected to be between 6.1 million and 6.4 million. Prior guidance was for an increase of 5.5 million to 6 million. Adjusted operating profits are seen in the range of $33.3 billion to $33.7 billion. Prior guidance was for a range of $33.2 billion to $33.7 billion. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Phone Arena
2 hours ago
- Business
- Phone Arena
T-Mobile reports record-breaking Q2 earnings and the stock soars
For those thinking that the T-Mobile train is slowing, better guess again. The carrier just reported that it had 830,000 postpaid phone net customer additions during the second quarter. This financial category is considered the gold standard (dare I use the word) metric that Wall Street looks at to determine the underlying strength of wireless firms. It was a record-setting performance for T-Mobile as it added more postpaid phone net customers during any second quarter in T-Mobile 's history, and it led the industry as well. Postpaid net customer additions of 1.7 million were also a second quarter record for T-Mobile , and that performance also led the industry. T-Mobile reported 318,000 postpaid net account additions, up 6% year-over-year best in the industry. The report also mentioned that T-Mobile had 5G broadband net customer additions of 454,000. That was a 12% gain year-over-year and was, repeat after me, the best in the industry. Postpaid churn for the quarter was .90%, a slight improvement from the .91% reported for Q1. T-Mobile reported service revenue of $17.4 billion during the three months, which was up an industry best 6% on an annual basis. What drove the stock much higher after hours was the record net profits of $3.2 billion announced by the company, up a stunning 10% year-over-year. Diluted earnings per share, which assume the conversion of all convertible debt to equity, came in at $2.84. That is up 14% year-over-year and is a record for any second quarter in T-Mobile 's history. The carrier's CEO, Mike Sievert, said, " T-Mobile crushed our own growth records with the best-ever total postpaid and postpaid phone nets in a Q2 in our history. T-Mobile is now America's Best Network. When you combine that with the incredible value that we have always been famous for, it should surprise no one that customers are switching to the Un-carrier at a record pace. These durable advantages enabled us to once again translate customer growth into financial growth, with the industry's best service revenue growth by a wide mile and record Q2 Adjusted Free Cash Flow." T-Mobile also reported that it had 39,000 prepaid net customer additions during Q2. Those customers are a highly fickle group ready to follow the lowest pricing. That's why prepaid churn is typically higher than postpaid churn. For Q2, T-Mobile 's prepaid churn was 2.65%. The company said that for 2025, it expects postpaid net customer additions to be between 6.1 million and 6.4 million. That's an increase from previous guidance calling for 2025 to show an increase between 5.5 million to 6.0 million. This estimate includes a forecast of 2.95 million to 3.10 million postpaid phone net customer additions during 2025. These figures are another reason why the stock took off after the report was released. Speaking of the stock, after closing the regular trading session at $233.93, up 68 cents for the day, in after-hours trading, the shares soared $13.71 or 5.9% higher at $247.64.
Yahoo
2 hours ago
- Business
- Yahoo
T-Mobile dials up big earnings beat as it bests Verizon, AT&T in new customers
T-Mobile (TMUS) dialed up a big second quarter against the backdrop of heightened competition for new customers with rivals Verizon (VZ) and AT&T (T). The telecom giant easily beat analyst estimates on Wednesday after market close. It gained the most net new customers in the second quarter compared to its competitors. This comes as it leaned into its value messaging by releasing a five-year price lock on phone plans in April. The company lifted its full-year adjusted operating profit guidance. Shares rose 6% in after-hours trading. "T-Mobile remains a top idea based on 1) strong medium-term financial guidance with upside to estimates as it closes pending acquisitions (USM deal close expected August 1st), 2) continued postpaid phone share gains (Top 100 markets, SMRA, and Enterprise), and 3) robust capital returns of up to $50 billion through 2027 (with $20 billion of "flex")," JPMorgan analyst Sebastiano Petti said. Read more: Live coverage of corporate earnings Earnings analysis: Beats and more beats Net sales: +6.9% year over year to $21.1 billion vs. estimate of $21.01 billion Adjusted EPS: +14% year over year to $2.84 vs. estimate of $2.69 Postpaid net additions: 1.7 million vs. estimate of 1.3 million Q2 AT&T: +410,000 Q2 Verizon: -51,000 Postpaid churn: 0.90% vs. 0.86% estimated What else caught our attention: Full-year forward guidance Postpaid net customer additions are expected to be between 6.1 million and 6.4 million. Prior guidance was for an increase of 5.5 million to 6 million. Adjusted operating profits are seen in the range of $33.3 billion to $33.7 billion. Prior guidance was for a range of $33.2 billion to $33.7 billion. Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 hours ago
- Business
- Yahoo
T-Mobile raises forecast for annual subscriber additions
(Reuters) -T-Mobile raised its annual forecast for postpaid net customer additions on Wednesday and added more wireless subscribers than expected in the second quarter, signaling steady demand for the telecom giant's top-tier mobile services. Shares of the Bellevue, Washington-based company rose 3.5% in extended trading. The carrier now expects to add between 6.1 million and 6.4 million subscribers in 2025, compared with its prior projection of 5.5 million to 6 million additions. Telecom operators in the U.S. have boosted their plans with attractive trade-in deals and price guarantees to fend off competition as they grapple for a shrinking pool of new users. T-Mobile's postpaid Experience plans, which bundle streaming services such as Netflix and Apple TV+, come with a five-year price guarantee for customers. Its aggressive promotions and add-on perks have helped the company maintain an edge over rivals and increase its market share. It added 830,000 postpaid phone customers in the second quarter, surpassing FactSet estimates of 700,300 additions. T-Mobile, the last among the big three U.S. telecom carriers to report results, posted second-quarter total revenue of $21.13 billion, beating analysts' estimates of $21.02 billion, according to data compiled by LSEG. Rival AT&T beat quarterly profit estimates on Wednesday and added more wireless subscribers than expected, while Verizon raised the lower end of its annual profit forecast on Monday.
