Can’t be more excited to join the New T- Mobile. Don’t hesitate switch now, we WILL be your wireless carrier for the foreseeable future! @JonFreier @TracyNolan @TMobile #network #TeamMagenta pic.twitter.com/dHBTZsetmI— Trenton Rackley (@trentrackley) April 8, 2020
When T-Mobile reported results after markets ended Thursday in the second quarter of 2020, the telecommunications carrier reported a revenue per share of $0.09, at $17.7 trillion in revenues. The company reported $1.09 in EPS on $11.0 billion in sales in the same time period last year. The results in the second quarter also compare the EPS consensus projection of $0.07 billion and income of $17.6 billion.
The company became the second-largest wireless provider in the country in the quarter, according to T-Mobile, based on a total of 98,3 million customers. In the preceding quarter of 2019, T-Mobile reported 65.98 million customers, but the sum did not include customers gained from a Sprint merger concluded on 1 April this year.
The second quarter was reported by Verizon Communications to 119.9 million and AT&T to 92.9 million.
Net customer adds amounted to 1.25 million, including 253 thousand customer net post payment (contract) additions and 859,000 additional net adds, mainly commercial customers. The net customer add-ons prepayment amounted to 133 thousand. Customers' churn for post payment was 0.8%, and prepayment customer churn amounted to 2.81%.
Even the most optimistic analyst estimates for new customers were exceeded by 1,11 million total new post payments. Because T-Mobile did not deliver results pro forma, comparisons with last year reveal little and the financial estimates for the second trimester were largely informed.
T-Mobile anticipates net post payment customer increments to total between 1.7 million and 1.9 million in its second half of year outlook. EBITDA for the 6 months is forecast to amount to €12.4 billion to $12.7 billion, adjusted earnings before interest , taxes, depreciation and repayments (EBITDA).
The Company expects another 800 million to 1 billion dollars over the second half of the year, in addition to the combined and integrated costs of 798 million dollars in the second quarter. These costs will not be covered by the EBITDA adjusted.
Net operating cash for the quarter amounted to $777 million and the Sprint Merger interest rate swaps were settled at $2.3 billion. For the rest of the year, T-Mobile expects to receive $5.3 billion net cash from its operations at $5.7 billion.
Free cash flow is projected at $300 million to $500 million for the second half of the year. Free cash flow for the second quarter amounted to $1.4 billion without payment for paying the interest-rate swaps.
CEO Mike Sievert said that the company 'sets our sights on number 1,' and plans to achieve that by providing its customers with the most advanced 5G-network and 'the best value while making major moves to remedy and disrupt the customer's pain's problems.
Investors appear to think that T-Mobile is starting well. In the Friday premarket, shares traded up around 5% to $113.50, up from $63.50 to $111.58 over 52 weeks. The stock price target is $116.50 for consensus prices. No dividend is paid by T-Mobile.