4Q2016 and 2016 Annual Earnings
T-Mobile recently reported 4Q2016 and 2016 annual earnings, and proves once again that the magenta carrier is a machine that simply can’t be stopped.
According to the results, T-Mobile added 2.1 million customers in 4Q2016, making it the 15th quarter in a row where the company has added over a million subscribers. For the year 2016, T-Mobile added a total of 8.2 million customers bringing the total subscriber count to 71.5 million and marking the 3rd year in a row of adding more than 8 million customers.
Looking at total branded postpaid additions, T-Mobile added 933,000 in 4Q which is significantly more than its competitors Sprint, Verizon, and AT&T, which were only able to attract 368,000, 167,000, and a net loss of 67,000 customers respectively.
With all these new customers, what does this do for T-Mobile’s bottom line? Wonders. Looking at the numbers, T-Mobile generated $37.2 Billion (+16%) in revenues for 2016 with the 4Q generating $10.2 Billion (+23%). This led to profits of $1.5 Billion (+99%) in 2016 with the 4Q generating $390 Million (+31%).
Will the momentum fall? T-Mobile doesn’t think so. Guidance for 2017 for branded postpaid net additions is expected to increase to 2.4 to 3.4 million with net cash provided by operating activities to increase by 15-18% CAGR over the next three years.