T-Mobile posted impressive Q2 financial results, which also revealed strong subscriber growth in the quarter.
On July 27, T-Mobile announced the quarterly financial results for the period ended June 30. The company outpaced rivals such as AT&T, Verizon Wireless and Sprint in the number of subscribers gained during the quarter.
T-Mobile added 646,000 mainstream phone connections during Q2 of 2016. Reports suggest that AT&T lost 180,000 mainstream phone connections during the same quarter, Verizon Wireless about 86,000 phones and Sprint added 173,000 new mainstream phone customers with a deep discounting strategy.
"We outperformed the competition again on every key metric, while delivering the best postpaid phone churn numbers in our history!" says John Legere, the CEO and President of T-Mobile. "Quarter after quarter this team continues to deliver results that are the best in the business despite the competition's best efforts to compete."
In total, the carrier added 1.9 million net customers during the quarter, which brings the network customer base to more than 67 million. The second quarter of 2016 was the 13th consecutive quarter in which the carrier has added more than 1 million customers to its network.
The company started the Un-carrier initiative in 2013 and since then T-Mobile has added more than 24 million new customers to its network.
In Q2 of this year, T-Mobile is the only carrier in the top four list to have posted wireless revenue of 13 percent, which has exceeded Wall Street estimation. AT&T's total wireless revenue fell 2.1 percent, Verizon's declined by 4 percent and Sprint by 0.2 percent during the same period.
T-Mobile has been successfully attracting customers with its promotions. The carrier announced T-Mobile Tuesdays in early June, which gave away free gifts as well as a free Domino's pizza to the network's subscribers.
Domino's received overwhelming demand for free pizza via the T-Mobile Tuesdays app. Some Domino's franchises got three to four times the number of orders for pizza than on a regular day because of the T-Mobile promotion. The high-demand for a free pizza from T-Mobile Tuesdays and the stress faced by Domino's franchises resulted in the pizza restaurant chain to withdraw from the promotion.
T-Mobile did not reveal how the promotion aided the company but it is likely that T-Mobile Tuesdays attracted many customers to the carrier.
T-Mobile had forecasted that its postpaid net new customers will increase between 3.2 million to 3.6 million. However, the company has now increased the estimation in the range of 3.4 million and 3.8 million.
T-Mobile's share price increased by 1.1 percent to $45.46 following its earnings call.
Photo: Mike Mozart | Flickr
