T-Mobile added a net total of 2.2 million customers in the first quarter, beating Wall Street’s expectations with $8.6 billion in revenue and $479 million in profit, or earnings of 56 cents a share.
The results, posted this morning, are the latest sign of momentum for the Bellevue, Wash.-based wireless company in its effort to challenge its larger competitors, AT&T and Verizon. The profit posted by T-Mobile in the quarter compares to a $63 million loss in the same quarter a year ago.
It’s the 12th consecutive quarter in which T-Mobile has added more than 1 million net customers. The customer additions this quarter included more than 1 million in branded postpaid customers, which represent a key measure of a wireless carrier’s health. These customers, who pay at the end of a billing period, typically have better credit than their prepaid peers and are considered more valuable.
T-Mobile’s total customer count climbed to 65.5 million with the latest additions.
Verizon, by comparison, reported 640,000 retail postpaid net additions in the first-quarter, and 112.6 million retail wireless connections, a 3.7 percent year-over-year increase. Verizon’s wireless business posted $22 billion in operating revenues and operating profit of $7.8 billion. AT&T releases earnings later today, and Sprint reports next week.
John Legere, T-Mobile’s outspoken and irreverent CEO, greeted the news with a series of tweets touting the numbers and targeting T-Mobile’s rivals.
2/ @ATT and @Verizon tried to buy out @TMobile customers, but we still TOOK THEIR customers and KEPT ours! pic.twitter.com/orw0PRT7iq
— John Legere (@JohnLegere) April 26, 2016
It’s early but I’m WIDE AWAKE because @TMobile earnings is today and we nailed it this Q. AGAIN! pic.twitter.com/FAvV0bvUB6
— John Legere (@JohnLegere) April 26, 2016
T-Mobile’s biggest downside has historically been its network coverage compared to its competitors, but the company is touting ongoing network improvements, saying that it now covers a population of 308 million people with its 4G LTE coverage.
