The wireless carrier net additions handily surpassed the new subscriber tally from Verizon and AT&T. T-Mobile reported second quarter net income of $978 million, or 78 cents a share, on revenue of $20 billion, up 13% from a year ago. Wall Street was expecting T-Mobile to report second quarter revenue of $19.34 billion with non-GAAP earnings of 53 cents a share.
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T-Mobile continues to gain share as the big three carriers in the US battle for subscribers with phone promotions. T-Mobile added 627,000 postpaid phone net additions and postpaid accounts of 349,000. In addition, T-Mobile said that its integration of Sprint if fueling results. About 80% of Sprint traffic is now carried on the T-Mobile network and a third of the customers have been moved over. T-Mobile also raised its 2021 merger synergies outlook. Mike Sievert, CEO of T-Mobile, said it is benefiting from its 5G network and unlimited plans. T-Mobile ended the quarter with 104.8 million subscribers. On a conference call with analysts, Sievert took a few jabs at Verizon and AT&T and said that its 5G reach is extending into enterprises.
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By the numbers for the second quarter:
Postpaid net customer additions were 1.3 million with postpaid phone net additions of 627,000. Service revenue was $14.49 billion compared to $13.2 billion a year ago. T-Mobile expects merger synergies of $2.9 billion to $3.2 billion in 2021. That sum includes $1.35 billion to $1.5 billion in sales, general and administrative costs. Postpaid Phone ARPU was $47.61 in the second quarter, down from $47.99 a year ago. Extended range 5G now covers 305 million points of presence. Mid-band and mmWave 5G covers 165 million points of presence.
As for the outlook, T-Mobile said it expects postpaid net customer additions of 5 million to 5.3 million for 2021 with free cash flow of $5.2 billion and $5.5 billion.
