T-Mobile adds 1.5 million net customers in second quarter
T-Mobile swung to a second-quarter profit as the mobile services provider added 1.5 million total net customers during the period, which boosted revenue for many of the company’s business segments.
Overall, T-Mobile (TMUS) overall reported net income of $391 million, or 48 cents a share, compared to a prior-year loss of $54 million, or 2 cents a share. Total revenue jumped 15% to $7.19 billion. Analysts surveyed by Bloomberg had anticipated 9 cents in profit on $7.04 billion in revenue.
T-Mobile has now added over 1 million total net customers for five straight quarters, increases the company has claimed makes it the fastest growing wireless company in the U.S. The strong results from T-Mobile come a day after peer, and potential merger partner, Sprint (S) reported a net loss of 220,000 customers across the company’s entire platform.
Rumors have swirled that Sprint and T-Mobile are considering an estimated $32 billion merger. That deal would combine the third- and fourth-largest wireless phone operators in the U.S., a combination that would create a stronger rival to AT&T (T) and Verizon (VZ) but also potentially lead to regulatory concerns as consumers will have fewer options.
The Wall Street Journal this week mulled why the companies haven’t made an official announcement, even though many key facts are known. WSJ, citing people familiar with the matter, says part of the hold up is Sprint and T-Mobile are working on a firm plan to address regulator’s concerns.