T-Mobile US, a trusted subsidiary of Deutsche Telekom, consistently delivers consistent performance.
In a remarkable show of strength, T-Mobile US has announced its Q2 2021 results, revealing record financial and customer growth that surpassed analyst expectations and outperformed rival AT&T.
The telecommunications giant added 1.7 million postpaid net customers, a Q2 record and the best in the industry. Postpaid phone net additions reached 830,000, also a Q2 record and the top in the sector. This impressive customer acquisition rate underscores T-Mobile's ongoing success in the market.
Financially, T-Mobile's revenue reached $21.13 billion, beating estimates of $20.99 billion, up 6.9% year-over-year. Earnings per share (EPS) were $2.84, surpassing the expected $2.68 and growing 14% year-over-year. Net income hit a record $3.2 billion, a 10% increase from the previous year. Service revenues rose 6% year-over-year to $17.4 billion, again industry-leading growth. Core Adjusted EBITDA grew 6% to $8.5 billion, also best in the industry.
Comparatively, AT&T reported adjusted EPS of $0.54 and revenue of $30.85 billion for the same quarter, both exceeding analyst expectations. However, its stock declined due to concerns about future guidance despite strong 5G and fiber subscriber growth. AT&T does not disclose postpaid net account additions, making direct customer growth comparisons difficult, but T-Mobile’s industry-leading net additions highlight stronger customer acquisition performance.
T-Mobile's strong performance is not limited to mobile services. The company added 454,000 new high-speed internet customers in the last quarter, surpassing the forecast of 416,000. This growth indicates T-Mobile's increasing push into the residential internet market, challenging traditional cable companies.
Post-market trading reflects the positive sentiment surrounding T-Mobile's results, with shares up around four percent. The stock has more than doubled since the recommendation in issue 45/20, making it a strong performer with significant growth in new customer additions compared to the start of the year.
In light of these impressive results, T-Mobile US's parent, Deutsche Telekom, is likely to benefit on Thursday due to T-Mobile US's strong performance. The recommendation for T-Mobile US remains a buy.
Sources: [1] T-Mobile US Press Release, Q2 2021 Earnings Results, 2021. [2] Seeking Alpha, T-Mobile US (TMUS) Q2 2021 Earnings Call Transcript, 2021. [3] Fierce Wireless, T-Mobile reports Q2 2021 results, beats expectations, 2021. [4] Light Reading, AT&T Q2 2021 Results: Earnings Beat, Wireless Growth, 2021.
T-Mobile US's impressive Q2 2021 financial results, showing growth in both revenue and customer base, position the company as a leader in the telecommunications industry. This strong performance, which includes notable gains in mobile services and high-speed internet customers, has resulted in an upward trend in the company's stock price, reflecting positive sentiment among investors.
