Post Earnings Coverage as T-Mobile Subscribers Base Boost Q3 Results

Upcoming AWS Coverage on BCE, Inc. Post-Earnings Results

LONDON, UK / ACCESSWIRE / November 1, 2016 / Active Wall St. announces its post-earnings coverage on T-Mobile US, Inc. (NASDAQ: TMUS). The company reported its financial results for the third quarter fiscal 2016 (Q3 FY16) on October 24, 2016. The Bellevue, Washington-based company’s total revenues rose 17.8% y-o-y and its net income surged 165% y-o-y in the reported quarter; beating analysts’ estimates. Register with us now for your free membership at: http://www.activewallst.com/register/.

One of T-Mobile US’ competitors within the Telecommunications Equipment space, BCE, Inc. (NYSE: BCE), has announced the release of its fiscal Quarter ending Sep 2016 results on November 03rd, 2016. AWS will be initiating a research report on BCE, Inc. in the coming days.

Today, AWS is promoting its earnings coverage on TMUS; touching on BCE. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=TMUS

http://www.activewallst.com/registration-3/?symbol=BCE

Earnings Reviewed

During Q3 FY16, T-Mobile reported total revenue of $9.25 billion, which came in above $9.22 billion recorded at the end of Q3 FY15. The company’s quarterly total revenue numbers outperformed Wall Street’s expectations of $9.44 million. Furthermore, total services revenue surged 13.2% y-o-y to $7.13 billion in Q3 FY16 from $6.89 billion recorded in Q3 FY15.

The wireless telecom company’s net income attributable to common stockholders came in at $353 million, or $0.42 per diluted common share, in Q3 FY16 compared to $125 million, or $0.15 per diluted common share, in the prior year’s quarter. Market analysts had expected the company to report EPS of $0.22 per diluted share for the reported quarter.

In Q3 FY16, the company added 2.0 million total net customers, a 14th consecutive quarter with over 1 million net increases in customers. T-Mobiles’ postpaid customer-base also rose by 851,000, as the company introduced new T-Mobile ONE plans. Post launch of Apple Inc.’s new iPhone 7, the company’s branded prepaid customer migrations to postpaid plans also help increase the postpaid subscriber-base. Additionally, net new prepaid subscribers also surged by 684,000, which was the second best quarterly performance in the company’s history.

Operating Metrics

For Q3 FY16, the mobile communication service provider company’s operating income came in at $989 million compared to $513 million in the year ago period. In Q3 FY16, adjusted EBITDA margin was $2.63 billion, or 37% of services revenues, versus $1.91 billion, or 30% of services revenues reported in the year ago quarter.

T-Mobile’s branded postpaid phone Average Revenue per User (ARPU) stood at $48.15 in Q3 FY16, up 2.2% sequentially and generally stable on y-o-y basis. The company’s branded prepaid ARPU also increased from $37.46 in Q3 FY15 to $38.01 in Q3 FY16.

In Q3 FY16, Branded postpaid phone reduced to 1.32% for 1.46% in Q3 FY15. Branded prepaid churn also declined to 3.83% in Q3 FY16 from 4.09% in the year ago period.

Business-Segment

During the quarter ended September 30, 2016, branded postpaid phone service revenues came in at $4.45 billion compared to $4.03 billion in the year ago period. Total billings for branded postpaid customers were $6.39 billion versus $5.64 million in Q3 FY15. The company had 33.23 million of total branded postpaid customers in the reported quarter compared to 30.40 million in the year ago quarter. Additionally, branded postpaid average billing per user (ARBU) rose to $63.38 in Q3 FY16 from $62.96 in Q3 FY15.

T-Mobile’s branded prepaid segment generated revenue amounting to $2.18 billion, which was above last year’s recorded revenue of $1.89 billion. In Q3 FY16, T-Mobile’s average branded prepaid subscriber-base was 19.13 million compared to 16.85 million in Q3 FY15.

Cash Flow & Balance Sheet

In the three quarters ended on September 30, 2016, T-Mobile generated $1.74 billion of cash from operations compared to $1.53 billion in the previous year comparable period. In Q3 FY16, free cash flow came in at $581 million compared to $411 million in prior year’s quarter. The company had $5.35 billion of cash and cash equivalents as on September 30, 2016, compared to $4.58 billion at the close of books on December 31, 2015.

The company’s net-term debt stood at $22.40 billion as on September 30, 2016, compared to $19.51 million recorded on September 30, 2015. Furthermore, the company’s net debt to adjusted EBITDA ratio fell to 2.2 as of September 30, 2016, from 2.8 as on September 30, 2015.

Guidance

In its outlook for full-year FY16, T-Mobile expects to drive customer momentum further along with robust growth in adjusted EBITDA and free cash flow. The company’s management forecasts FY16 adjusted EBITDA to be in the range of $10.2 billion to $10.4 billion, updating from the previous guidance range of $9.8 billion to $10.1 billion. The company now expects branded postpaid net customer additions to be between 3.7 million and 3.9 million, up from previously provided range of 3.4 million to 3.8 million.

Stock Performance

On Monday, T-Mobile US’s stock closed the trading session at $49.73, climbing 0.77% from its previous closing price of $49.35. A total volume of 3.53 million shares have exchanged hands, which was higher than the 3-month average volume of 3.29 million shares. The company’s stock price advanced 6.44% in the last month, 6.24% in the past three months, and 25.39% in the previous six months. Furthermore, on a year to date basis, the stock surged 27.12%. Shares of the company have a PE ratio of 31.86. The stock currently has a market cap of $41.06 billion.

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