T-Mobile announces Q2 results

T-Mobile US, Inc. (NASDAQ: TMUS) delivered record service revenue, strong net income, record Adjusted EBITDA and record-low postpaid phone churn for the second quarter of 2017, the company said.

Total net customer additions were 1.3 million in Q2 2017, bringing our total customer count to 69.6 million.

Branded postpaid net customer additions were 817,000 in Q2 2017. Branded postpaid phone net customer additions were 786,000 in Q2 2017, driven by strong customer response to Un-carrier initiatives, including a best ever share of branded postpaid phone net additions from our business channel, @Work and a successful launch of our DIGITS product.

Q2 2017 is expected to mark the 14th consecutive quarter that T-Mobile has led the industry in this category. Branded postpaid phone churn was a record low of 1.10% in Q2 2017, down 8 basis points from Q1 2017 and down 17 basis points from Q2 2016.

Branded prepaid net customer additions were 94,000 in Q2 2017, down due to lower gross additions from increased competitive activity in the marketplace. MetroPCS continues to perform strongly, but we chose not to respond to irrational offers from some of our competitors during the second quarter. Branded prepaid churn was 3.91% in Q2 2017, down 10 basis points from Q1 2017 and flat compared to Q2 2016.

The amortized imputed discount on EIP receivables previously recognized as Interest income has been retrospectively reclassified as Other revenues. The effects of this change in accounting principle are provided in the financial tables.

Service revenues increased 8% in Q2 2017 to a quarterly record-high of USD 7.4 billion. This is expected to mark the 13th quarter in a row that T-Mobile has led the industry in year-over-year service revenue percentage growth. Total revenues increased 10% in Q2 2017 to USD 10.2 billion. This is expected to mark the 16th time in the last 17 quarters that T-Mobile has led the industry in total revenue percentage growth.