This morning, T-Mobile released its earnings for the first quarter of 2022. During the quarter, the carrier had 589,000 net postpaid phone customer additions. For companies like T-Mobile, this is arguably the most important quarterly metric. At the same time, the wireless provider reported postpaid net customer additions of 1.3 million which not only topped the industry, but it also was the best first quarter increase for the carrier in eight years.
T-Mobile continues to outperform its peers in important growth metrics
Prepaid net customer additions for the quarter came to 62,000 while prepaid churn came in at 2.67%. Prepaid churn is traditionally higher than postpaid churn. T-Mobile now has 109.5 million customers overall which is a gain of 5.9% year-over-year.
T-Mobile is the 5G leader in the US at this stage
T-Mobile CEO Mike Sievert said, “T-Mobile continues to be the growth leader in this industry, with another beat and raise quarter that delivered front-of-the-pack postpaid, new account, and broadband customer results. Only the Un -carrier’s unparalleled network leadership in the 5G era has enabled us to give customers the best network and best value without compromise, and effectively solve one of the most prevalent pain points in the wireless industry.”
For the quarter, service revenue of $15.1 billion was an increase of 7% on a year-over-year basis. Postpaid service revenue was up 9%, leading the industry. Net income weighed in at $713 million with diluted earnings per share at 57 cents. The latter is a 23% decline from the 74 cents per share figure reported for 2021’s first quarter.
T-Mobile’s 5G footprint is four times bigger than Verizon’s
T-Mobile’s Ultra Capacity 5G network, which combines its faster mid-band service and mmWave signals, covers 85% of T-Mobile customers and 225 million Americans. Ultra Capacity 5G delivers download data speeds in the range of 200Mbps and faster.
For this year, T-Mobile increased its guidance and is now looking for postpaid net customer additions to be between 5.3 million and 5.8 million, up from its previous estimate of a 5.0 to 5.5 million increase.
Wall Street loved the report as the stock is up $6.07 or 4.86% to $131.03 following the release of Q1 earnings. The 52-week high is $150.20.