Mobile US notches another strong quarter

T-Mobile US

T-Mobile is targeting a Capex (capital expenditure) of $4.9 to $5.3 billion this year with a special focus on 5G networks.

Adjusted earnings of $2.7 billion, however, beat analysts' forecasts as the carrier reported that tax reform legislation impacted its net income and earnings levels by $2.2 billion. The results were achieved despite a lower contribution from equipment sales in the quarter, as people upgraded their handset less and on the back of more handset promotions. Profits of $2.7 billion for the quarter.

The company said its bottom line rose to $2.71 billion, or $3.11 per share. Net hurricane losses amounted to United States dollars 40 million for the quarter, and USD 130 million for the full year. T-Mobile says it now has 72.6 million total customers, after adding a total of more than 5.6 million customers over the past year.

Meanwhile, postpaid branded churn fell 10 basis points year-over-year to finish at 1.18 percent and branded prepaid churn finished at 4.00 percent, up 6 basis points year-over-year.

Of revenue that rose 5.1% to a record $10.76B, service revenues increased 7.1% to a best-ever $7.76B.

Total net adds came to 1.9M. The net cash from operating activities lifted nearly 30 percent to Dollars 8.0 billion and the free cash flow by over 90 percent to USD 2.7 billion.

The additional postpaid customers included 891,000 branded postpaid phones, and the company also reported 149,000 branded prepaid net additions and 1.9 million total net additions in the fourth quarter.

Net income grew YoY, too, to finish at $2.7 billion, which T-Mobile attributes to factors like the Tax Cuts Jobs Act and after-tax spectrum gains. The T-Mobile 4G network does not cover every single customer as it stands, but the ones it does serve it serves well. Branded postpaid net additions reached 1.072 million in the quarter.

In 2017, T-Mobile completed its fourth year of growing service revenues, posting 8 percent growth in 2017 as rivals including Verizon, AT&T and Sprint showed declines in their annual revenues. Finally, using its 600 MHz spectrum holdings, T-Mobile US will seek to deploy the country's first nationwide 5G network by 2020.

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