T-Mobile delivers mixed Q3 results, adds 1.3M postpaid net additions

T-Mobile published mixed third quarter financial results on Tuesday but raised its 2021 guidance. The wireless carrier also boasted 1.3 million postpaid net additions in the quarter. Its total customer count increased to 106.9 million.

T-Mobile’s net income in Q3 came to $691 million, with diluted earnings per share of 55 cents. Total revenues increased 2% year-over-year to $19.6 billion. 

Analysts were expecting earnings of 52 cents per share on revenue of $20.18 billion. 

“Another quarter of amazing results shows that customers love T-Mobile’s unique combination of the best value, best network and best experience,” CEO Mike Sievert said in a statement. “With our Magenta business firing on all cylinders and our Sprint integration ahead of schedule, we are well positioned for the future — and poised to continue winning with assets and a formula for growth that is differentiated from the other wireless players. We just keep exceeding our own targets on growth, profit and synergies — and we have no plans to slow down now.” 

T-Mobile added 673,000 postpaid phone net additions in Q3 and 268,000 postpaid accounts.

Service revenue was a record $14.7 billion, growing more than 4% year-over-year. Postpaid service revenues growth of 6% year-over-year.

The company also reported progress on the Sprint integration. About 90% of Sprint customer traffic is now carried on the T-Mobile network, and about 53% of Sprint customers have been fully moved over. 

The company’s Extended Range 5G now covers 308 million people and 1.7 million square miles. 

Last month, T-Mobile’s wireless competitors posted their own strong quarterly results. AT&T said it added 928,000 postpaid phone net additions in the quarter, making Q3 AT&T’s strongest showing in 10 years. Verizon similarly reported better-than-expected third quarter results, adding 699,000 retail post-paid net subscribers.  

As for the outlook, T-Mobile said it expects postpaid net customer additions between 5.1 million and 5.3 million, an increase from prior guidance of 5.0 million to 5.3 million.