T-Mobile released its Q2 2022 results, turning in huge subscriber growth as a result of cheaper plans.
Once dead last among US carriers, T-Mobile has become a juggernaut in the industry. The company was already climbing fast before its acquisition of Sprint, but the merger gave it the subscriber growth and spectrum to truly become the powerhouse it currently is. If the company’s latest quarterly results are any indication, that trend isn’t changing anytime soon.
T-Mobile posted a gain of 723,000 postpaid phone subscribers and beat Verizon’s churn rate for the first time ever. “Churn” is the term for turnover within the wireless industry as customers switch from one carrier to another.
The company’s High Speed Internet division added 560,000 customers, the best in the industry for the third consecutive quarter. Meanwhile, overall net postpaid customer additions came in at 1.7 million, beating AT&T and Verizon combined and setting a company best for Q2.
The company’s services revenue grew 6% year-over-year, coming in at $15.3 billion.
T-Mobile posted an overall net loss of $108 million, or $0.09 per share, driven largely by the write-down related to a wired network the company inherited from its merger with Spring, as well as its recent settlement over the 2021 data breach. These factors combined to account for nearly $1 billion in higher operating costs.
Despite the additional costs, T-Mobile raised its 2022 guidance across the board, including raising its postpaid net customer additions guidance from 5.3 to 5.8 million for the year to between 6.0 million and 6.3 million.
“Our relentless focus on putting customers first delivered yet another outstanding quarter for T-Mobile with industry-leading postpaid and broadband customer growth, including our highest ever postpaid account adds in company history,” said Mike Sievert, CEO of T-Mobile. “This momentum fueled our growth strategy and allowed us to raise guidance across the board yet again — further proof that our commitment to addressing customer pain points in this challenging macro-economic environment is working.”