T-Mobile reports lowest ever Q4 postpaid phone churn, beats customer guidance for FY 2018
Jan 10, 2019
Preliminary Fourth Quarter 2018 Customer Highlights
- 2.4 million total net additions - best quarter ever
- 1.4 million branded postpaid net additions - best Q4 ever
- 1.0 million branded postpaid phone net additions - best Q4 in 4 years
- Lowest ever Q4 branded postpaid phone churn of 0.99%, down 19 basis points year-over-year
- 135,000 branded prepaid net additions
- 79.7 million customers in total at year-end 2018
Preliminary Full-Year 2018 Customer Highlights
- 7.0 million total net additions - accelerated year-over-year
- 4.5 million branded postpaid net additions - best in 3 years
- 3.1 million branded postpaid phone net additions - accelerated year-over-year
- 460,000 branded prepaid net additions
**Bellevue, Wash. – January 9, 2019 – **T-Mobile US (NASDAQ: TMUS) provided a preliminary view of key customer results for the fourth quarter and full-year 2018. The company posted its best quarter ever in total net customer additions of 2.4 million, delivered its best fourth quarter ever in branded postpaid net additions of 1.4 million and had record low fourth quarter postpaid phone churn of 0.99%. For the full year 2018, T-Mobile exceeded its customer guidance delivering 4.5 million branded postpaid net additions and showed that the Un-carrier’s momentum accelerated year-over-year. Since the launch of the Un-carrier movement in 2013, T-Mobile’s Un-carrier strategy has resulted in an increase in its customer base of more than 46 million - resulting in a total customer base of 79.7 million at the end of 2018.
“The T-Mobile team delivered our best customer results ever in Q4 2018 and we did it in a competitive climate while working hard to complete our merger with Sprint.” said John Legere, CEO of T-Mobile. “That's 23 quarters in a row where more than 1 million customers have chosen T-Mobile - along with a postpaid phone churn result that's below 1%. These customer results speak volumes about our company, our network and our brand!"Preliminary Fourth Quarter and Full-Year 2018 Customer Results
T-Mobile continued to deliver meaningful value to consumers in the fourth quarter of 2018 and the results again showed up in the company’s customer additions. Customers who join T-Mobile get access to a host of Un-carrier benefits that solve everyday pain points such as Unlimited rate plans, Netflix at no extra charge for qualifying customers on family plans, free international data roaming and texting in more than 210 countries and destinations, T-Mobile Tuesdays and the best customer service in the industry with T-Mobile’s Team of Experts - all on the nation’s fastest 4G LTE network. As a result, T-Mobile added 2.4 million total net customers in the fourth quarter - its best quarter ever, bringing its total customer count to 79.7 million at year-end 2018. This marks the 23rd consecutive quarter that T-Mobile has generated more than 1 million total net customer additions. Total customer additions in 2018 were 7.0 million, an acceleration year-over-year, marking the fifth consecutive year that T-Mobile added more than 5 million net customers.
T-Mobile also saw continued strength on the postpaid side, reporting branded postpaid net customer additions of 1.4 million in the fourth quarter of 2018. This was T-Mobile's best fourth quarter branded postpaid net customer addition performance to date and represents an acceleration both quarter-over-quarter and year-over-year. Branded postpaid phone net customer additions were 1.0 million in the fourth quarter of 2018 - the company's best quarterly performance in 4 years. For full-year 2018, the company added 4.5 million branded postpaid net customers, which accelerated year-over-year and exceeded the top end of the increased guidance range for branded postpaid net customer additions of 3.8 to 4.1 million.
Branded prepaid net customer additions were 135,000 in the fourth quarter of 2018 and 460,000 for full-year 2018. Migrations to branded postpaid plans reduced branded prepaid net customer additions by approximately 160,000 in the fourth quarter of 2018 and 585,000 for full-year 2018.
Wholesale net customer additions were 909,000 in the fourth quarter of 2018 and 2.1 million for full-year 2018.
Not only are customers coming to T-Mobile, but they are also staying longer. T-Mobile posted its best-ever fourth quarter branded postpaid phone churn result this quarter showing the power of the company’s value proposition. Branded postpaid phone churn was 0.99% in the fourth quarter of 2018, down 19 basis points year-over-year and down 3 basis points sequentially. This was the company's second-lowest branded postpaid phone churn result ever.
Branded prepaid churn was 3.99% in the fourth quarter of 2018, down 1 basis point year-over-year and down 13 basis points sequentially.
Read the full release here.
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