Highlights of T-Mobile’s 2Q15 Earnings
Branded postpaid phone ARPU
In 2Q15, the branded postpaid phone ARPU (average revenue per user) was $48.19 for T-Mobile (TMUS), a 3.8% QoQ (quarter-over-quarter) increase from $46.43 in 1Q15 and a 2.3% YoY (year-over-year) decrease from $49.32 in 2Q14.
T-Mobile stated that its ARPU increased QoQ “primarily due to non-cash net revenue deferrals for Data Stash recognized in the first quarter of 2015. Year-over-year, the decrease was primarily due to dilution from continued growth of customers on Simple Choice plans and promotions targeting multiple phone lines, including the ‘4 for $100′ offer.”
Branded postpaid customers per account
In 2Q15, T-Mobile had 2.43 branded postpaid customers per account, compared to 2.39 at the end of 1Q15 and 2.23 at the end of 2Q14. The QoQ and YoY increases were primarily driven by service promotions targeting multiple phone lines and increased penetration of mobile broadband services.
Branded postpaid ARPA
In 2Q15, T-Mobile’s ARPA (average revenue per account) was $113.50, an increase of 5.1% compared to its 1Q15 ARPA of $108.01 and a 6% increase from its 2Q14 ARPA of $107.11. The company’s QoQ increase in ARPA was primarily due to non-cash net revenue deferral for Data Stash recognized in 1Q15, as well as an increase in the number of branded postpaid customers per account.
According to T-Mobile, its YoY increase was driven by “higher regulatory program revenues and increase in branded postpaid customers per account, partially offset by dilution from continued growth of customers on promotions targeting multiple phone lines, including the ‘4 for $100′ offer.”
Branded prepaid ARPU
In 2Q15, T-Mobile’s branded prepaid ARPU was $37.83, compared to $37.81 in 1Q15 and $37.16 in 2Q14. The prepaid ARPU for Sprint (S) and Verizon (VZ) stood at $27.81 and $42.37, respectively, in the same period
T-Mobile (TMUS) comprises 5.45% of the iShares US Telecommunications ETF (IYZ) and 0.10% of the iShares Russell 1000 Value ETF (IWD).
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