T-Mobile earnings Q1 2018

Brendan McDermid | Reuters

T-Mobile CEO John Legere speaks on the floor of the New York Stock Exchange, April 30, 2018.

T-Mobile reported quarterly earnings and revenue that beat analysts’ expectations on Tuesday. Shares edged up close to 1 percent after the announcement.

Here’s how the company did compared with what Wall Street expected:

• Earnings: 78 cents per share vs. 71 cents per share forecast by Thomson Reuters
• Revenue: $10.46 billion vs. $10.35 billion forecast by Thomson Reuters
• Net adds: 1.4 million vs. 1.27 million, forecast by StreetAccount

T-Mobile reported first quarter earnings and revenue that beat analyst expectations. Revenue grew by 8.8 percent year-over year, while earnings fell by about 2.5 percent.

T-Mobile’s first quarter report marked its fifth year and 20th consecutive quarter netting more than 1 million customers. The telecom company also marked record low churn, or customer turnover. T-Mobile reported 1.07 percent branded postpaid phone churn, down 11 basis points from the 1.18 percent churn reported in the year-ago quarter. The results surpassed the street’s expectations of 1.16 percent churn.

Despite the uptick in customer retention and net adds, T-Mobile reported a 1.8 percent drop in average revenue per user on branded postpaid phones. In the first quarter 2018, T-Mobile reported revenue of $46.66 per user, compared with $47.53 in the year-ago quarter.

On Sunday, the company announced a blockbuster merger agreement with former rival Sprint. The new combined company will boast more than 100 million subscribers and a value of $146 billion.

T-Mobile had previously struggled to keep up with the two largest wireless companies, Verizon and AT&T, but the merger with Sprint promises to boost T-Mobile’s odds in the race for customers and technological innovation. The new company is touting the ability to create thousands of U.S. jobs and a large-scale 5G network that could compete with China in the near-term.

The agreement still faces regulatory scrutiny from the Trump administration, which has taken a hard line on telecom mergers. Earlier this year, President Donald Trump scuppered Broadcom’s attempt to buy mobile chip maker Qualcomm, and the Department of Justice is suing to stop AT&T’s proposed acquisition of Time Warner.

Correction: A previous version of this story misstated the revenue forecast by Thomson Reuters.

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