Home / Networking / T-Mobile Q1 solid, COVID-19 hit, Sprint integration lands in Q2

T-Mobile Q1 solid, COVID-19 hit, Sprint integration lands in Q2


T-Mobile said it is seeing “notable shifts” in how its customers are using its network with tethering, messaging and collaboration top use cases as the company laid out better-than-expected first quarter earnings.

The company reported first quarter net income of $951 million, or $1.10 a share, on revenue $11.12 billion, up 0.3% from a year ago. Wall Street was expecting first quarter revenue of $11.38 billion with non-GAAP earnings of $1.02 a share.

Since T-Mobile closed the Sprint acquisition April 1, the earnings report just covers T-Mobile. T-Mobile added 777,000 branded postpaid net customers in the first quarter with a churn of 0.86%.

Mike Sievert, T-Mobile CEO, said the company’s goal is to execute well, integrate Sprint and weather the COVID-19 pandemicT-Mobile completes Sprint merger, Legere hands off to Sievert

T-Mobile didn’t provide 2020 guidance given the COVID-19 pandemic but said it will provide a revised outlook on its second quarter earnings report. For the second quarter, T-Mobile said it expects to add between 0 and 150,000 net postpaid customer additions, merger costs of $500 million to $600 million, COVID-19 costs between $450 million to $550 million and adjusted EBITDA between $6.2 billion to $6.5 billion.



Sprint will bolster T-Mobile’s overall customer base as well as fortify its network. To that end, T-Mobile said it started deploying 5G sites in New York City and Philadelphia via Sprint’s 2.5 GHz mid-band spectrum. The company expanded its 5G sites to an additional 1,600 sites in the first quarter.

T-Mobile had multiple moving parts in the first quarter. Consider:

  • The company closed 80% of its retail stores and moved employees to remote work where possible. The closure of T-Mobile stores hampered the company’s ability to add customers.
  • Planned for a rapid integration of Sprint. Sprint customers now have access to T-Mobile’s LTE network. T-Mobile is banking on $43 billion in synergies from the deal.
  • Branded postpaid average revenue per user fell 1% from a year ago to $45.80.
  • At the end of the first quarter, T-Mobile had 68.54 million subscribers.
  • Earnings were hampered by supplemental employee payroll, and COVID-19 costs. 

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I'm a 50 year old PLC programmer from Burnley, UK. I severed my time as an electrician in the baking industry and soon got involved with the up and coming technology of PLC's. Initially this was all based in the Uk but as the years went by I have gradually worked my way around the globe. At first it was mainly Mitsubishi with a bit of Modicon thrown in but these days the industry leaders seem to be the Allen Bradley range of PLC and HMI’s.

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