T-Mobile Reports 27% Increase in Third-Quarter Net Income Amid Rising Account Churn
T-Mobile US (TMUS) reported a significant increase in third-quarter net income, rising 27% to approximately $3.5 billion, with diluted earnings per share growing 34% year-over-year to $3.22. This profit growth was primarily driven by operating leverage and increased Average Revenue Per Account (ARPA), which rose 4% to $155.73. However, the results reveal underlying concerns regarding customer retention. Postpaid net account additions fell to 274,000 from 396,000 a year ago, while monthly postpaid churn increased to 1.09%. Analysts suggest that higher pricing may be driving customers away, and full-year guidance suggests a slowdown in subscriber growth for the fourth quarter.
Tickers: $TMUS
Topics: ARPA churn rate EPS net income operating cash flow postpaid account additions