T-Mobile US Inc (NYSE:TMUS) Q1 2019 Earnings Conference Call Transcript
Apr 25, 2019 • 04:30 pm ET
John J. Legere
On top of that, we delivered our best ever Q1 financial results. So, if I sound a little fired up about my team and about my business, it's because I am. I've seen certain comments recently about our business; can the momentum continue, can they keep their eye on the ball and manage the business while planning for a massive merger, can they take care of customers and deliver incredible results? My friends, the answer is yes.
I'd also like to give a big shout out to our incredible employees who made all this possible. There are a lot of numbers to unpack, so let's dive right in. First, let's talk customers, we added 1.7 million total net customers, extending our winning streak to 24 quarters in a row, with more than 1 million net adds, and we added 656,000 branded postpaid phone customers, capturing an estimated 88% of the expected industry postpaid phone growth, including cable, and delivering almost 4 times more postpaid phone net additions than Comcast, the next closest competitor.
In fact, we expect to be the only major wireless carrier with positive postpaid phone net adds this quarter. And our growth in postpaid phone nets accelerated year-over-year, despite lower industry switching volumes. We also had strong total branded postpaid net additions of over 1 million, once again, supported by continued strong growth in wearables. These wireless customers are coming and staying longer than ever before.
In Q1, we had all-time record low branded postpaid phone churn of 0.88%, down 19 basis points year-over-year. Not only is this an all time record low, it's also lower than AT&T for the second quarter in a row.
Branded prepaid net customer additions were 69,000 and we're pleased with our performance in the quarter. Next, I've got to highlight our very strong financial results; total revenues increased by 6% year-over-year to $11.1 billion, a record high for Q1. Service revenues hit record highs, reaching $8.3 billion growing by 6% year-over-year, and branded postpaid revenues grew by 8.3%.
We hit a record high adjusted EBITDA of $3.3 billion, up 11% year-over-year with a 40% adjusted EBITDA margin. Net income was a Q1 record of $908 million, up 35% year-over-year and fully diluted EPS came in at $1.6 up 36%.
Our momentum continues to be fueled by investments in new geographies, underpenetrated segments and customer care and we're not stopping there. We continue to make moves that lay the foundation to increased competition in a converged 5G world, and as we join forces with Sprint. First, we launched our home Internet pilot. We expect to deliver speeds of up to 50-megabits per second initially and paving the way for a 5G experience of up to 1-gigabit per second. If ever there was a business that could use a good uncareering, it's this one.
No annual service contracts, no hidden fees and no equipment costs, sound familiar? You probably also notice, we took a next step in the TV space with the launch