T-Mobile USA (TMUS): Q3 revenue of $6.69B (+9% Y/Y, takes MetroPCS into account) beats by $120M.
Service revenue +0.6% Q/Q and -5% Y/Y to $5.14B; the Y/Y drop is due to weakness in Q4 2012 and Q1 2013.
Subscriber adds beat estimates: Total net adds of 1.02M vs. 1.05M in Q2 and -152K a year ago. Branded postpaid net adds of 648K vs. 688K in Q2 and -492K a year ago. Branded prepaid net adds of 24K vs. -87K in Q2 and 53K a year ago. Wholesale net adds of 351K vs. 452K in Q2 and 287K a year ago.
T-Mobile now expects 1.6M-1.8M 2013 branded postpaid net adds, up from prior guidance of 1M-1.2M. Full-year adjusted EBITDA guidance ($5.2B-$5.4B) and cash capex guidance ($4.2B-$4.4B) has been reaffirmed.
Thanks to investments and aggressive pricing, adjusted EBITDA was $1.34B, +6% Q/Q but -21% Y/Y.
203M POPs covered by 4G LTE network, up from 157M at end of Q2. 61% of branded postpaid subs on Value or Simple Choice plans, up from 50% at end of Q2.
Branded postpaid churn was 1.7% vs. 1.6% in Q2 and 2.3% a year ago. Branded cost per gross add was $307, down from $326M in Q2 and $382 a year ago.