T-Mobile US, Inc.NASDAQ
T-Mobile Momentum Remains: Accumulate Before Next Leg Higher
Alpha Gen Capital
Alpha Gen Capital
T-Mobile's Reinvigorated Brand And Momentum Accelerates
Alpha Gen Capital
Alpha Gen Capital
Wed, Nov. 23, 10:36 AM
- The group issues concern over what it maintains were certain overstated GAAP earnings from Q4 2014 through Q3 2015 relating to Equipment Installment Plans [EIPs] sales and criticizes clarity and presentation of T-Mobile's (TMUS -0.6%) non-GAAP reporting measures.
- CtW Investment Group works with certain pension funds and claims focus on corporate accountability and shareholder activism.
Wed, Nov. 16, 6:56 PM
- With consolidation fever sweeping the media and telecom industries, Deutsche Telekom (OTCQX:DTEGY -0.4%) is playing coy about selling its interest in T-Mobile U.S. (TMUS -1.4%) -- even if T-Mobile chief John Legere has enthusiastically talked up the idea of partnering up in quarterly calls.
- "We are not in the mood of selling the business. We are not in the mood of: 'Oh where is the partner we need?' " CEO Tim Hoettges told the Morgan Stanley conference in Barcelona.
- But he's keeping an eye on the Trump administration as it takes shape and looking for any regulatory changes. The company's last two attempts to sell T-Mobile got tied up by government watchdogs, and since then T-Mobile has pulled off a recovery: It's almost as big as DT's German business.
- "All of this is helping us to be open and try to improve our situation," he says. "I am not afraid about whether a (pure) mobile player can survive in this environment. If there are any options, we are going to consider."
Tue, Nov. 15, 4:43 PM
- Conversations about Sprint (S +3.2%) and T-Mobile (TMUS +1%) getting together in a merger, to combine their struggles against the top two wireless providers, are running into one problem, according to Citi: The two upstarts aren't struggling as much as before.
- Operational rebounds at Sprint and T-Mobile will make for a harder case before regulators who would have to be persuaded to sign off, the firm says. An attempt to merge in 2014 was denied by authorities.
- "We think Sprint and T-Mobile are more likely than not to reconsider a merger scenario, but the (TV spectrum) auction, other strategic options, and regulatory complexities may slow down any attempt during 2017," writes analyst Michael Rollins.
- T-Mobile led the big four carriers with 851,000 net adds in branded postpaid phones, and added 684,000 net subs in branded prepaid to boot. Sprint, meanwhile, added 347,000 net postpaid phone subs in a rebound quarter.
- "We come back to an essential issue that we believe hurt the companies' prospects for consolidation in the last go-around -- if it's not broken, why fix it?" Rollins says.
Fri, Nov. 11, 6:47 PM
- AT&T (T -0.2%) is taking a page out of T-Mobile's (TMUS +0.7%) playbook when it comes to videos and their massive data appetite.
- The telecom's new "Stream Saver" feature is designed to make limited data buckets go "further" for customers, by streaming most higher-definition video to mobile devices at standard definition quality: DVD-level, about 480p.
- It will be available on AT&T's most popular plans with data (including GoPhone prepaid), and customers will be able to turn it on or off.
- If that sounds familiar, it's similar to what T-Mobile did when introducing its "Binge On" feature, exempting a wide swath of video viewing from data buckets (but doing so by downscaling the video to 480p). But Binge On has raised chatter about whether exempting data violates provisions of the FCC's net neutrality regulations, designed to treat all data equally without favor.
- AT&T's plan isn't free data, but promises to use less data when watching video, if customers choose to turn it on.
- AT&T is planning to zero-rate (exempt entirely) content on its upcoming DirecTV Now streaming video service for its own wireless customers.
Thu, Nov. 10, 12:11 PM
- With telecom consolidation making up one of the post-election storylines in the U.S. -- in particular, whether a new administration changes the calculus for a merger at U.S. unit T-Mobile (NASDAQ:TMUS) -- Deutsche Telekom (OTCQX:DTEGY -2%) says it's too early to tell whether a Trump administration would be positive for M&A.
- "The market reacted heavily," said DT CEO Tim Hoettges after T-Mobile stock hit an all-time high (it's now backed off 2.8%).
- A deal to combine T-Mobile with Sprint (S -0.9%) was nixed by regulators two years ago.
- DT will keep an open mind, and believes a U.S. mobile merger would be "huge," but "It is just far too early to speculate what the new administration would look like," Hoettges says.
- Earlier, Deutsche Telekom met expectations with its Q3 results largely due to performance at T-Mobile.
Thu, Nov. 10, 10:57 AM
- Deutsche Telekom (OTCQX:DTEGY) is 2.8% lower in U.S. trading after Q3 results where it met expectations and reiterated full-year guidance.
- Revenue grew nearly 6% with the help of solid growth at T-Mobile (NASDAQ:TMUS), and net profit was up more than 30%. EBITDA of €5.54B rose 7.2% and slightly missed an expected €5.55B.
- Fiber-optic broadband lines rose by 526K in Germany. While the number of call minutes used by contract customers rose 4.6% Y/Y, the company points at data usage that was up 80% (to nearly 1 GB/month on average). Its LTE network now covers about 92% of the population there.
- Meanwhile, mobile contract customers in European national companies rose by 219,000, and there are more than 4M TV customers. LTE is available to 78% of the population.
- Revenue breakout: Germany, €5.55B (down 0.8%); United States, €8.28B (up 17.3%); Europe, €3.22B (down 1.2%).
- Free cash flow rose 45.6% to €1.9B.
- Press Release
Wed, Nov. 9, 11:34 AM
- While Time Warner is trading lower as investors digest a slimmer chance of a buyout by AT&T under a Trump administration, Sprint (NYSE:S) -- a company long thought to again become a merger prospect after a change in the White House -- is up 12.5% and hitting two-year highs today.
- Its oft-discussed merger matchup partner, T-Mobile (NASDAQ:TMUS) is up 3.8%.
- Meanwhile, changes are likely coming to the FCC, Wells Fargo argues: It will at least be more conservative, if not working under new leadership soon; expecting Chairman Tom Wheeler to stay a full term is "no longer realistic."
- "If the rhetoric of those surrounding Trump’s campaign rings true, we can expect a Republican FCC to make a big push to roll back some of the regulations put in place under President Obama such as the Title II/Net Neutrality rules," writes analyst Jennifer Fritzsche. "There may also be a push to roll back some or all of what the FCC just did on privacy."
- "It’s unclear whether Chairman Wheeler will be able to act on the open items related to Business Data Services or set top box reform before he departs and if he does not, some suggest a Republican FCC will reverse course on these two items. There is also a big question on how a Trump FCC will view transactions including the recently announced T/TWX merger and the LVLT/CTL transaction."
- LVLT +0.4%; CTL +0.5%. TWX -1%. Names tied to net neutrality: T, VZ, CMCSA, CHTR, OTCPK:ATCEY, CTL, FTR, CCOI, DISH.
Thu, Oct. 27, 2:02 PM
- The FCC split on party lines again today in adopting tough new privacy regulations on broadband Internet providers, rules that require an opt-in before sharing most customer data.
- That could present a problem growing advertising for big providers including Comcast (NASDAQ:CMCSA), Charter (NASDAQ:CHTR), AT&T (NYSE:T) and Verizon (NYSE:VZ).
- The vote passed 3-2 with strong dissents from the panel's two Republican commissioners. More public information (names, addresses) will be treated leniently, but providers will need to ask permission before sharing more sensitive data (like phone-tracked location, or sites visited and apps used).
- The new rules, while scaled back, have drawn heavy criticism from cable/telecom and advertising sectors, with companies that fret that the move will restructure the Internet's free-content approach.
- Other players: OTCPK:ATCEY, FTR, CTL, WIN, S, TMUS, CCOI
Wed, Oct. 26, 3:20 PM
- With AT&T beginning a long journey to acquire Time Warner, is T-Mobile (TMUS +0.7%) the next big acquisition target in the media/telecom space? Analysts are talking up the carrier's prospects after it logged another successful quarter.
- For its part, T-Mobile has been and still is "very interested" in strategic options, COO Mike Sievert says.
- "The takeout target over the next 12 months has got to be T-Mobile," says New Street Research's Spencer Kurn, noting potential suitors in Comcast (NASDAQ:CMCSA) -- which is exercising a clause with Verizon to launch MVNO service -- as well as Dish Network (NASDAQ:DISH) and America Movil (NYSE:AMX).
- Dish has a lot of spectrum but no wireless business -- and it's lost a potential buyer in AT&T, which now has its hands full with Time Warner, notes BTIG's Walt Piecyk.
- Rival Sprint (S -1.8%) could be a takeover target as well, as CEO Marcelo Claure noted "we've had a lot of bankers placing more calls than usual over the weekend" in yesterday's earnings call.
Mon, Oct. 24, 6:22 PM
- AT&T's deal to acquire Time Warner is "good for T-Mobile (TMUS +9.5%) in the short and medium term," says T-Mobile chief John Legere today, expecting a distraction at his blue whale of a nemesis while his underdog firm racks up new subscribers.
- T-Mobile today logged net adds of 851,000 subscribers in branded postpaid phones, while AT&T lost 268,000 this quarter. For its part, Verizon lost 36,000 net subs in branded postpaid phones. (Sprint, the No. 4 carrier, added 347,000.)
- The Time Warner deal is a "bold move. It's going to cause acceleration," Legere says, but noting that AT&T could get "further defocused" on the wireless business as it diversifies.
- The interesting question going forward: Will regulators have a fresh stance on a once-squelched merger of T-Mobile with Sprint (S +5.7%) now that AT&T is making a move toward becoming a telecom/media behemoth?
- T-Mobile stock hit a nine-year high today. Sprint reports earnings tomorrow before the bell.
- Previously: T-Mobile up 7.4% on subscriber boost, Q3 profit beat (Oct. 24 2016)
- Previously: T-Mobile US beats by $0.04, misses on revenue (Oct. 24 2016)
Mon, Oct. 24, 3:00 PM
Mon, Oct. 24, 11:55 AM
- T-Mobile (NASDAQ:TMUS) is up 7.4% and hitting new 52-week highs in the wake of Q3 earnings where it beat profit expectations and led the industry in subscriber additions again.
- The carrier posted 851,000 net adds in branded postpaid phones, along with 684,000 net adds in branded prepaid, leading the big four carriers in each of those categories, and cut branded postpaid phone churn another 14 basis points to 1.32%.
- Net income rose to $366M from a year-ago $138M, including after-tax spectrum gains of $122M. The after-tax impact of those gains on headline EPS of $0.42 was $0.15 per share.
- Adjusted EBITDA rose 38% to $2.63B, beating an expected $2.38B.
- It's raised its customer outlook again, boosting guidance for branded postpaid net adds in 2016 to 3.7M-3.9M, from previous 3.4M-3.8M, and it's raised and narrowed its forecast for EBITDA: $10.2B-$10.4B, above a previous $9.8B-$10.1B, and well above consensus for $9.76B.
- Press Release
Mon, Oct. 24, 7:36 AM
Sun, Oct. 23, 5:30 PM
Fri, Oct. 21, 10:29 AM
- T-Mobile (TMUS -0.5%) announces it's offering customers roaming service in Cuba, the latest telecom-related step in liberalization of trade with the island nation.
- T-Mobile has "more customers of Cuban descent than any other wireless company," says CEO John Legere -- 43.7% of Cuban-born wireless customers are T-Mobile customers, he says -- and the country has continually been one of the top requested additions to roaming on social media.
- Customers will be able to talk for $2.00/minute, send text and MMS for $0.50/msg (and receive for free), and use data for $2.00/MB.
- T-Mobile had enabled calls to Cuba from the U.S. in May.
- Earlier this week, AT&T enabled roaming service in Cuba, at higher prices.
Wed, Oct. 19, 11:24 AM
- T-Mobile (TMUS -1%) has settled with the FCC for $48M in a consent decree covering throttling ("de-prioritizing") on its unlimited data plans.
- The company wasn't forthcoming enough about what would happen to heavy data users, or when, the agency says. It received hundreds of complaints from subscribers to T-Mobile and prepaid service MetroPCS while it was investigating.
- Along with the fine amount, T-Mobile has agreed to notify customers when they get close to the threshold when their service might change, and to clearly disclose restrictions on its unlimited data plans in all of its ads, or to stop using the word "unlimited" in them.
- On the monetary side, unlimited plan customers will see at least $35.5M in benefits, including accessory discounts and extra data on added mobile Internet plans. And the company will put $5M into devices and service for students in low-income school districts, and pay a $7.5M civil penalty.
- "Good settlement with FCC today. T-Mobile believes more info is best for customers," tweeted CEO John Legere, adding "Glad we could help schools with this solution as well."