T-Mobile US, Inc (TMUS) has reported 31.31 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $390 million, or $0.45 a share in the quarter, compared with $297 million, or $0.34 a share for the same period last year.
Revenue during the quarter grew 23.38 percent to $10,175 million from $8,247 million in the previous year period. Gross margin for the quarter contracted 524 basis points over the previous year period to 53.49 percent. Total expenses were 90.74 percent of quarterly revenues, up from 89.84 percent for the same period last year. That has resulted in a contraction of 90 basis points in operating margin to 9.26 percent.
Operating income for the quarter was $942 million, compared with $838 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2,548 million compared with $2,280 million in the prior year period. At the same time, adjusted EBITDA margin contracted 260 basis points in the quarter to 25.04 percent from 27.65 percent in the last year period.
"These results are proof that doing right by customers is also good for shareholders. Not only are customers flocking to T-Mobile, but we're also producing rock-solid financial results including 11% growth in service revenues, 23% in total revenues, 31% in net income and 12% in Adjusted EBITDA year-over-year in Q4," said John Legere, President and chief executive officer of T-Mobile. "The competition just doesn't get that customers want to come first! That's three years in a row that we've added more than 8 million customers and taken all of the postpaid phone growth in the industry. The Un-carrier revolution continues in 2017"
Operating cash flow improvesT-Mobile US, Inc has generated cash of $6,135 million from operating activities during the year, up 13.32 percent or $721 million, when compared with the last year. The company has spent $5,680 million cash to meet investing activities during the year as against cash outgo of $9,560 million in the last year.
Cash flow from financing activities was $463 million for the year, down 86.43 percent or $2,950 million, when compared with the last year.
Cash and cash equivalents stood at $5,500 million as on Dec. 31, 2016, up 20.03 percent or $918 million from $4,582 million on Dec. 31, 2015.
Working capital decreases marginally
T-Mobile US, Inc has witnessed a decline in the working capital over the last year. It stood at $5,195 million as at Dec. 31, 2016, down 3.11 percent or $167 million from $5,362 million on Dec. 31, 2015. Current ratio was at 1.58 as on Dec. 31, 2016, up from 1.56 on Dec. 31, 2015.
Debt moves upT-Mobile US, Inc has witnessed an increase in total debt over the last one year. It stood at $22,186 million as on Dec. 31, 2016, up 7.47 percent or $1,543 million from $20,643 million on Dec. 31, 2015. Total debt was 33.67 percent of total assets as on Dec. 31, 2016, compared with 33.06 percent on Dec. 31, 2015. Debt to equity ratio was at 1.22 as on Dec. 31, 2016, down from 1.25 as on Dec. 31, 2015. Interest coverage ratio improved to 2.36 for the quarter from 1.91 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
