T-Mobile, TMUS

Hearing a lot of good news lately (Netflix being included, anecdotes of switchers, improved network, …) I pulled some EPS numbers.

          Q1     Q2      Q3      Q4     Year
2014		0.48	-0.12	0.12	0.29
2015	-0.09	0.42	 0.15	0.34	0.82
2016	 0.56	0.25	 0.42	0.45	1.68
2017	 0.8	0.67	 0.63		2.10+

There’s some quarterly lumpiness to do with spectrum purchases; annually the picture is clear. Looks promising!

The P/E is currently 26.

Here’s their latest shareholder info: http://investor.t-mobile.com/Cache/1001228564.PDF?O=PDF&… These shareholder “facebooks” appear very shareholder-friendly. (more at http://investor.t-mobile.com/QuarterlyResults).

Any red flags with T-Mobile?



Hi Graham,

The one issue I see with TMUS is what differentiates their product from the competition? To me, there is no difference between the cell phone service from TMUS, S, VZ, or T as long as you live in a well populated area. That means TMUS has to compete on price to increase revenue and I am reluctant to invest in a company that has to compete based on price instead of a product that makes it stand apart from the competition.


Full disclosure: I own a few shares of TMUS and am short a few TMUS puts as well.

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Good question. I see the bundling of a Netflix subscription as a differentiator. Sprint has since added Hulu (who cares?), and AT&T, at their top tier, includes HBO - if you also have their TV service. It doesn’t include HBO Go, just HBO over cable. I don’t see anything equivalent from Verizon.

T-Mobile’s marketing is also differentiating - at least anecdotally my kids have noticed it.

They must be doing something right - now at 18 consecutive quarters where >1 million customers were added (albeit in a growing market). Over the last year, TMUS’ revenues grew where the other 3’s revs have declined.

The stock has taken a small hit lately ($68-ish to $62-ish) due to the potential merger with Sprint falling through.


Outstanding article on John Legere, T-Mobile’s CEO: https://www.cnbc.com/2017/11/24/t-mobile-ceo-john-legere-on-…

“So he wrote a manifesto. “We’re not like other wireless companies. Why would we be?..”

“T-Mobile is in an enviable position of building the bundle from scratch with services that consumers actually want and without having to sustain legacy businesses that are in structural decline.”