T-Mobile US, Inc (TMUS) has reported a 45.72 percent jump in profit for the quarter ended Mar. 31, 2017. The company has earned $698 million, or $0.80 a share in the quarter, compared with $479 million, or $0.56 a share for the same period last year. Revenue during the quarter grew 10.95 percent to $9,613 million from $8,664 million in the previous year period. Gross margin for the quarter expanded 121 basis points over the previous year period to 57.41 percent. Total expenses were 89.21 percent of quarterly revenues, up from 86.52 percent for the same period last year. That has resulted in a contraction of 269 basis points in operating margin to 10.79 percent.
Operating income for the quarter was $1,037 million, compared with $1,168 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $2,668 million compared with $2,814 million in the prior year period. At the same time, adjusted EBITDA margin contracted 473 basis points in the quarter to 27.75 percent from 32.48 percent in the last year period.
"We’ve been beating up on the competition for over 4 years now while making wireless better for consumers," said John Legere, president and chief executive officer of T-Mobile. "Q1 was no different with T-Mobile again producing the best customer and financial growth in the industry. Add to that our recent success in the 600 MHz spectrum auction and it’s clear we’re just getting started!"
Operating cash flow improves significantly
T-Mobile US, Inc has generated cash of $1,713 million from operating activities during the quarter, up 67.12 percent or $688 million, when compared with the last year period. The company has spent $1,550 million cash to meet investing activities during the quarter as against cash outgo of $1,860 million in the last year period.
Cash flow from financing activities was $1,838 million for the quarter as against cash outgo of $100 million in the last year period.
Cash and cash equivalents stood at $7,501 million as on Mar. 31, 2017, up 105.68 percent or $3,854 million from $3,647 million on Mar. 31, 2016.
Working capital drops significantly
T-Mobile US, Inc has witnessed a decline in the working capital over the last year. It stood at $614 million as at Mar. 31, 2017, down 84.55 percent or $3,361 million from $3,975 million on Mar. 31, 2016. Current ratio was at 1.04 as on Mar. 31, 2017, down from 1.42 on Mar. 31, 2016.
Days sales outstanding went down to 37 days for the quarter compared with 43 days for the same period last year.
Days inventory outstanding has decreased to 11 days for the quarter compared with 33 days for the previous year period.
Debt comes down marginally
T-Mobile US, Inc has recorded a decline in total debt over the last one year. It stood at $20,647 million as on Mar. 31, 2017, down 1.07 percent or $223 million from $20,870 million on Mar. 31, 2016. Total debt was 30.34 percent of total assets as on Mar. 31, 2017, compared with 33.09 percent on Mar. 31, 2016. Debt to equity ratio was at 1.09 as on Mar. 31, 2017, down from 1.22 as on Mar. 31, 2016. Interest coverage ratio deteriorated to 2.36 for the quarter from 2.79 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: editor@irisindia.net
