T-Mobile US booked a huge tax windfall in its Q4 results, fuelling an increase in net profit of 594 per cent, as revenue also reached a record high.
The operator reported a net profit of $2.7 billion for the period, which included a one-off tax break of $2.2 billion due to changes in US laws and “after tax spectrum gains” of $124 million. Without the two special items, net profit would have been $376 million, marginally down from $390 million in Q4 2016.
Its figures for Q4 2017 were also affected by a $40 million charge related to the aftermath of a series of hurricanes which hit the US mainland and territories in the back half of the year. The financial impact from the natural disasters are expected to feature again in Q1 2018.
Revenue for Q4 2017 was up 5 per cent year-on-year to $10.8 billion, the highest quarterly figure it had ever generated.
In its earnings statement, the company hailed its “record” Q4 and financial year. CEO John Legere said: “We made incredible progress in 2017 building out our network and retail footprint to set ourselves up for future growth. Our business is clearly firing on all cylinders.”
The operator also confirmed a net increase of 1.9 million connections for Q4.