Ting Mobile was able to add 19,000 more customers, while at the same time, posted a very low customer turnover rate (more on this later). According to the mobile virtual network operator (MVNO), around half of the new customer additions can be attributed to former subscribers of RingPlus migrating to Ting after RingPlus discontinued its service back in February earlier this year. When RingPlus shut down a few months ago, an estimated 100,000 customers were left with no service provider, but some eventually shifted to Ting’s network.
As for the other half of the customer additions, Ting Mobile credits good old-fashioned organic growth. It bears noting that during the first three months of 2017, the carrier had posted net organic additions at about 5,000 customers. By adding another 4,500 in the second quarter, Ting brings its 2017 first half total to 9,500 customer additions. This total represents a huge improvement over the 6,000 organic additions the mobile operator had recorded in the second half of 2016.
Elliot Noss, the chief executive officer of Tucows (the parent company of Ting Mobile), revealed during a quarterly conference call with investors that Ting now has activated 170,000 accounts and has connected 278,000 devices. Half a year ago, the MVNO’s totals were at 151,000 active accounts and 245,000 connected devices.
With regards to churn, Noss is happy to announce that Ting Mobile registered its lowest monthly customer turnover rate from its core customer base since 2015. He further pointed out that this was quite an achievement for the carrier, considering how competition in the MVNO market has intensified in the last several quarters, especially with the onset of the so-called unlimited data wars.
In terms of earnings, Tucows generated a net revenue of $84.2 million during Q2 2017. This figure represents a year-over-year increase of 78 percent (a new record) compared to the $47.2 million reported during Q2 2016. The Internet company also posted profits of $5.2 million, a 29 percent improvement compared to the previous year’s second quarter results. Lastly, its earnings before interest, tax, depreciation and amortization (EBITDA) rose to $10.3 million, a 50 percent increase over last year.