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Straight Talk Gains 500,000 New Customers in Q2 2018 Earnings Report

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Straight Talk, an MVNO owned by America Movil, is getting real close to having 9 million customers. In the past year alone, the MVNO gained around 500,000 customers. Despite this, most of America Movil's businesses in the U.S. has a sluggish growth rate.

Of course, that business includes a couple of wireless brands other than Straight Talk. These two brands are TracFone and SafeLink. Collectively, these three brands make America Movil as the largest MVNO in the country with a little over 22 million customers.

These brands, however, have been going through a contraction period after years of growth. As a result, the company has lost over 2 million subscribers compared to its 24.1 million customers just a year ago.

But to be fair, not all of the brands went through a decline. Straight Talk sets itself apart from the other brands as it has experienced growth in its subscriber count in the past year. Last year, the wireless brand had 8.5 million customers. In Q2 of this year, the brand was able to count 8.99 million subscribers. Part of this could be attributed to the brand's strategy of targeting low-income households, thanks to its unlimited data plans that cost just $55 per month.

America Movil released its Q2 earnings report with a count of 22.1 million subscribers by the end of June. This number is 8.2% lower compared to their Q2 2017 earnings report, having gone through 635,000 net disconnections. The company complimented its Straight Talk brand for having an improvement in the growth of subscribers, which is attributed by its 5.8% increase.

In SafeLink's case, the brand experienced a number of disconnections due to the new changes imposed with Lifeline. TracFone U.S. also had a positive growth after going through a few quarters of decline.

America Movil's CFO, Carlos José García Moreno Elizondo, told investors that "In the U.S. TracFone's revenue growth turned positive again after some quarters of decline. The Q2 2018 results were broadly in-line with our expectations (service revenues matched DBe, and EBITDA was -0.3% vs. our estimate), AMX's scale and network quality leadership is paying key dividends in top markets like Mexico and Brazil, where mobile service revenue growth was +9% and 12% respectively (smartphone uptake, mobile data growth)."

America Movil does not have its own wireless network in the U.S. The brand operates as an MVNO, which piggybacks on networks offered by the major four carriers.


You can read the full transcript of America Movil's Q2 2018 Earnings Call here.



Source: Fierce Wireless

14 comments:

Comment Page :
  1. Targeting poorly educated & undisciplined low income individuals easily suckered into paying $55/month. Way to go Slim! Investors love the poorly educated!

    ReplyDelete
    Replies
    1. Straight Talk does not target poorly educated or undisciplined people of any income level. You're projecting that on ST without any basis for the claim.

      Delete
    2. "Targeting poorly educated & undisciplined low income individuals easily suckered into paying $55/month."

      I see we have a phone-plan-snob here! But anyone else can think about it and realize it is hard to "sucker" anyone into a prepaid plan. Because once anyone got ripped off, they'd go elsewhere... you know. no contract and all.

      I think YOUR comment was aimed at the poorly-educated, but we easily see through it.

      Delete
    3. Bruh, a single consumer (independent of their family/employer) isn't getting unlimited data for less than $55 without some sort of shenanigans.

      The price isn't the problem, it's the false advertising (because it's not truly unlimited) and poor customer service.

      Delete
    4. All 35 Million Xfinity customers can get unlimited data for $45/month plus a couple of $ for taxes.
      All Virgin Inner Circle customers get unlimited data for $50/month.
      MetroPCS, Cricket...how far do you want to go here? Somebody is uneducated.....

      Delete
    5. "Somebody is uneducated"
      Just yourself.

      None of your alternatives are available to me. Att and TMobile are 30 miles away. Sprint is 70. Why don't you name something comparable instead of things that aren't equal? Verizon network (since that's a requirement for many of us), single line, "unlimited" (or at least 60GB), and no requirements such as limited availability cable service (since cable isn't available everywhere anyway).

      Delete
  2. Not really a surprise. It is the Amovil brand they push the hardest that has the most phone selections.

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  3. They offer one price for all carriers, which makes them the best MVNO for true BYOD freedom.

    The only problem is that their unlimited data isn't actually unlimited, and going over the cap will get you booted off.

    ReplyDelete
    Replies
    1. “Unreasonable use” can get you booted from any carrier. ST de-prioritizes after a threshold now; there’re much better than they used to be.

      Delete
  4. I've had a hellish experience with Straight Talk back in 2009. I will NEVER give them another chance. They lost a phone number I had for 5 years.

    ReplyDelete
    Replies
    1. Typical, common America Movil experience.

      Customer disservice circus at its worst.

      Delete
    2. Once you get Trac'd, you never go back.

      Delete
  5. Worst customer service. No thanks

    ReplyDelete
  6. No respect for customers. There are no reasons to stay with Straight Talk. You will get what you paid.

    ReplyDelete
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