Freedom Mobile: Record Wireless Subscriber Growth in Q2 Led by iPhone Demand
Shaw announced their second quarter earnings for the three month period ending on February 28, 2018 today, and when it comes to their wireless division, Freedom Mobile, the latter saw record growth, assisted by strong demand for Apple’s iPhone, which debuted on the network back in December.
Freedom Mobile added 89,700 net wireless postpaid subscribers, an increase of over 2.5 times compared to the year ago quarter (33,400 net additions), and handily beating analysts’ estimates, such as Barclays analyst Phillip Huang, who predicted net additions of 45,000.
The increase according to Shaw, “reflects customer demand for the iPhone combined with our device pricing and packaging options and the ongoing execution of our wireless growth strategy to improve the network and customer experience.”
Shaw said wireless revenue of $290 million was a 106% increase compared to the year ago quarter, while average revenue per user increased to $38.43, a $2 rise compared to a year earlier.
The company also officially announced it would launch Freedom Mobile within Loblaws’ ‘The Mobile Shop’ kiosks (which we first told you about yesterday), at roughly 100 locations nationwide. Shaw said it continues to roll out its 2500 and 700 MHz spectrum, which will support additional features such as VoLTE.
“Our strong second quarter results clearly show that Canadians have a demand for a truly competitive wireless option,” said Brad Shaw, Chief Executive Officer, in a statement. “Our strategy to grow our Wireless business has been simple: create a wireless provider that offers fairness and value to Canadians and that respects people’s desire to connect when they want, how much they want, and on the iconic devices they want.”
Freedom Mobile currently has a promotion for iPhone 8, offering the device for $0 upfront, along with a $65 per month plan with 10GB of data.
For those living in areas of good coverage from Freedom Mobile, they’re benefitting from the new LTE network and the recent availability of iPhones on discount. Shaw’s making money moves.