T-Mobile USA 2Q Net Up 61%; Revenue Up 28% On New Customers

BELLEVUE, Wash. -(Dow Jones)- T-Mobile USA Inc., a unit of Deutsche Telekom AG (DT), posted a 61% increase in its second-quarter net income, propelled by new customer additions for both prepaid and postpay wireless phone services.

Earnings rose to $387 million from $240 million a year ago, while revenue grew 28% to $3.61 billion from $2.81 billion.

Postpay churn averaged 2.3% a month in the second quarter of 2005, down from 2.4% a year earlier. Blended churn, which is a mix of postpay and prepaid customers, was flat from a year ago at 2.8%.

In a press release following its parent company's earnings announcement, T-Mobile USA said it added 972,000 net new customers, compared with 957,000 added in the first quarter of 2005 and 1.09 million in the second quarter of 2004. About 70% of the latest growth came from new postpay customers, which currently comprise over 87% of the total customer base. The rest of the growth came from new prepaid customers.

-Judy Lam; Dow Jones Newswires; 201-938-5400; AskNewswires@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 11th August 2005