T-Mobile USA Posts Quarterly Loss on Higher Subscriber Numbers
Published on: 25th Feb 2014
By: Ian Mansfield
T Mobile USA has reported a fourth quarter loss even as it added 1.6 million more customers to its network.
Revenues for the fourth quarter of 2013 increased by 39.1% year-over-year to $6.83 billion, principally due to the inclusion of MetroPCS results in the fourth quarter of 2013. They would have been up by 10.2% without the MetroPCS deal.
The company however posted a loss of US$20 million, compared to a loss of US$8 million a year ago. Adjusted EBITDA for the fourth quarter of 2013 was $1.239 billion, a 7.8% decline from the third quarter of 2013, reflecting the increased promotional expenditures.
"Our performance in the fourth quarter and the full year is clearly proving that we have our strategy right and that we are executing it well," said John Legere, President and CEO of T-Mobile.
T-Mobile ended the fourth quarter of 2013 with approximately 46.7 million customers, an increase of 1.645 million total customers from the end of the third quarter of 2013.
Branded postpaid ARPU decreased quarter-over-quarter by $1.50 or 2.9% to $50.70, primarily as a result of the continued rapid adoption of Value and Simple Choice plans, which deliver lower monthly ARPU due to lower service charges compared to bundled equipment and service plans.
That declining ARPU is however in marked contrast to the other US networks who are generally increasing the rate due to higher smartphone and mobile data usage.
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