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T-Mobile second quarter results are out, 50 000 customers loss, but revenue only slightly down

Posted: , by Daniel P.

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T-Mobile second quarter results are out, 50 000 customers loss, but revenue only slightly down
Rumor had it that Deutsche Telekom has put its US branch of T-Mobile on the backburner after it agreed to sell it to AT&T for $39 billion, fueled by the fact that the German telecom giant put T-Mobile USA as "discontinued operations" in its first quarter earnings report.

Now the nation's fourth largest carrier Q2 results are out, and the situation isn't nearly as bad as analysts predicted. A Bloomberg survey of eight analysts who cover T-Mobile revealed an expectation for the carrier to lose 200 000 contract customers on average over the course of the second quarter.

T-Mobile actually lost just 50 000 in total, contract and prepaid, which goes against the saying that Deutsche Telekom and T-Mobile aren't doing enough to retain customers who are confused what will happen with T-Mobile in the future, and wary to sign contracts in light of the AT&T merger.

The average revenue per contract customer even climbed slightly, from $52 in Q1, to $53 in the second quarter, while the prepaid revenue was unchanged at $18. Total revenue slightly diminished at $5.1 billion from $5.2 in Q1, due partially to the increased price of a gross customer add from $300 to $320, but the operating margin healthily increased to 28%. Here's the full list of stats below:

SELECTED DATA FOR T-MOBILE USA

 

     
   
    Full    
   
   




Q2

Q1

Year

Q4

Q3

Q2
(thousands)       2011     2011     2010     2010     2010     2010
Customers, end of period1      

33,585

   

33,635

   

33,734

   

33,734

   

33,757

   

33,620

Thereof contract2 customers

     

25,784

    26,065    

26,447

    26,447     26,698     26,752
Thereof prepaid2       7,801     7,570     7,287     7,287     7,059     6,868

Net customer (losses) / additions

      (50)     (99)     (56)     (23)     137     (93)
                                       
Minutes of use/contract customer/month2      

970

   

1,020

   

1,100

   

1,050

   

1,080

   

1,120

Contract churn2, 3       2.40%     2.40%     2.30%     2.50%     2.40%     2.20%
Blended churn3       3.30%     3.40%     3.40%     3.60%     3.40%     3.40%



















 
($)                                      
ARPU (blended)4       46     46     46     46     47     47

ARPU (contract)2, 4

      53     52     52     52     52     52

ARPU (prepaid)2, 4

      18     18     19     19     19     18
Data ARPU (blended)5       13.60     13.10     11.90     12.80     12.40     11.60
Cost of serving (CCPU)6       23     25     23     24     24     23
Cost per gross add (CPGA)7       320     300     300     290     290     330



















 
($ millions)                                      
Total revenues       5,050     5,161     21,347     5,363     5,350     5,356
Service revenues4       4,620     4,630     18,733     4,694     4,708     4,699
Adjusted OIBDA8       1,277     1,188     5,478     1,342     1,323     1,419
Adjusted OIBDA margin9       28%     26%     29%     29%     28%     30%
Capital expenditures10       688     749     2,819     828     643     682

Note: Amounts may not add due to rounding.



All in all, it seems that T-Mobile is in a decent shape considering all the congressmen and industry analysts chiming in on the proposed AT&T/T-Mobile merger. CEO Philipp Humm was quick to point out that, while the market is challenging right now, a bright spot is that nearly 30% of T-Mobile's customers are now using 3G or 4G smartphones, which is the highest percentage ever.

via TmoNews & T-Mobile

3 Comments
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posted on 04 Aug 2011, 09:59

1. remixfa (Posts: 13930; Member since: 19 Dec 2008)


concidering how many people are scared mindless because of the merger, thats not bad.
Tmo is actually the best place to be if your an ATT customer wanting to stay with ATT. When they merge you will either be on ATT's 140 not-unlimited 4 gig plan.. or Tmos unlimited everything plan for as low as 75, with 5 gigs until it throttles... not charges like ATT. It also gives you access to much much much faster internet. :) If the rumors are true that we are getting an HSPA+ iphone for christmas, there is zero reason to stay on ATT if u get coverage from both providers.

posted on 04 Aug 2011, 10:37

2. bigdawg23 (Posts: 382; Member since: 25 May 2011)


If you look at the previous months, T-Mo they has been on this trending subscriber loss pre-AT&T merger announcement. Some of the numbers maybe from that but not as much as people think.

posted on 04 Aug 2011, 12:01

3. remixfa (Posts: 13930; Member since: 19 Dec 2008)


true, theyve been bleeding for a while. It was actually a bit less this quarter than last if i remember right.. Who knows, without the merger madness (and its the only thing i hear about all day every day at work) maybe they would have been even or even posted positive.

Many of the acts that we've had.. in my own experience anyways.. are from ATT customers looking to get a better deal, which is why I mentioned the stuff above. If you do the math, why would u want to be on the same network paying twice as much as the other guy?

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