T-Mobile USA reports 1% rise in year-over-year operating earnings in the second quarter

T-Mobile USA reports 1% rise in year-over-year operating earnings in the second quarter
In what has been a rough environment for cellular carriers, T-Mobile USA managed to produce a 1% gain in operating income before depreciation and amoritization over last year's figures which works out to a 16% improvement from this year's first quarter number. The nation's fourth largest carrier had a 2.2% contract churn in the second quarter, a slight improvement from the 2.3% churn rate of the prior three month period. 325,000 net new customers were added in the April-June quarter. Net income for the 2nd quarter was $425 million dollars, up from the $322 million dollars reported in the first quarter, but down from the $452 million dollars year over year.  Blended Average Revenue Per User (ARPU), combining both pre-paid and contract subscribers, was $48 in this year's quarter, flat with the first quarter, but off from last year's $52.

With this quarter behind them, T-Mobile USA is looking forward to the next few months when new products will start generating revenue and income. Just yesterday, the carrier launched myTouch 3G, the second Android powered handset to be released in the U.S., and the BlackBerry Curve 8520 which freshens up the popular BlackBerry line. According to research firm IDC, the Curve was the top selling smartphone in the country in the second quarter, beating out the iPhone 3GS. Also expected to help earnings in the next few quarters is a new agreement with Radio Shack as the latter will start selling T-Mobile branded devices on August 19th. And one of the most anticipated handsets of the year, the HTC Touch Pro2, is scheduled to be launched on August 12th. It looks like the carrier will have no time to take a breath in the next few months.

T-Mobile myTouch 3G Specifications
RIM BlackBerry Curve 8520 Specifications | Review
HTC Touch Pro2 Specifications | Review (European Version)

source: T-Mobile



1. mistapersia

Posts: 19; Member since: Jan 29, 2009

I won't be surprised when Tmobile becomes the 3rd largest carrier in a couple years. Sprint is plummeting it's only a matter of time. Which is a shame cause Sprint is definitly the better CDMA company. Verizon is just a monpaly, it's the Wal-Mart of retail stores, which is ironic because it's also the most expensive of the wireless industry.

2. holby26

Posts: 9; Member since: Dec 29, 2008

well at least you can spell... mostly... How exactly is Verizon the walmart of retail stores? By the way, walmart is a retail store. I'm not sure if you learned that yet in school but it is. The way the Walmart corporation works is to buy every product they have in huge amounts and pass on part of the discounts to its customers. The entire business model is based off making money off as many people and products as opposed to worrying about individual product profit. The other key part to walmart's success is that they offer such a diverse product range. Next time you put you fingers to the keyboard, DON'T. You are a moron. Now that I'm done with that... I do not see TMobile overtaking Sprint. TMobile is a great company but the coverage for both standard calls and data is aweful. In major cities it is great. But why would a customer switch from a cheaper CDMA carrier to a more expensive but less reliable GSM carrier? I guess maybe is WIMAX just completly fails...

5. behold--me

Posts: 679; Member since: Jun 22, 2009

verizon is monopoly. sprint is losing millions of subscribers. and i really disagree with u holby26 cuz i have t-mo and i get amazing coverage and amazing reception and 3g it holds 3G really well and has edge everywhere where it doesn't. t-mo isn't very far behind sprint and i think they can overtake the nation's 3rd largest carrier. T_MO!!!

6. VZWtrainer

Posts: 50; Member since: Jul 24, 2008

How is Verizon Wireless a monopoly? The definition is "exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices". There are atleast 4 cellular carriers in ANY given market in the United States. Where I live, there are 6 choices. How does that entail a monopoly? It's amazing that mistapersia thinks that Sprint is the better CDMA company since they have been hemmoraging their customers for over a year and constantly get MUCH lower ratings for Customer Service and Network Quality from 3rd party surveying companies such as JD Power than VZW does. I for one don't want Sprint to go away. If they did, then the FCC would be getting on VZW's back more than they currently are. We need this current socialist administration to get their hands out of all the private industries that they are messing up. Differences between VZW and Wallmart: 1) VZW is a socially responsible company - Walmart is not. 2) VZW carries a high quality product and is recognized for this - Walmart does not. 3) Walmart tries to push out it's competition in the markets that it does business in - Verizon does things like reducing exclusivity contracts on new handsets to help out the smaller carriers. 4) Verizon Wireless is constantly pushing their industry in a pro-consumer direction (1st company to prorate ETFs, 1st company to stand behind LNP, 1st major carrier to not require contracts for calling plan changes, the previously mentioned exclusitivity changes, etc.) - Walmart does not care about consumers. 5) VZW ONLY employs US citizens - the same can't be said about their competetors. (I know that most handsets are produced outside of the US, like most other electronics. Walmart will do all that it can to save a buck, so foreign produced goods of all kinds line their shelves. This in turn hurts the US economy more than the "Savings" to the average Walmart shopper can be said to help the economy.

7. volvo

Posts: 38; Member since: May 26, 2009

I agree, Sprint is going down hill, and in my state, CT, there voice coverage is horrible and so is the reception. T-Mobile is cheaper, more reliable, and better. Sprint may be ahead data wise and arguably has better phones, but T-Mobile is on a road to success! If T-Mobile continues to work on their coverage and data, it may just go head to head with at&t. though at&t has HELLA phones including the iPhone and a wide variety of high-end phones and smart phones, + tens of millions of more customers. so who knows. only time will tell.

8. mistapersia

Posts: 19; Member since: Jan 29, 2009

Oh please, I worked for Verizon for two years and it was by far the most stuck-up company I ever worked for. Verizon service is overrated and overpriced. They advertise "premium" handsets yet their handsets are released with the same old software just different hardware. It's a great service for smaller cities and towns places far from the capital cities, where other carriers don't have service, or put much effort into their service. But as a company I saw the way my managers laughed off customers and treated them like crap because they weren't in VIP status, to me that ment because they didn't spend more then 79.99 a month they weren't valuable. I didn't like that, there is a difference between being proud and being conceided and i'm sorry but VZW employees have it in their heads they are the shi*. If I remember correctly they were stuggling to catch up to ATT until they bought Altell, they coudln't do it on their own so they used their wealth. Hopefully they won't stay up there forever, but if people stay stupid forever then I guess I just answered my own question.

9. jporterweb

Posts: 25; Member since: Jan 17, 2009

@mistapersia: Wow you are an idiot. You really have got to close your mouth and quit typing before you hurt yourself. I work in a VZW store. I'm not a VZW employee, but I work in the store as a technician. It drives me nuts sometimes how our managers will bend over and take it from the customers. You follow policy with the customer and the manager comes over and just gives them what they want. So maybe your store was different, but every store in my area is nothing like you describe in your post. Don't blame a whole company for one or two locations. And second, maybe you should learn some history. VZW was the Number 1 carrier until SBC bought AT&T and merged Cingular and AT&T. So, it wasn't really a struggle... VZW was gaining on AT&T again and they bought Alltel and now are smacking them down with over 87 million customers to AT&Ts like 80 million. Now when you consider the overhyped & overrated iPhone & the fact that Alltel only netted like 10-12 million customers, being 7 million higher than AT&T doesn't seem like they were really struggling.

3. j.naueattrep

Posts: 24; Member since: Jul 19, 2009

T-mobile is going to gain more customers due to having better customer service. Last year and previous years, 60% of T-mobile's business was processed by an indirect dealer named The Mobile Solutions. If you have ever experienced one, you know how bad of a name they gave T-mobile. Recently, T-mobile bought out The Mobile Solutions and re-subleased the locations to better indirects and made others into corporate locations in an effort to quell The Mobile Solutions unethical business practices. This should give T-mobile a leg up to give customers a better overall experience and, of course, increase revenue.

4. AZNphoneGeek

Posts: 200; Member since: May 15, 2009

in my humble opinion, customert service doesn't mean that much. yeah i work in the industry and every major carrier's emphasis is on customer care and customer satisfaction. sprint has the cheapest unlimited plans, verizon has the largest in calling and carries status, att rides the iphone, tmobile is the most inexpensive for the most minutes. the bottom line usually comes down to the device. a good example is the G1 and tmobile. inferior network in every respect but the phone is still pretty cool. same with their sidekick. after having friends at every carrier and working for a few, most people just stick to what they like and continue to bitch about their carrier despite whoever they have. without a new LTE structure and massive build out on their voice network, i can't really see tmobile moving beyond 4th place. message DN...... hahaha

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