T-Mobile grows subscribers for the first time in four years in Q1 2013, but revenue drops

T-Mobile grows subscribers for the first time in four years in Q1 2013, but revenue drops
There’s a lot going on at T-Mobile recently - it unveiled its UNcarrier initiative and rebranding getting rid of two-year contracts, and its merger with MetroPCS got approved. Now, T-Mobile is reporting its financial results for the first quarter of the year, the time just before all of those huge moves happened.

There is a lot of good news - T-Mobile managed to actually add new customers for the first time in four years and churn dropped to its lowest in five years. At the same time, though, revenue dropped due to a general trend of postpaid customers leaving the carrier and getting replaced with prepaid ones.

Here is a quick rundown of T-Mobile’s financial highlights for Q1 2013:

  • postpaid net loss of 199 000 customers, still a 61% improvement on the year
  • 202 000 new prepaid customers
  • 34 million total customers, up 579 000 on the year
  • EBITDA amouns to $1.2 billion, down 7.5% on the year

T-Mobile is clearly undergoing a huge transitions, and while these results are not all rosy, growing subscribers s definitely a good start.

source: T-Mobile

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5 Comments

1. Federated

Posts: 263; Member since: Mar 06, 2010

Nice. I love T-Mobile.

2. Note2waitingonNote3

Posts: 87; Member since: Mar 19, 2013

T-Mobile is Definitely number 1. 2013 will be real big

3. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

Good to see them recovering. When it comes to carriers, Verizon is the best if you want coverage, and T-Mobile is the best if you want value. Luckily for me, I live in an area where I T-Mobile has 4G and Verizon is stuck on 3G, so I get to enjoy both value and coverage. :)

4. TheMan

Posts: 494; Member since: Sep 21, 2012

T-Mobile's definitely a favorite of mine because of what they've accomplished in moving from a strict 2G value play a few years ago to a national player. But they're definitely not the value they once were with the new plans. The subsidy transparency's a great thing for the consumer -- especially if the others adopt it -- but where a family might save $30-$50 on T-Mobile once, it's now closer to parity (under $20) with Verizon and AT&T. That'll mean it'll have to rely that much more on network performance and less on dollars and cents. I'm not so sure that's a good thing for the budget-minded

5. corporateJP

Posts: 2458; Member since: Nov 28, 2009

Well, now that they have the iPhone, get ready for those margins to crunch tighter. Witness.

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