T-Mobile second quarter results are out, 50 000 customers loss, but revenue only slightly down3
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
|Customers, end of period1|
Thereof contract2 customers
Net customer (losses) / additions
|Minutes of use/contract customer/month2|
|Contract churn2, 3||2.40%||2.40%||2.30%||2.50%||2.40%||2.20%|
ARPU (contract)2, 4
ARPU (prepaid)2, 4
|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|
|Adjusted OIBDA margin9||28%||26%||29%||29%||28%||30%|
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