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

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:









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












Thereof contract2 customers





    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      












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



1. remixfa

Posts: 14605; Member since: Dec 19, 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.

2. bigdawg23

Posts: 467; Member since: May 25, 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.

3. remixfa

Posts: 14605; Member since: Dec 19, 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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