T-Mobile US Inc (NYSE:TMUS) released the results from its most recently completed quarter, posting losses of $151 million or 19 cents per share on $6.88 billion in revenue, a 47% year over year increase mostly due to the acquisition of MetroPCS. Analysts had been expecting losses of 10 cents per share on $6.2 billion in revenue for the quarter.
Breaking down T-Mobile’s results
In the same quarter a year ago, T-Mobile US Inc (NYSE:TMUS) reported $4.68 billion in revenue. On a pro forma basis, total revenues rose 15.3% year over year on higher equipment sales and service revenues. T-Mobile sold a record 6.9 million smartphones during the first quarter, which was 92% of the total units sold, a slight increase from 91% in the previous quarter. This represents an 81% penetration of the carrier’s branded customer base.
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T-Mobile US Inc (NYSE:TMUS) reported a 33.3% year over year increase in service revenues, mostly because of the acquisition of MetroPCS. Service revenues rose 3.3% quarter over quarter because of growth in the mobile carrier’s customer base, which was partially offset by increasing adoption of Simple Choice and Value plans, which bring lower monthly charges than traditional plans.
T-Mobile is America’s fastest growing carrier
The carrier ended the first quarter with 49.1 million customers. T-Mobile US Inc (NYSE:TMUS) reported 2.4 million total net additions, including more than 1.8 million total branded net customers additions with more than 1.3 million branded postpaid net adds and 465,000 branded prepaid net additions. The carrier reported that this was the first quarter ever in which it had over 2 million net subscriber additions. It is also the fourth quarter in a row with more than 1 million total net additions, making T-Mobile the fastest growing wireless company in America
T-Mobile US Inc (NYSE:TMUS) reported more than 1.2 million branded postpaid phone additions, which the carrier said “dramatically outperformed the competition.” Gross additions rose 23% quarter over quarter and 136% year over year. Postpaid churn was 1.5%, a 20 basis point sequential decline and a 40 basis point year over year decline.
T-Mobile guides for 2014
The mobile carrier said it expects to see adjusted EBITDA of between $5.6 billion and $5.8 billion this year. T-Mobile US Inc (NYSE:TMUS) projects branded postpaid net additions of between 2.8 million and 3.3 million for the full year. The carrier expects to spend $4.3 billion to $4.6 billion on capital expenditures. T-Mobile believes the penetration of its lower cost Value / Simple Choice plans will be between 85%and 90% by the end of the year.