T-Mobile earnings keep the good news rolling
Table flipper T-Mobile’s earnings are out today and, not to compete with Apple, it had better numbers to report. In fact, it gets downright boastful.
Total revenues were up 10.6 percent from this quarter last year to $8.6 billion with 1 million postpaid subscribers gained — good enough for Big Magenta’s seventh consecutive quarter with gains better than a million — and 807,000 prepaid adds. Those adds bring T-Mobile’s base up to 65.5 million subscribers total. The company turned positive on net income with a $479 million gain.
Average revenue per user for T-Mobile’s postpaid division came above $46, down 3.8 percent from the previous quarter, while MetroPCS made about $38-39. Postpaid customers’ bills generally went up 1.6 percent from last year to about $61.
The network now has 308 million potential customers under LTE coverage — it’s an expansion made possible by a higher-than-expected $1.3 billion in capital expenditures to improve 700MHz service. Furthermore, it has gotten an extra $1.35 billion in funding from Deutsche Telekom, likely for use in the 600MHz spectrum auction it is participating in.
T-Mobile calls this report a “blow-out.” Indeed, third-party numbers prior to the earnings report showed this off. We just have to wonder how long the bubble gum will last.