Thursday, May 1, 2014

T-Mobile’s 2014 first quarter results show record-breaking success of Uncarrier strategy

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T-Mobile released their first quarter results for 2014 and the news is very good for the Uncarrier. Since unveiling their Uncarrier strategy a year ago, T-Mobile has been pushing for changes in the way carriers do business. This has not only created ripples of change in the industry, it has also been good business for T-Mobile which saw record growth during the quarter. Perhaps the highlight of the numbers is the addition of 2.4 million customers, the first time T-Mobile has topped the 2 million mark. This was also the fourth consecutive quarter with more than 1 million net additions which T-Mobile says makes them the fastest growing wireless company. According to CEO John Legere, “…our results reflect the growing customer revolution that we’ve ignited.”


In his comments, Legere mentions the company is closing in on 50 million customers. He also claims T-Mobile added more net new postpaid customers than the rest of the wireless industry combined. The new customers are translating into revenue as this marked the fourth consecutive quarter of service revenue growth. However, T-Mobile did see average revenue per customer decline slightly by 1.4%, although this was better than the 2.9% decline of the previous quarter. T-Mobile customers ending service dropped to only 1.5% for the quarter.


All of these factors led to a 47% increase in total revenues year-over-year, heavily influenced by the inclusion of MetroPCS results. Smartphone sales totaled 6.9 million units during the first quarter and accounted for 92% of all units sold. T-Mobile saw adjusted earning dip 12.2% to $1.1 billion compared to the fourth quarter of 2013.


source: T-Mobile



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T-Mobile’s 2014 first quarter results show record-breaking success of Uncarrier strategy

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