T-Mobile Adds 1.3 Million Monthly Subscribers, More Than AT&T And Verizon Combined

Posted: May 1 2014, 4:46pm CDT | by , Updated: May 1 2014, 9:04pm CDT, in News

T-Mobile Adds 1.3 Million Monthly Subscribers, More Than AT&T And Verizon Combined
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The wireless provider that is trying to brand itself as America’s “un-carrier,” T-Mobile, must be doing something right by eschewing annual service contracts: the company reported Thursday morning that during its first fiscal quarter of 2014, it added 1.3 million monthly subscribers, more than AT&T and Verizon combined during that same period. As a result — and despite missing the Street consensus on revenue and posting a net loss for the quarter — shares of T-Mobile are up more than 7% in early Thursday trading.

T-Mobile reported $6.88 billion in first quarter revenue, up 47% from the $4.68 billion reported in the year-ago period but falling under the $6.92 billion analysts were expecting. The company attributed the boost in revenue to the inclusion of Metro PCS results, which T-Mobile began to integrate and expand in July. On a pro-forma basis, T-Mobile said its revenue increased 15.3% year-over-year thanks to higher equipment sales and growth in service revenue. However, that growth came at a cost to T-Mobile’s bottom line: its EBIDTA fell 12% to $1.1 billion, and net income for the quarter was actually a $151 million net loss, resulting in a loss of 19 cents per share. Though this meets the analyst consensus, it marks a decline from the $107 million or 20-cent per-share profit reported for the same time in 2013.

Overall, T-Mobile added 2.4 million customers for the quarter, 1.3 million of which were branded post-paid customers, industry speak for customers who pay a monthly bill. This beats the 1.16 million combined post-paid customers that AT&T and Verizon reported adding during the same period. These additions also mark the fourth consecutive quarter with more than 1 million net additions for T-Mobile, making it the fastest growing wireless company in the country.

“A year ago I promised that we would bring change to what I called this arrogant US wireless industry. We are delivering on that promise and our results reflect the growing customer revolution that we’ve ignited,” John Legere, T-Mobile president and CEO, said in a statement Thursday morning. “We are now approaching 50 million customers, added 2.4 million net new customers in the first quarter alone, and posted our fourth quarter of consecutive service revenue growth, while once again adding more net new postpaid customers than the rest of the industry combined!”

Looking ahead to the rest of 2014, T-Mobile said it expects to add between 2.8 million and 3.3 million post-paid net subscribers for all of 2014 and projects that its full-year EBITDA will fall somewhere between $4.3 billion and $4.6 billion.

Following the release of the earnings results, shares of T-Mobile surged more than 7% in Thursday’s pre-market trading session and are currently up 8.09%. After posting a 73% return in 2013 trading, however, the stock has struggled, losing more than 12% of its value since the first trading day of 2014. Meanwhile, shares of Verizon and AT&T both ticked down in Thursday’s pre-market trading session, with Verizon down 0.5% and AT&T trading for an 0.3% loss.

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