T-Mobile Profit Hits $101M for Q4 2014, Reversing $20M Loss in 2013

By Todd R. Weiss  |  Posted 2015-02-19 Print this article Print
T-Mobile, earnings, revenue

In 2014, T-Mobile was the apparent target of several merger attempts. In October, French telecommunications company Iliad announced that it had ended its acquisition attempts for T-Mobile, while in early August Sprint dropped its own plans to buy T-Mobile after the move was opposed by regulators, according to reports. Sprint had been rumored for months to be seeking a merger with T-Mobile so that the two struggling companies could join together and fight harder to compete with mobile powers Verizon Wireless and AT&T. Iliad wanted to buy T-Mobile US to bolster its global aspirations.

T-Mobile's latest financial results were in contrast to the latest results from competitors Verizon, AT&T and Sprint, which all suffered losses. Earlier in February, Sprint reported a net loss of $2.4 billion in its third quarter of 2014, which was more than twice the loss of $1.04 billion one year ago. Sprint also had an operating loss of $2.54 billion, which included non-cash charges of $2.1 billion. The Q3 operating loss compared with an operating loss of $576 million for the same quarter one year ago, and included a $1.9 billion reduction to the Sprint trade name and approximately $200 million to reduce the carrying value of wireline network assets. Without those write-downs, Sprint's operating loss would have improved $169 million year-over-year, the company stated.

In January, Verizon reported Q4 losses of $2.2 billion, largely due to the cost of non-operational expenses including benefits and pension payments, according to an earlier eWEEK report. Verizon's Q4 revenue was $33.2 billion, which was a 6.8 percent increase over the year-ago quarter, when revenue came in at $31.07 billion. Verizon is the largest wireless carrier in the United States. The $2.2 billion Q4 loss was a $9 billion shift from one year ago, when the company posted $7.9 billion in profits for that quarter, according to the company's figures.

Also in January, AT&T reported a net loss of $3.9 billion in the fourth quarter of 2014, though its revenue of $34.4 billion rose 3.8 percent from the same period the previous year. The fourth-quarter losses were due to non-cash charges, such as actuarial losses on benefit plans, non-cash write-offs of some network assets, merger and integration-related expenses, and other expenses, the company said. Loss per share was 77 cents, compared with $1.31 earnings per share that was posted for the same period one year ago, according to AT&T. The $3.9 billion fourth-quarter loss was quite a drop from the $6.9 billion in net profits that the company posted a year ago.


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