T-Mobile Says Q2 Was a Winner and There's Still More to Come
T-Mobile posted Q2 successes by every measure and said that with customer wins coming from AT&T, not Sprint, there's plenty of opportunity ahead.T-Mobile's executive team headed to the New York Stock Exchange July 31, to announce, with television cameras waiting for post-call interviews, the throw-a-party level success of their fiscal 2014 second quarter. EBITA (earnings before interest, taxes, depreciation and amortization) reached $1.45 billion, up 33 percent from the quarter before. T-Mobile also led the wireless industry in total revenue growth (8 percent year-over-year) and service revenue growth (7.1 percent year-over-year) during the quarter. It added 1.5 million new customers, making for five consecutive quarters of 1 million-plus quarterly additions. And of those new customers, 579,000 were branded postpaid—a figure that T-Mobile CEO John Legere was quick to point out is "more than the other three [major carriers] combined."
Even tablets—which T-Mobile began selling not long ago and which got off to a slow start—rallied during the quarter, thanks to offers such as "Operation Tablet Freedom," which cut hardware pricing and included an offer of free data each month.
"No one needs to wonder what happens when the big guys beat up on the little guy. It's been happening for two or three quarters," he continued. "And these are not huge discount programs we're offering. These are very profitable programs that we can sustain." Sprint, announcing its second-quarter results the day before, shared that it had lost 220,000 customers during the quarter—an improvement over the 383,000 the quarter before. Legere noted that there's "an assumption" that Sprint's losses are T-Mobile's wins, but this is not the case. "Most of them are former AT&T customers," said Legere. "That means the size of the opportunity continues to be huge."