T-Mobile's Uncarrier Plans Boost Subscriber Growth - Still Show a Loss in Q2

So which do you think added to T-Mobile’s biggest postpaid subscriber growth in four years? Was it T-Mobile’s Uncarrier Plans, or was it the fact that this is the first time it has ever offered an iPhone? The results for the second quarter 2012 had T-Mobile losing 557,000 contract customers.

So far the second quarter of 2013 has T-Mobile stating that it added 1.1 million subscribers during the quarter, this includes 685,000 contract customers. T-Mobile managed a $207 million profit in Q2 2012 unfortunately it rocked to a $16 million loss last quarter on revenue totaling $6.23 billion. This was a rise from $4.9 billion for the same time last year.

T-Mobile CEO John Legere said, “T-Mobile’s Uncarrier approach has clearly resonated with consumers. By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers. We are just beginning and we will continue to apply this innovative thinking to the Uncarrier offers we create and to the internal operations of our company, which taken together are driving significant shareholder value creation.”

T-Mobile said it expects that the full year adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) will fall between $5.2 billion and $5.4 billion in 2013. The feeling is that the Uncarrier Plans continue to make groundbreaking moves to revolutionize the wireless industry. This will result in strong customer growth of 1.1 million net additions including 688,000 postpaid net additions.

I won’t bore you with all of the details from T-Mobile’s U.S. Reports Second Quarter 2013 Results that was released on August 8 in Bellevue, Wash. However, some of the highlights are as follows:

• Total customer net additions of 1.1 million, an improvement of 1.3 million net additions year-over-year
• T-Mobile led the U.S. wireless industry in the second quarter with 685,000 branded postpaid phone net additions
• Branded postpaid net additions of 688,000, an improvement of more than 1.2 million year-over-year
• Total branded customer net additions of 678,000, the strongest growth in four years
• Record low branded postpaid churn of 1.58 percent, a decrease of approximately 50 basis points year-over-year
• Adjusted EBITDA of $1.1 billion – pro forma combined(1) adjusted EBITDA of $1.3 billion
• 4G LTE network rollout ahead of plan with 157 million people covered in 116 metro areas
• Successful execution of major strategic initiatives including the launch of the iPhone, the launch of Simple Choice and JUMP! and the pending spectrum acquisition from U.S. Cellular
• Rapid progress with the integration of MetroPCS – expansion of MetroPCS brand into 15 new markets