T-Mobile's Net Income Crops 30% in Q1
Thursday, May 7, 2009
T-Mobile USA reported a 30 percent drop in net income for the quarter. The company had net income of $322 million in the quarter, down from $462 million in the year-ago quarter. However, that loss was a drop in the bucket compared to parent company Deutsche Telekom, which reported a $1.5 billion net loss in the quarter, compared to a $1.23 billion net profit in the year-ago quarter. The loss was primarily attributed to a $2.4 billion write-down of its troubled U.K. business.
Revenue: T-Mobile's total revenues, which includes services and equipment, was $5.40 billion, up from $5.19 billion in the first quarter of 2008. Service revenues jumped to $4.77 billion, up from $4.57 billion in the year-ago quarter. Data revenue, excluding messaging, jumped 30 percent to $467 million in the quarter, up from $358 million in the first quarter of 2008.
Net additions: In April, the carrier reported that it had just 415,000 net additions in the first quarter, down from 981,000 in the year-ago quarter and 621,000 in the fourth quarter of 2008. T-Mobile USA has faced increasing competition from Sprint Nextel's Boost Mobile unit and regional flat-rate carriers Leap Wireless and MetroPCS which offer an unlimited calling plans. T-Mobile began offering a $50 per month unlimited calling plan in March to customers who had been with the carrier for 22 months or more.
Churn: Contract churn fell to 2.3 percent, down from 2.4 percent in the fourth quarter of 2008. T-Mobile USA started a campaign in February to fight churn, and Deutsche Telekom said the plan has begun to show results.
ARPU: Blended ARPU was $48 in the quarter, down from $51 in the year-ago quarter.