T-Mobile USA Reports Second Quarter 2008 Results

[lewton]

T-Mobile USA Continues to Invest in Network Quality and Reports Second Quarter 2008 Results


Highlights:

-- $1.58 billion Operating Income Before Depreciation and
Amortization ("OIBDA") in the second quarter of 2008, up 14%
from the second quarter of 2007

-- 668,000 net new customers added in the second quarter of 2008,
of which almost 80% were contract customers

-- Service revenues of $4.9 billion in the second quarter of
2008, up 16% from the second quarter of 2007

-- Continued focus on improving network quality with
approximately $1.1 billion invested and 1,000 new cell sites
built in the second quarter of 2008

-- Ranked highest in wireless retail sales satisfaction according
to J.D. Power and Associates

[terryjohnson16]

I bet half of those people left because of the new iphone. T-Mobile is doing way better than Sprint. Sprint lost 900,000 customers last quarter.

[Scottish Skyedance]

Wirelessly posted (HP 211 and SE Z780: Mozilla/4.0 (compatible; MSIE 6.0; Windows CE; IEMobile 7.7))

it looks decent, about the same as I expected (net add 400-700k)

[SHoTTa35]

For comparison this is their first quarter results:

http://biz.yahoo.com/bw/080508/20080507006579.html?.v=1

-- 981,000 net new customers added in the first quarter

-- Total customer additions of 2.1 million, including acquired SunCom base

-- Service revenues of $4.6 billion in the first quarter of 2008, up 14% from the first quarter of 2007

-- $1.44 billion Operating Income Before Depreciation and Amortization ("OIBDA") in the first quarter of 2008, up 18% from the first quarter of 2007

-- Contract customer churn 1.7% in the first quarter, down from 1.9% in the first quarter of 2007

-- Acquisition of SunCom Wireless closed February 22

-- 3rd generation UMTS/HSDPA network launched in New York City on May 5 - 3G network to lay the foundation for future growth

[HF 1 Is Yo Daddy]

On the upside, they are making more money now versus last quarter, which is impressive considering that there were only 668,000 adds

[money69]

Very good to know, hopefully most of that 1.1 billion will be in 3G investments.

[Candygoblin]

Ouch. Contract churn was actually up 20 basis points. Sad to say, but that's probably higher than Sprint postpaid cdma churn. They do point out that the two year anniversary of two year contracts was during the quarter. Data arpu declined sequentially.... Terry might be right...iphone and the growth of data centric devices might be pulling people away. I know Sprint said yesterday that over 30% of their phone sales now are smartphone/pda types.

14000/42000 sites now 3g capable

[Scottish Skyedance]

Wirelessly posted (HP 211 and SE Z780: Mozilla/4.0 (compatible; MSIE 4.01; Windows CE; PPC; 240x320))

am I missing something?
I don't see churn rate, my guess is 1.9% post

[yoshiki2]

If they do not have an excellent data centric phone, costumers will continue leaving..

[bigsnake49]

Wirelessly posted (HP 211 and SE Z780: Mozilla/4.0 (compatible; MSIE 4.01; Windows CE; PPC; 240x320))

am I missing something?
I don't see churn rate, my guess is 1.9% post

Actually it was 1.7% postpaid. See OP.

[Scottish Skyedance]

Wirelessly posted (HP 211 and SE Z780: Mozilla/4.0 (compatible; MSIE 4.01; Windows CE; PPC; 240x320))

actually, sidekicks has protential to be good data device
add AF on the cam, youtube support, mobitv and add BET on mobitv channel and see what happens

[Danny4G]

T-Mobile has a very large prepaid subscriber base which adds to their quarterly churn rates.

There is a lot of money to be made in prepaid, but often at the cost of a loss of loyalty.

[Candygoblin]

Actually it was 1.7% postpaid. See OP.

Naa he's right...it was 1.7 in Q1. Contract churn was 1.9 this Q.