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Thread: T-Mobile Reports Second Quarter Results: 685k retail post-pay adds, 1.1M net adds

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    T-Mobile Reports Second Quarter Results: 685k retail post-pay adds, 1.1M net adds

    http://investor.t-mobile.com/phoenix...960&highlight=

    T-Mobile reported their second quarter results including 685k retail post-pay adds and 1.1M total net adds. Consumers seem to be responding well to T-Mobile's new strategy. Churn has also dropped significantly, down to 1.6% for post-pay.

    It's important to note that the 685k is for phone adds, not including connected devices. AT&T had 551k post-pay adds, but 398k of those were for tablets (leaving 153k post-pay phone adds). Verizon doesn't seem to break out their phone vs. connected device numbers, but T-Mobile claims to have led the industry with their 685k retail post-pay phone adds.

    Another thing to note is that 86% of T-Mobile's sales are smartphones. That's in-line with AT&T's 88% of new sales. Similarly, 72% of T-Mobile's retail post-pay customers are using smartphones. That's in-line with AT&T's 73% and a bit better than Verizon's 64%.

    It looks like T-Mobile is connecting with consumers and now with LTE to 157M POPs, their positioning for consumers is even stronger than it was last quarter. MetroPCS will be expanding into new markets to offer their pre-paid service which could give T-Mobile a boost in their pre-paid numbers in the future. The numbers look good and this is early in T-Mobile's new strategy. During the last quarter, T-Mobile had very little LTE. This quarter (3Q2012), they have LTE to about half of Americans. If they can match what they did in the second quarter for the rest of the year, they'll be looking quite strong.

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    This is the best T-Mobile quarter in years. It's nice!
    Bye!

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    iPhone helped


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    Quote Originally Posted by terryjohnson16 View Post
    iPhone helped
    I'm sure it did. I'd like to see what percentage of the smartphones sold were iPhones?
    Donald Newcomb

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    Quote Originally Posted by DRNewcomb View Post
    I'm sure it did. I'd like to see what percentage of the smartphones sold were iPhones?
    900K of the 4.3M smartphones sold

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    Quote Originally Posted by DRNewcomb View Post
    I'm sure it did. I'd like to see what percentage of the smartphones sold were iPhones?
    29% I beleive I read somewhere.

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    its been a great quarter .. technically is there any point in listing users as postpaid/prepaid anymore when there are no contracts? maybe regular and MVNO perhaps. Having more postpaid customers might not be good for the balance sheet as T-mobile fronts the cash for the device on EIP

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    Quote Originally Posted by archerian View Post
    its been a great quarter .. technically is there any point in listing users as postpaid/prepaid anymore when there are no contracts? maybe regular and MVNO perhaps. Having more postpaid customers might not be good for the balance sheet as T-mobile fronts the cash for the device on EIP
    The EIP means that even without a contract, users stick around until their device is paid off. This can be seen in the churn numbers: 1.58% for post-pay and 5.4% for pre-pay. Even without contracts, post-pay users stick around a lot more and, as such, are more valuable.

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    So with DT's investment of €500Mn($669million) and then their debt filling($500Mn) they are waiting to complete does this mean they will have a combined total of $1.1Billion to invest into their network?

    http://www.bloomberg.com/news/2013-0...er-merger.html

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    Quote Originally Posted by jarrodpd View Post
    So with DT's investment of €500Mn($669million) and then their debt filling($500Mn) they are waiting to complete does this mean they will have a combined total of $1.1Billion to invest into their network?

    http://www.bloomberg.com/news/2013-0...er-merger.html
    Wonder if they gonna hold it for the spectrum auction.


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    Quote Originally Posted by terryjohnson16 View Post
    Wonder if they gonna hold it for the spectrum auction.


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    Wouldn't it cost more for an auction? I thought the AWS auction cost them something along the lines of $4Bn, and with this being "beach front" spectrum I'm sure it would cost more unless the Gov. wants to "stimulate" the competition.

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    Quote Originally Posted by jarrodpd View Post
    So with DT's investment of €500Mn($669million) and then their debt filling($500Mn) they are waiting to complete does this mean they will have a combined total of $1.1Billion to invest into their network?

    http://www.bloomberg.com/news/2013-0...er-merger.html
    They said the $500 million was going to be used for general corporate purposes.

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    Quote Originally Posted by jet1000 View Post
    They said the $500 million was going to be used for general corporate purposes.
    Did the previous CEO neglect the company that badly they needed to invest half a billion dollars to revamp their corporate side?

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    Quote Originally Posted by jarrodpd View Post
    Did the previous CEO neglect the company that badly they needed to invest half a billion dollars to revamp their corporate side?
    No. "General corporate purposes" is what is typically filed along with debt filings when the company doesn't want to disclose what the money is going to be used for - it gives them leeway to use it for anything. It could be used to optimize the capital structure of the company, CapEx, R&D, M&A, sales efforts, increased working capital, etc. etc.

    The 500M Euro that people are talking about is not an investment by DT. It is merely TMUS putting an additional 500M Euro of its cash flow into marketing and customer acquisition activities. Given that the TMUS financials are consolidated into DT's finances, this impacts DT's reported cash flow. This shouldn't come as a surprise, DT telegraphed their intention on doing this early in the year when they talked about excess CF being available for such purposes in the US and Germany.

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    Quote Originally Posted by Julian View Post
    The 500M Euro that people are talking about is not an investment by DT. It is merely TMUS putting an additional 500M Euro of its cash flow into marketing and customer acquisition activities.
    Yes, you're exactly right. Someone even suggested that this supposed investment by DT was covered in the conference call. Well I listened to the entire conference call, and they never mentioned anything about a supposed "investment".

    http://www.youtube.com/watch?v=GASaWMavI8c

    They were simply talking about TMUS cash flow. They did mention the interesting point that as TMUS does better, they have to finance more devices through EIP and this reduces their cash flow. This could be one of the items they needed from the funds gained in the bond issue.

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