T-Mobile is Once Again Unprofitable Despite Subscriber Gains

[dgstorm]

The "Un-Carrier" has become Un-profitable again. This is despite the fact that they have made huge subscriber gains. T-Mobile added 1.38 million postpaid subscribers and 410,000 prepaid subscribers. This was nearly twice as much as the 785,000 postpaid subscribers which AT&T added over the same quarter, although it is a bit less than Verizon's 1.5 Million added postpaid subscribers.

Even though T-Mo made great gains in new subscribers, they posted a decline in profitability which was a net loss of $0.12 per share. This was much worse than estimates which projected a net profit of $0.03 per share. Here's a quote with more of the details,

That said, these subscriber gains have come at a cost: T-Mobile reported a net loss of $0.12 per share even though the consensus estimate was that the company would post a net profit of $0.03 per share. The carrier also whiffed on revenues, as it reported $7.35 billion on the quarter versus the consensus estimate of $7.45 billion. T-Mobile’s churn was also at 1.6%, which is lower than in previous quarters but still a long way from AT&T and Verizon’s churn rates that were both right around 1% last quarter.

It looks like competition in the wireless industry is good for consumers but seems to be hitting the lower tier carriers pretty hard.

Source: BGR

 

[johnomaz]

TMobile is gaining customer base and expanding its network. Its expensive stuff. They are paying off contracts which to me is expensive as hell. I think they are playing the long term game and not going for the early money grab.

 

[pc747]

TMobile is gaining customer base and expanding its network. Its expensive stuff. They are paying off contracts which to me is expensive as hell. I think they are playing the long term game and not going for the early money grab.

Big gamble, go big or go home. At this point it is all t mobile can do. They were already looking up so they had to gamble plus it helps that they are spending att's money (money obtained from att from failed buyout). They have some room to gamble and if they are able to succeed it will be a big victory. Once they get their infrastructure shored up they be a force and the big 2 knows that hence the moves to try and look like they are offering the same choices as T-Mobile.

 

[mountainbikermark]

Big gamble, go big or go home. At this point it is all t mobile can do. They were already looking up so they had to gamble plus it helps that they are spending att's money (money obtained from att from failed buyout). They have some room to gamble and if they are able to succeed it will be a big victory. Once they get their infrastructure shored up they be a force and the big 2 knows that hence the moves to try and look like they are offering the same choices as T-Mobile.

Don't they also have $30 million coming from Sprint that was guaranteed up front when they tried to merge?

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[cybertec69]

T-Mobile will eventually merge with another big name, it could be Dish Network, they can also use Dishes spectrum. They will not survive alone.

 

[pc747]

Don't they also have $30 million coming from Sprint that was guaranteed up front when they tried to merge?

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Hmm...be interesting to find out if that is the case. If so T-mobile need to just keep allowing people to merge with them, fail, and they get paid.....next they going to beg Verizon to take a crack.

 

[mountainbikermark]

Hmm...be interesting to find out if that is the case. If so T-mobile need to just keep allowing people to merge with them, fail, and they get paid.....next they going to beg Verizon to take a crack.

Couldn't find the thread about it. It was pre redo of the site and it looks like it didn't make it to the new format. All the stuff I posted in before the update isn't showing up under "participated"

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