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T-Mobile USA Q4 results show dropped revenue year-on-year

updated 10:02 am EST, Thu February 28, 2013

Poor results could hamper impending MetroPCS merger vote

T-Mobile USA lost profits, and customers in the fourth quarter of 2012, though increased its level of revenue from the previous quarter, according to recently-released company reports. Total revenues of $4.9 billion resembles a 5.2-percent drop year-on-year, with income dropping by a quarter to $1.05 billion compared to the same quarter in the previous year.

Contract customer numbers have dropped by 515,000 according to Engadget, a continuation of the customer exodus in the third-quarter results which saw 492,000 leave the service. Branded prepaid customers grew for the sixth consecutive quarter, the rate of additions increasing from the 160,000 in Q3 to 166,000.

Aside from the loss of customers and revenues, T-Mobile does still have things to be optimistic over. About 30-percent of its branded contract base consists of Value plan subscribers, either purchasing devices up-front or bringing their own to the services in exchange for a lower monthly fee, with 1.3 million customers opting for the cheaper price plans in the fourth quarter alone. Approximately 100,000 iPhone customers are switching to T-Mobile through this option every month, something that will likely increase once the company starts offering Apple products later this year.

The news of poor quarterly results may spook shareholders away from accepting the merger between T-Mobile USA and MetroPCS, the vote for which will reportedly take place on March 28th.

by MacNN Staff





  1. Mr. Strat

    Forum Regular

    Joined: 01-23-02

    I'm gone

    Well, they lost me last year. After all the problems I had with the G2X, I finally reached the breaking point and switched to AT&T/iPhone 5. This caused me to break my TMO contract, and argue as much as I did, still got stuck with the ETF.

    But I'm rid of their crappy service and crappy phone. TMO used to be a decent company.

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