T-Mobile US reports best ever quarter with 2.4 million net additions

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Wow! We knew it was going to be a good quarterly result following the Uncarrier 4.0 announcement in January, but we weren’t expecting this. T-Mobile added 2.4 million subscribers to its ranks in Q1. It’s the first time the company has gone over 2 million net additions, and is therefore the companies best ever quarter. T-Mobile now has 49.1 million customers.

Highlights from the first quarter include:

  • Total net additions of 2.4 million, first time over 2 million
  • 4th consecutive quarter with over 1 million net adds
  • It is the fastest growing wireless company in the U.S.
  • Branded net additions of 1.8 million, including 1.3 net postpaid adds
  • Branded postpaid churn down to 1.5%

Which ever way you look at it, this is an impressive result for T-Mobile. And, while other carriers have reported net subscriber losses (Sprint/Verizon), T-Mobile is continuing to show it’s got what it takes to compete on a quarter-by-quarter basis.

“A year ago I promised that we would bring change to what I called this arrogant US wireless industry. We are delivering on that promise and our results reflect the growing customer revolution that we’ve ignited,” said John Legere, President and CEO of T-Mobile. “We are now approaching 50 million customers, added 2.4 million net new customers in the first quarter alone, and posted our fourth quarter of consecutive service revenue growth, while once again adding more net new postpaid customers than the rest of the industry combined!

I remember how elated I was when Magenta announced results from its final quarter in 2013, adding over 1.5 million customers, and this has shown that the company is far from done. What’s more, it also shows that – given the opportunity to escape contracts with other carriers – customers are delighted to switch over and try T-Mo out. This marks the first quarter since John Legere announce the ‘Contract Freedom’ phase of the Un-carrier movement in January this year in which T-Mobile offers to pay any ETFs up to $350, and buy old phones back up to a value of $300. And it’s clearly working.

T-Mobile’s conference call to discuss these results is due to kick off in about 3 hours. I’ll be listening in and bringing you my thoughts once it’s done.

But for now, congrats T-Mobile! Way to go.

Source: T-Mobile

 

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  • Redditor

    Way to go TMo! Switched from Verizon 2/14 and loving the unlimited LTE data! Hopefully this progress continues until it overtakes Sprint.

    • Jared

      Welcome to the party! We are really happy to have you join!!!! Ive been with T-Mobile since 2010 when i left the Big Red. I couldnt have been more happy with the move. Just wait till we launch 700Mhz block A/Band 12 later this year. Our service will REALLY improve. Hope we bid and win the 600Mhz middle of next year too.

    • dm33

      Me too. I left Verizon in 3/14. Generally happy w TMo except coverage at home stinks. New tower is in place but not live yet. Have also had a heck of a time (5 calls to CS) just to get the 1.2GB free data for iPad.

    • Verizonthunder

      Same here left Verizon for T-Mobile. Verizon was no longer a reliable network for me.

    • Paul

      WELCOME TO MAGENTA!

  • taron19119

    6 million to go before t-mobile becomes number 3 wireless carrier in America

    • nd5

      LOL, really it’s only 3 million! If Sparky loses 3MM and T-Mobile picks them up… then we win!

      • taron19119

        Where u get that number frome because
        Sprint has 54 million customers snd t-mobile has 49 million customers

        • sushimane

          How did u get sprint 45 million I’m looking at 53 million? But T-Mobile is quickly narrowing the customer number which I’m happy for.

        • taron19119

          I had changed it Sprint has 55 million

      • Paul

        You are correct with your math, and I hope to see it happen sooner rather than later.

      • Jay J. Blanco

        Thank you for correcting.. and i qoute “At the end of the quarter, the Sprint platform served nearly 54 million subscribers” T-Mobile will be #3 and Son Softbank and Sprint will be looking stupid. Son should have bought T-Mobile in the first place and left Sprint to burn

    • elbrun

      that means may-2015 t-mobile 3rd place. stay strong guys/girls we can do this. i know we can.

  • Wire

    I hope it’s the data whores who are leaving Sprint for T-mobile. Take all of them! They’re going to bring T-mobile’s network down to the ground. Watch!

    • hanfeedback

      It’s obvious you don’t know what you’re talking about. Sprints network was brought to the ground because while tmobile and other we’re running fiber to sites sprint decided it would pawn off adding back haul to clear and their WiMAX sites. Now that sprint needs back haul to their own sites it takes a long time to get installed, that is why sprint is a disaster right now, it’s their own fault.

    • Alex Zapata

      You so funny! NOT

    • vrm

      sprint also offers unlimited data. sour grapes, huh ?

    • Jay J. Blanco

      wideband LTE and 700mhz will take care of that. Plus AWS auction.

  • princedannyb

    I hope this changes DT’s mind about wanting to sell.

    • MrJigolo

      Seriously. T-Mobile’s future is only looking brighter (without Sprint).

  • sushimane

    That’s what I’m saying T-Mobile keep it up. Maybe after this quarter DT wouldn’t want to T-Mobile anymore. We all know FCC and doj see how much T-Mobile is growing when or if Softbank plan to bid the FCC and doj would automatically reject the bid and make softbank pay the break up fee and bring sprint further down the drain which I’m looking forward for. But they do have to follow the rules and do the 180 day review. I saw the interview with son CEO of softbank the other day the only reason he want to merge sprint and T-Mobile together to rival the big two and be #1. I just don’t see a good legitimate reason why. Open up ur wallet son T-Mobile all day.

    • vrm

      that #1 position will not last more than a few months as they will bleed subscribers by the millions. Of course, he doesn’t care, as long as he can claim to be #1 for 1 day.

      • sushimane

        Yeah it seem like that in my opinion. So that’s y I could see the FCC and doj reject the bid after the 180 day grace period. That’s just mean millions of dollars would go toward DT which would probably invest if on T-Mobile

  • Philip Totaro

    Company is still losing money though. $151M loss at 19 cents a share due to these ETF buyouts is hurting. If the subscriber base expansion comes at the price of profitability, then fees will inevitability have to increase to pay for this party. Already seen it a bit last year with the simple choice rate adjustments. Hoping the growth continues, but the company needs to make money, otherwise they can’t continue being the unCarrier for long.

    • itguy08

      Many companies don’t turn a consistent profit *cough Amazon, Cough*. And They have already stated the buyout is roughly what the subsidy was so it’s really a wash but marketing genius.

      If I were a shareholder, I’d rather take a short term loss for a better network, more paying customers, and more long term stability/profitability over profits.

      • Guest

        ETF buyouts only accounted for 21% of the 1.3 million postpaid additions…

    • nd5

      Is the loss more a reflection of their aggressive capital spending for network upgrade than of ETF buyouts? Once they have their network fully upgraded and on-par with the two bigger players, wouldn’t we expect to see them turning a healthy profit?

      • vrm

        capex will be ongoing to varying degree but these are operational costs. With those costs alone, tmo has shown profits in previous year, even with a smaller revenue.

        • yeah right

          they spent near $1 billion on CAPEX over the course of the three months. IF they only spend $800 million they would potentially have generated a profit. But I think their goal is to expand as rapidly and as quickly as possible.

    • S. Ali

      That is the same loss Sprint had, except they lost customers.

    • dm33

      Not true. Rates do NOT have to increase to pay for this party. They will lower acquisition costs. Stop paying ETFs from others. There is no cost for having someone on the network paying for their service. Raising rates would hurt revenue more than boosting profit. They can lower acquisition costs now that Tmobile has momentum.

    • vrm

      no, long term customers will accrue to the top and bottom lines.

      For e.g., a million subs at minimum of $50/mo -> $600/yr -> $600 million to revenue. That is just 1 million and they are adding millions every quarter.

      After the initial acquisition, there is no additional cost per subscriber. It is only (operational costs + admin costs) just like any other carrier in any other scenario ( and those costs already generated profits, even with a smaller subscriber base).

      There is a reason the co. is doing what it is doing – it IS a sustainable business.

    • Fabian Cortez

      ETF buyouts only accounted for 21% of the 1.32 million postpaid additions…

  • http://freedomisthedream.com Wesley

    That’s pretty dang awesome. I really hope they can keep the momentum going. The conversion of 2G to LTE everywhere should help a lot with fast coverage in more places. Now they need low frequency spectrum in more states, especially East Washington. Don’t sell to Sprint either!

  • JTrip

    Awesome. Now stay away, Sprint…or else!

  • ⓜ@®!ⓞ G@®CI@ ™

    Im I reading this right Verizon reported a loss of subscribers? While T-Mobile added 2.4 Million customers in a quarter holy shi#! The competition must be crapping there pants this is amazing, congratulations Mr Legere, Nevile Ray and the rest of the T-Mobile Team including employees and us happy customers who convince others to switch were all doing a great job! Now lets finish by passing Sprint this year !

    • Verizonthunder

      Yes i am one of those who defected to T-Mobile as Verizon was no longer a reliable network.

      • Paul

        WELCOME TO MAGENTA!

        • Verizonthunder

          Thanks I love the service and my LG g flex

    • vrm

      sprint lost 750k phone subscribers- they made up part of it by tablet subscribers.

      verizon also phone subscribers- first time in years. Big change from adding close to million in previous Q to losing in this.

      Good to see at&t and t-mobile taking subs away from the other two. I would like to see vz start losing millions of subs a quarter going forward.

      100 million loss for 2.4 million subs is a good deal IMO. These subs will pay for themselves and more, LT.

      just venting for a good cause.

      • vrm

        >> 100 million loss for 2.4 million subs

        esp considering sprint is losing many times that AND losing subscribers !

        • hanfeedback

          Exactly, Sprint did loose more than that and lost subs also.

  • Matt

    While I’m satisfied with T-Mobile’s service, I’m going to fall short of liking them. I won’t ever like a corporation because that sets a dangerous precedence. A corporation is self-serving and simply because you like them, doesn’t mean they like you and the word, “like” implies a friendship. I often wonder what ISN’T being said ….

    I don’t see why anyone should “cheer” on a corporation. Corporations aren’t sports teams and they aren’t even entities to be looked up to. Trust me, the moment they can do something to make extra money at the expense of you and I, they will.

    • steveb944

      The reason we should be excited is this extra revenue gets us better service. Also because their competitive stance is working, it finally makes the US mobile industry a little bit better.

    • Paul

      Funny enough, our corporation, especially the CEO, actually listen to what the customers gripe about. A recent example would be the business discounts. They changed their plan and allowed those of us that already have it to retain it.

      I agree with not feeling as though a corporation is by BFF, but I like when a company actually listens to their customers. I feel that Magenta does that.

    • itguy08

      “I don’t see why anyone should “cheer” on a corporation. Corporations aren’t sports teams and they aren’t even entities to be looked up to.”

      Nor are sports teams….

    • fisher of men

      What kind of idiot remark is this? Sports teams are trying to make money off of you as well. How do you think the players, staff, and owners get paid? This world recognizes one thing and that is money. You should cheer for whatever makes you money and if you think you would act any differently then one of these big corporations you are in need of some self searching because in the end we are all scumbags.

    • hanfeedback

      Ok, so they need to make money to stay in business, big deal, I like Tmobile as a company and quite frankly if I can add a tablet or need an extra phone I will do it and pay a little extra because I want them to succeed. Perhaps you should get your phone service from the Us government since they are the only ones who constantly hand out things for free.

    • bob90210

      Don’t be surprised by the responses of the wolf pack. Tmonews is fan site for T-mobile so you will find many defenders of the brand. Sports teams or celluar phone service companies, some people like to cheer multi-billion dollar organizations run by millionaires.

  • Paul Garrison

    The funny part in all of this is that Son said a merger is need to make REAL competition. Looks like T-Mobile is all of gum and kicking a…. This is what Sprint should be doing. If T-Mobile stays separate and gets more spectrum, it will get great for customers in the future.

  • Jay J. Blanco

    Whoaaa T-Mobile really cleaned the clocks Le the analyst said. Go Magenta!!

    So I called customer service last night and got a agent in 55 seconds. I was like wow!!

    Sprint better lookout. Magenta is coming!

    • Trevnerdio

      I also love that you can say “representative” right off the bat now.

  • Ruskastud

    m/ m/

  • Paul

    BOOM
    Shalakalaka

    Sprint wants to be BFFs, Big Blue is trying to keep up with us even though they still charge more. Now, Big Red will likely turn it’s attention to Magenta for taking many of it’s customers.
    BIG IT ON!!

  • mingkee

    This is a major gain though T-Mobile has to pay big price on aggressive network expansion and upgrade.
    Sprint, on the other side, even its right hand doesn’t know what left hand is doing. This is a reason why they are suffering major loss; something worse is, most of the customers moved from Sprint to T-Mobile are getting much better service and this is making a “domino effect” and it makes Sprint looks even worse, and it is reflected on Q1 result.
    If the trend keeps going, T-Mobile can easily pass Sprint and become number 3. This is why Sprint wanted to buy T-Mobile because the company wanted to cover its failure and drag both down to HELL!

  • Nearmsp

    Market share is all fine and dandy. T-mobile’s costs mainly driven by paying out contracts for those leaving AT&T and others has led to doubling of expenses. T-mobile went from making a profit last year to a loss this quarter. To quote: “The mobile service provider two-thirds owned by Deutsche Telekom AG lost $151 million, or 19 cents per share, in the quarter compared with a profit of $107 million, or 20 cents per share, a year earlier. ”
    Further, Sohn from Softbank has promised T-Mobile CEO Legere that he will be the CEO of the combined Sprint and T-mobile. Watch for Spring filling the troughs of our politicians to get their support for the take over.

    • vrm

      and watch subscribers leave by the droves until the combined co. is left with 50 million subs.

      I do agree that corruption prevails and Son has already bought the “capital markets” ( its all taxpayer money anyway) and buying politicians is easy. I will leave for at&t and imagine most others will, too. at&t will be the biggest beneficiary of such a “merger” due to the device compatibility.

      • bkin94

        I’m pretty sure most people won’t really care. Especially if prices don’t change.

        • hanfeedback

          Its not about price, I came from Sprint several months back, Im in Houston, this market should be one of their best after NV, Sprint is terrible, their service sucks. People would leave because they know how Sprint is.

        • vrm

          you are so wrong ! It is the un-carrier hype that is drawing many to tmo. That will vanish in a puff of smoke.

          And also, don’t assume that sprint will continue the same plans. The costs of maintaining two different networks, huge debt that is likely to be incurred to buy (if it weren’t taxpayer money printed in proxy by wall street, that would never be “lent”), prices are bound to shoot up.

        • Jay Holm

          What is all this talk about “tax payer” money???

  • agl82

    Postpaid Subs by Carrier (Q1 2014):

    Verizon – 97,273,000

    AT&T – 73,291,000

    Sprint – 30,257,000

    T-Mobile – 23,622,000

    Sprint and T-Mobile, even as a combined company, have a huge uphill climb to even get close to AT&T’s postpaid subs.

    • jeff

      Your numbers for Sprint and T-Mobile are wrong . T-Mobile is 49.1 million reflect above report. Sprint 56 million or so. Verizon is 101,000,000 or so AT&T a hair below.

      • bkin94

        I think the 49 number is total customers. This comment is about post-paid subs

        • Jay J. Blanco

          sprint has 54 million its on their webaite if you read the 1Q 2014 report.

        • John

          If you read the financial report it says just under 54 million. If you look at the numbers breakdown in the Q1 2014 financial statement the actual number is 53,551,000 total subscribers. However in the paragraph summary they say just under 54 million total subscribers

        • Jay Holm

          Still a ways to go before T-Mobile takes the #3 spot, huh? Q1 next year?

      • agl82

        These are postpaid (contract) subscribers, the most lucrative subscribers in the industry.

      • John

        Wrong sprint Q1 2014 had a total of 53,551,000. So Sprint had around 53.6 million at the end of Q1 2014. Sprint most recent financial statement for Q1 2014 stated they had just under 54 million subscribers total. A quick google search for sprint Q1 2014 would reveal this. Thus there’s no excuse for this fiasco.

    • 21stNow

      What’s the source for your numbers?

    • dtam

      and we don’t want them to be combined….

    • mingkee

      Don’t combine with failed company.

  • mreveryphone

    Nice! Now let’s use that revenue to build out the network in between big cities

  • KingCobra

    Looks like even the almighty Verizon felt the heat from T-Mobile this quarter. Job well done.

    • Anne Droyd

      Hell yeah!!!!!

    • kalel33

      The article is not correct. Verizon had a net add of 539,000 subscribers.

  • hanfeedback

    The best thing Tmobile can do now is get 700A out ASAP and devices. They have it in big population centers, Texas, Pretty much all of Florida, the NE and California. They can make huge inroads in the NE with low band now, which is Verizon’s backyard.

  • Fabian Cortez

    It is important to note that out of the 1.32 million postpaid additions, only 21% took the ETF offer.

    • hanfeedback

      Excellent point and thanks for pointing that out.

    • xmiro

      ha! Interesting stat

  • archerian

    The $156M loss must be from Mike Sievert and his Blackberry $200 trade-in fiasco…

  • stockholder

    As a stockholder I am proud to see the large number of subscriber additions but disturbed by the continued loss that grows larger with each passing quarter. I want to see Legere spell out clearly the path to making T-Mobile a profitable substainable company. Right now the stock is high, which Im proud of, but if a merger doesnt happen and they continue to loose money the stock I fear will slide greatly in the future. So in my opinion @Johnlegere needs to explain how the company plans to make money and not just add customers. Lets here it John, how are you gonna make me more money?

    • thepanttherlady

      You’re probably better off tweeting your questions to him directly.

      • Jay J. Blanco

        I’m a former Metro PCS stock holder and a tmobile customers. I believe in order for tmobile to profitable is to expand Metro PCS retail base. As well as Tmobile to the new LTE Markets that’s only 2G once the process gets rolling. Then we’ll grab even more customers.

        • Cellphonetech

          Expand Metro PCS??? I don’t think so. They have no desire to do this as you can see they are already shutting down metros NETWORK in some big markets. I think tmobile at some point really wants to get rid of metro completely. I knew when they bought them it was more for the spectrum. Tmobile will be posting profits very soon but sometimes you have to sacrifice profits and increase your customer base. Keep in mind it wasn’t crazy long ago tmobile was losing MILLIONS of customers and still posting healthy profits! Profits aren’t always the end all be all. I mean look at Sprint lol

        • Kidney_Thief

          He’s not talking about expanding the MetroPCS network, but talking about expanding their brand to other markets, which they’ve already been doing.

    • vrm

      maybe other “stockholder”s are smarter and savvier and they figured out the plan, which is why they are driving up the stock price.

    • northrode

      As a t-mobile customer (not stockholder) I appreciate the moves the company has made. But I still wonder when the company will start turning a profit. These moves (such as paying ETFs) are great PR but can be a drag on the company financially.

    • xmiro

      I assume you have the same complaint about Amazon since they too make hardly any profit and used to run red for a long time?
      The network needs new antennas, spectrum, and LTE.
      If you’re a short term investor who wants profit next month then maybe reconsider your investment

      • Laststop311

        agree with you, t-mobile was so far behind everyone they had to make these expensive choices to bring them back in the game. When the 600mhz auctions finish up t-mobile will have the bandwidth to make 20+20 LTE their gold standard. Then once they finish the complete overhaul of 2g to LTE and use their new low frequencies to cover a lot more rural areas their expenses will come way down and profit will skyrocket.

        You have to spend money to make money and once t-mobile finishes all this Verizon and att will be crapping their pants.

    • kalel33

      “lose”, not “loose”.

  • Paul Garrison

    Only a fool that drinks the Kool-Aid of big corporations believe that a combined T-mobile and Sprint will be good for consumers. I’m for the consumer and he have REAL competition right now. I really hate that with a little money a company can payoff these traders in D.C. and screw consumers. I MEAN ALL OF THEM IN D.C.!

    • xmiro

      so reserve that for when Sprint makes a bid, and then let the FCC know
      Any merger with T-Mobile won’t be a smooth sailing especially in an election year.
      There are too many unknowns right know, as to what the FCC would do and most importantly the DOJ which is the one with the stick

      • thepanttherlady
        • xmiro

          ah yes, that… can’t own more than 1/3 of spectrum in a given market

          I’ve thought for some time that T-Mobile and Sprint should combine their networks instead.

          To add to the that, a lot of the spectrum licenses in the 800, 900 and PCS range held by the carriers are going to expire in about 5 years or less, so if the FCC had any teeth they could attach conditions for renewal of those licenses. Or do what Europe does, carve out a block of spectrum and say this goes to a third or fourth carrier who would like to bid on it?

  • kalel33

    Cam, Verizon had a net add of 539,000 postpaid subscribers. The article states they had a net loss but that’s not factual.

  • Anne’s HemRoids

    How is putting actual data being a troll?
    Want to know whats worse than a troll, an educated fanboy :)

  • thepanttherlady

    I thought I’d deleted that post but it’s gone now. Not sure what his/her problem is but it’s completely uncalled for.