Analyst predicts $7.9 billion revenue in T-Mobile Q4 earnings report

Uncarrier 8.0 Data Stash Announcement

T-Mobile’s Q4 2014, and full year earnings call will be taking place tomorrow and Wells Fargo analyst Jennifer Fritzsche has already had her say on what is likely to be announced. T-Mo’s focus during the Uncarrier-style earnings call will be margins and “future technology deployments”, according to the market analyst.

We were already treated to preliminary earnings numbers by T-Mobile last month. The carrier reported that it had added an impressive 2.1 million net subscribers during the final quarter of the year, 1.3 million of which were branded T-Mobile postpaid subs. Fritzsche’s analysis focusses more on the financial figures and network expansion, however.

According to the Wells Fargo analyst, we’re to expect an announcement that the company pulled in revenue of $7.92 billion. Service revenue is likely to be around $5.88 billion, around 14% higher than the same quarter in 2013. Equipment revenue, on the other hand, will be up 22% on the year-ago quarter at $1.93 billion. All this means T-Mobile could announce adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) of $1.65 billion.

We’re also going to see some announcements made on spectrum: Specifically, its portfolio following the recent AWS-3 auction, 700MHz spectrum rollout and its thoughts on use of unlicensed spectrum.

As reported by Fierce Wireless:

“We will look for an update on TMUS’s spectrum portfolio following the AWS-3 auction in which it spent $1.8B, including the deployment of its 700 MHz A Block spectrum, thoughts on the broadcast incentive auction and updates on its LTE Unlicensed (LTE-U) initiatives,” she added. “We also expect TMUS to provide color on the decommissioning of MetroPCS and guidance on cost synergies in 2015.”

As previously announced, T-Mobile’s fourth quarter earnings call will take place tomorrow, February 19 at 9:00am Eastern, and ending at 10:30am Eastern. That’s 6:00am to 7:30am Pacific.

Source: Fierce Wireless

Tags: , , , ,

  • KingCobra

    Mostly interested in hearing the updates on spectrum acquisition and the progress of the ongoing 2G to LTE upgrades.

    • archerian

      Have you read the actual Sprint Q4 report? It’s not due to tablets or giveaways. Check again, you will be surprised.

      • UMA_Fan

        It was mostly due to NON sprint adds like boost, virgin, ting etc

        • archerian

          Boost is Sprint’s prepaid, Virgin and Ting are Wholesale/Affiliate. None of them had any tablet giveaway plans to effect such an increase. The 1M net adds are in majority actual phone users, albeit at lower prepaid levels. Sprint is becoming better for sure.

        • guidomus_maximus

          Its states very clearly in the Sprint Report that they had 189,000 tablet adds

        • archerian

          so when they had close to a 1M net add in Q4, then it stands to reason around 80% of the adds were phone users and not tablet users?

        • KingCobra

          Yeah I thought it was clear that I was talking about postpaid additions when said T-Mobile added 1 million. If I were talking about branded then I would’ve said over 2 million for T-Mobile. Guess you have to clarify for that guy. Being negative in postpaid shows that Sprint’s “cut your bill in half” promotion isn’t working.

        • archerian

          Glad you clarified now, to be exact, it was not “over 1M” postpaid phone adds, it was 1M. And I’m not sure why you say its negative in postpaid for Sprint – can you point out the official report that states 189,000 tablets adds were all postpaid?

        • archerian

          please share the Sprint Report that states there were 189,000 postpaid tablet adds in Q4 2014. Not disputing this number, just couldn’t see it listed in their Q4 Press Release, hence asking.

        • MarylandUSA
        • Jay J. Blanco

          Exactly.

      • guidomus_maximus

        According to sprint:
        The Sprint platform had 30,000 net postpaid additions during the quarter
        Tablet net additions were 189,000 in the quarter

        That would make them negative on phones.

        • archerian

          The Sprint Platform is not just postpaid, but prepaid and wholesale. Phone customers are phone customers where prepaid, postpaid or wholesale, the OP referred to phone customers.

      • jacky

        Sprint reps are known to shove tablet down their customers throat even the customers that dont want tablet by telling their customers tablet is free only to find out sprint charges them extra $10 a month which was never disclosed at sprint stores.

        • archerian

          is it something like T-mobile reps are knows to shove JUMP! down their customers throats?

        • Jay J. Blanco

          Jump is beneficial it includes insurance n premium lookout service

        • archerian

          it might be beneficial to some, so everyone should get it, it’s ok even without their knowledge? Oh how did we ever have handset insurance before JUMP! …

        • Jay J. Blanco

          It’s definitely not good without there knowledge because they might not be able to afford it or just opt out the service.

          I think it was 5 dollars a month before jump

        • fuego77

          No. Don’t be an idiot, you can take jump off whenever you want.. Try canceling your “free tablet” at sprint. $350 cancelation fee.

      • jacky

        Then when customers find out they havve to pay an extra $10 month on tablet they try to return it only to find out you get hit early termination fee if you return the tablet back. Lol

        • Jay J. Blanco

          Restocking fee also

      • RiskyBidThis

        Sprint lost postpaid phones and padded their numbers with unprofitable wholesale and prepaid numbers. Consider me unimpressed.

    • UMA_Fan

      Right this is a big deal. The other three would have had many quarters in the past year where they would have a net loss of subscribers if not for existing customers adding on ‘free’ tablet lines to their account boosting their add numbers

  • vinnyjr

    Don’t know how they do it by my service just keeps getting better. Data speeds are faster, over 40 down and 25 up, never drop calls and real unlimited data without speed throttling and throw in free tethering. Thank You Jpohn Legere, Thank You T-Mobile.

    • KingCobra

      They’re constantly working on the network. Something T-Mobile had quit doing back in the Humm days before Legere took over.

      • Jay J. Blanco

        Smh I hated that t-mobile stopped network upgrades. They should have pushed 3G in more markets so LTE would have a supplemental

  • archerian

    EBITDA is misleading, its the cash flow that’s more interesting and a better indicator of performance.

  • kbiel

    I would like to hear more about plans for LTE-U. This has a lot of potential for carriers like T-Mobile who are starved for spectrum. I assume it will start in the relatively underutilized 5GHz band.

    If LTE-U catches on and all the carriers begin using it AND the coexistence technology works well, it will make a good argument for reverting licensed spectrum to unlicensed and opening it up for more competition.

  • TK – Indy

    I bet nowhere in the conference tomorrow will you hear, “Oh, yeah, by the way, we borrowed $5 billion to make ends meet. Things are great, though. Trust me.”

    • archerian

      But you will hear about the EBIDTA and Adjusted EBIDTA and how its positive and in the billions.. EBIDTA is like saying “Hey, I borrowed $5 Billion in Q4, so I have $5B more cash to spend than what I had 3 months ago minus some cash I paid for interest” .. its still $5B borrowed however you spin it.

      • RiskyBidThis

        If your way of thinking was an accurate reflection of reality then refinancing a mortgage would mean you have to pay for your house twice. Fortunately for the rest of us that isn’t how the real world works and refinancing debt or issuing stock isn’t the same thing as taking on new debt.

        • archerian

          From what I said did you conclude I meant T-mobile is repaying its debt twice?

          A home mortgage and capex funding for a company are not similar in many respects. If you want to really use your analogy, its not similar to re-financing that T-mobile is doing, its like opening a new line of credit to build a pool. Refinancing debt decreases debt pressure, but as long as new debt is being added, it increases total debt liability. The interest rates might be more favorable, doesn’t mean the principle decreases when more money is borrowed via issuing notes.