News Column

T-Mobil adds more customers

May 1, 2014

T-Mobile US Inc (NYSE: TMUS) said it added a net 2.4 million customers in the first quarter, up from 579,000 a year earlier, as the company's aggressive discounts won over customers. The number-four U.S. mobile operator's revenue rose 47% to $6.88 billion U.S. in the three months through March 31, boosted by discounts and promotions that have disrupted an industry dominated by Verizon and AT&T. The mobile service provider -- two-thirds owned by Deutsche Telekom AG -- lost $151 million U.S., or 19 cents per share, in the quarter compared with a profit of $107 million U.S., or 20 cents per share, a year earlier. Analysts on average had expected a loss of 19 cents per share on revenue of $6.92 billion U.S., according to Thomson Reuters I/B/E/S. T-Mobile added 1.3 million postpaid customers — who pay monthly bills — and 465,000 prepaid customers, who pay for calls in advance. Customer defections, or churn, for the company's postpaid service was 1.5%, down 20 basis points from the fourth quarter and down 40 basis points from a year ago. T-Mobile started to turn the corner last year, after losing customers for four years, through savvy marketing and well-publicized wireless plans. Shares in T-Mobile popped $2.56, or 8.7%, in the first hour of trading Thursday, to $31.85 U.S., within a 52-week trading range of $16.55 U.S. to $34.10 U.S.

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Source: Baystreet Tech Insider (Canada)

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