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T-Mobile US: 1M net customers, 5.6M smartphone sales

The fourth largest U.S. cell network posted positive results for the second consecutive quarter, thanks to strong net customer additions and smartphone sales.
Written by Zack Whittaker, Contributor
Image: CNET

For the second consecutive quarter as a public company, T-Mobile is showing promise as the changes it's making, designed to shake up the mobile industry, appear to be working.

The cellular giant reported more than 1 million net new customer additions during its fiscal third quarter (statement), with 648,000 new customers landing in its post-paid base.

The company ended the quarter with 45 million customers.

In spite of the relatively slow three-month period for smartphone sales — the awkward quarter before the lucrative December holiday period — T-Mobile was still able to power through by selling 5.6 million smartphone units. iPhone sales made up 15 percent of the company's smartphone sales during the quarter.

Two reasons were pointed at for the continued rise in customers: the introduction of the iPhone in March, along with the company's still fresh Uncarrier and Jump! programs, which allow customers to cut themselves free from long-term contracts and upgrade more regularly, respectively. In addition. T-Mobile's new Simple Choice plan allows customers to travel internationally without incurring extra costs in roaming charges.

These are proving ever popular with traditional customers, who are tearing up their existing plans and jumping ship for an easier life.

But, according to the company's chief executive, John Legere, its increased growth is also attributable to its MetroPCS acquisition, which completed in May

In prepared remarks, Legere said:

"With MetroPCS we are making great progress, including the planned additional expansion of the MetroPCS brand into another 15 additional markets by November 21. Our momentum is great and we have confidence that we can continue to deliver sustainable and profitable growth."

T-Mobile now has 1.5 million MetroPCS customers on the T-Mobile network.

The firm's adjusted earnings before tax and interest (EBITDA) is up by 6.2 percent quarter-over-quarter, attributed to lower promotional expenditures compared to the fiscal second quarter.

Total revenue rose by more than 7.4 percent thanks to MetroPCS' addition to T-Mobile's finances from May, as well as record smartphone sales played a part, the firm said.

Looking ahead, T-Mobile expects to see its net additions for 2013 rise from 1 million to 1.2 million, to up to 1.8 million. For the full year, the company retains its previous guidance.

Updated at 11 a.m. ET: with details of iPhone sales.

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