T-Mobile Shows Improved Income in Q1; Will MetroPCS (PCS) Deal Still Make Sense?
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Will T-Mobile's quarterly results eliminate any need for a divestiture from Deutsche Telekom? Let's find out:
Revenue fell 2.5 percent from $5.161 billion in the same period last year to $5.034 billion.
Amid the slip in revs, adjusted operating income moved from $453 million last year to $497 million, bolstered by a nearly $100 million gain in adjusted OBIDA.
In addition, branded ARPU rose $2 to $58 with branded contract data ARPU rising $2.90 to $18.80. Blended ARPU fell 2 percent to $45.
T-Mobile's total U.S. customer base is 33.4 million, down from 33.6 million at the end of first quarter 2011. Contract customers fell 6 percent to 24.548 million while prepaid rose 17 percent to 8.824 million.
Prepaid churn improved 60 basis points to 6.40 percent while branded churn improved 10 basis points.
T-Mobile highlighted some transactions for the quarter: entering into a spectrum exchange agreement with Leap Wireless (Nasdaq: LEAP), secured key AWS spectrum licenses from AT&T (NYSE: T), as well as signing agreements with Ericsson (Nasdaq: ERIC) and Nokia Siemens Networks (NYSE: NOK)(NYSE: SI) to deploy state-of-the-art LET-capable equipment at 37,000 cell sites in 2012 and 2013.
Whether this makes a stronger case for T-Mobile to merger with MetroPCS (NYSE: PCS) is yet to be seen. The acquisition would add only 9 million or so subs, but bolster T-Mobiles spectrum offerings as well, something many in the wireless industry are scrambling to do.
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Revenue fell 2.5 percent from $5.161 billion in the same period last year to $5.034 billion.
Amid the slip in revs, adjusted operating income moved from $453 million last year to $497 million, bolstered by a nearly $100 million gain in adjusted OBIDA.
In addition, branded ARPU rose $2 to $58 with branded contract data ARPU rising $2.90 to $18.80. Blended ARPU fell 2 percent to $45.
T-Mobile's total U.S. customer base is 33.4 million, down from 33.6 million at the end of first quarter 2011. Contract customers fell 6 percent to 24.548 million while prepaid rose 17 percent to 8.824 million.
Prepaid churn improved 60 basis points to 6.40 percent while branded churn improved 10 basis points.
T-Mobile highlighted some transactions for the quarter: entering into a spectrum exchange agreement with Leap Wireless (Nasdaq: LEAP), secured key AWS spectrum licenses from AT&T (NYSE: T), as well as signing agreements with Ericsson (Nasdaq: ERIC) and Nokia Siemens Networks (NYSE: NOK)(NYSE: SI) to deploy state-of-the-art LET-capable equipment at 37,000 cell sites in 2012 and 2013.
Whether this makes a stronger case for T-Mobile to merger with MetroPCS (NYSE: PCS) is yet to be seen. The acquisition would add only 9 million or so subs, but bolster T-Mobiles spectrum offerings as well, something many in the wireless industry are scrambling to do.
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