T-Mobile US reports 14% revenue growth, turns a profit

T-Mobile US reports 14% revenue growth, turns a profit

31 JUL 2015

T-Mobile US delivered a strong set of Q2 2015 results, including a 14 per cent jump in revenue to $8.2 billion and net income of $361 million.

The results appear to vindicate John Legere (pictured), the operator’s colourful CEO and his aggressive Uncarrier marketing campaign that goads rivals.

In typical style, he declared: “While the carriers continue to use gimmicks to confuse consumers, T-Mobile continues to listen to customers and respond with moves that blow them away.”

This outspoken approach, along with some revamped pricing, has drawn subscribers back to the operator as its vies for third spot in the US with Sprint.

T-Mobile US made 2.1 million net additions in the second quarter, including 1 million postpaid users. And  the operator increased its full-year guidance for postpaid net adds to 3.4 million – 3.9 million, from 3.0 million – 3.5 million.

Subscriber growth lifted revenue in the quarter, including service revenue up by 12 per cent to $6.1 billion.

T-Mobile US also generated net income of $361 million, down from $391 million in the year ago period although the 2014 figure was boosted by a disposal of spectrum that netted $747 million, partially offset by a decrease in income tax expense in Q2 2015. On a sequential basis, the operator was back in the black following a loss of $63 million in Q1 2015.

The operator said it will remain profitable in Q3 and Q4, and full-year 2015.

Author

Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

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