Summary
T-Mobile US, Inc. (formerly MetroPCS Communications, Inc.) reported strong revenue growth for the quarter ended June 30, 2010, with total revenues increasing by 18% year-over-year to $1.01 billion. This growth was primarily driven by a significant increase in service revenues, up 20% to $922.1 million, attributed to a 1.4 million net customer addition over the preceding twelve months. The company also saw a substantial improvement in profitability, with net income soaring by 205% to $79.9 million, a marked increase from $26.2 million in the prior year's quarter. This improved net income was fueled by a 71% surge in operating income, reflecting effective cost management and operational efficiencies. Operationally, the company demonstrated significant progress in customer acquisition and retention, with net customer additions increasing by 47% year-over-year. This growth, coupled with a notable decrease in churn rate to 3.3% from 5.8% in the prior year's quarter, indicates strengthening customer loyalty and market penetration. Despite a slight decrease in average revenue per user (ARPU) due to the introduction of new, more affordable service plans, the overall financial performance shows a positive trajectory, signaling a healthy expansion in its subscriber base and improved operational leverage.
Financial Highlights
51 data points| Revenue | $1.01B |
| Cost of Revenue | $543.52M |
| Gross Profit | $469.01M |
| SG&A Expenses | $158.60M |
| Operating Expenses | $814.12M |
| Operating Income | $198.41M |
| Interest Expense | $65.50M |
| Net Income | $79.92M |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 176.64M |
| Shares Outstanding (Diluted) | 177.84M |
Key Highlights
- 1Total revenues increased by 18% to $1.01 billion in Q2 2010 compared to Q2 2009.
- 2Service revenues grew by 20% year-over-year to $922.1 million, driven by subscriber growth.
- 3Net income surged by 205% to $79.9 million, up from $26.2 million in the prior year's quarter.
- 4Income from operations increased by 71% to $198.4 million, reflecting improved profitability.
- 5Net customer additions grew by 47% year-over-year to 303,009 for the quarter.
- 6Average monthly churn rate decreased significantly to 3.3% from 5.8% in the prior year's quarter.
- 7The company ended the quarter with $1.1 billion in cash, cash equivalents, and short-term investments.