Summary
MetroPCS Communications, Inc. (now T-Mobile US, Inc.) reported a solid third quarter ending September 30, 2010, demonstrating strong revenue growth and improved operational efficiency. Total revenues increased by 14% year-over-year, driven by a significant 16% rise in service revenues, fueled by a 1.5 million net customer addition over the preceding twelve months. This growth reflects the successful adoption of its 'Wireless for All' plans and a 27% increase in net customer additions year-to-date. The company also showed improved profitability, with income from operations increasing by 31% compared to the prior year's third quarter. This was supported by disciplined cost management, despite increased investments in network infrastructure, including the rollout of 4G LTE services. While a loss on debt extinguishment was noted, overall net income saw a modest 5% increase, indicating a resilient business model. The balance sheet remains robust, with substantial cash, cash equivalents, and short-term investments providing ample liquidity for ongoing operations and strategic investments.
Financial Highlights
51 data points| Revenue | $1.02B |
| Cost of Revenue | $569.95M |
| Gross Profit | $450.84M |
| SG&A Expenses | $147.43M |
| Operating Expenses | $812.86M |
| Operating Income | $207.93M |
| Interest Expense | $65.73M |
| Net Income | $77.29M |
| EPS (Basic) | $0.44 |
| EPS (Diluted) | $0.44 |
| Shares Outstanding (Basic) | 176.98M |
| Shares Outstanding (Diluted) | 178.21M |
Key Highlights
- 1Total revenues grew by 14% to $1.02 billion for the third quarter of 2010, compared to $895.6 million in the prior year's quarter.
- 2Service revenues increased by 16% to $942.3 million, primarily driven by a net addition of 1.5 million customers in the twelve months ending September 30, 2010.
- 3Income from operations surged by 31% to $207.9 million, indicating improved operational efficiency and cost management.
- 4Net income for the quarter was $77.3 million, a 5% increase year-over-year, despite a $15.6 million loss on extinguishment of debt.
- 5Total customers reached 7.86 million by the end of the quarter, up 24% year-over-year.
- 6Average monthly churn rate decreased to 3.8% from 5.8% in the prior year's quarter, reflecting customer plan adoption and reduced 'false churn'.
- 7The company maintained a strong liquidity position with $1.9 billion in cash, cash equivalents, and short-term investments as of September 30, 2010.