T-Mobile US, Inc. Quarterly Report for Q1 Ended Mar 31, 2012

Summary

MetroPCS Communications, Inc. (TMUS) reported its first quarter 2012 results, showing a 7% increase in total revenues to $1.28 billion, driven primarily by a 10% rise in service revenues, which reached $1.16 billion. Despite revenue growth, net income saw a significant decline of 63% year-over-year, falling to $21 million from $56.4 million. This decrease was largely due to a 32% drop in income from operations and a 24% increase in interest expense, stemming from recent debt issuances to fund network expansion and spectrum acquisitions. The company added 131,654 net customers during the quarter, bringing the total subscriber base to over 9.47 million. While ARPU remained stable at $40.56, operational costs per user (CPU) increased by 15.6% to $22.87, primarily due to network upgrades and roaming expenses. The company maintained a strong liquidity position with approximately $2.2 billion in cash, cash equivalents, and short-term investments, and expects sufficient resources to fund planned capital expenditures for 2012, which are estimated between $900 million and $1 billion.

Key Highlights

• 1Total revenues increased by 7% year-over-year to $1.28 billion, driven by a 10% increase in service revenues to $1.16 billion.
• 2Net income decreased significantly by 63% to $21 million, impacted by higher operating expenses and increased interest costs.
• 3The company added 131,654 net customers in Q1 2012, growing its total subscriber base to over 9.47 million.
• 4Average Revenue Per User (ARPU) remained stable at $40.56, indicating consistent revenue generation per customer.
• 5Cost Per User (CPU) increased by 15.6% to $22.87, reflecting increased operational and network upgrade costs.
• 6The company ended the quarter with a robust liquidity position, holding $2.2 billion in cash, cash equivalents, and short-term investments.

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