Summary
T-Mobile US, Inc. (TMUS) reported its third-quarter 2013 financial results, marked by the significant integration of MetroPCS following their business combination on April 30, 2013. The company experienced a substantial increase in total revenues, driven primarily by the inclusion of MetroPCS's operations and strong growth in branded prepaid and equipment sales, despite a decline in branded postpaid revenues due to the shift towards lower-ARPU 'Value' and 'Simple Choice' plans. Significant investments in network modernization, including 4G LTE deployment, are underway. Financially, the company saw an increase in total assets, largely due to the acquisition of MetroPCS's assets, and a significant rise in goodwill and spectrum licenses. While total liabilities also increased, the company reported a substantial increase in total stockholders' equity compared to the prior year, largely attributable to equity contributions and the accounting treatment of the MetroPCS transaction. Cash flow from operations remained strong, though investing activities showed a decrease in usage due to the MetroPCS acquisition. Management expresses confidence in liquidity for the next 12 months, supported by cash on hand and operational cash generation.
Financial Highlights
51 data points| Revenue | $6.69B |
| Cost of Revenue | $2.02B |
| Gross Profit | $4.67B |
| SG&A Expenses | $1.93B |
| Operating Expenses | $6.39B |
| Operating Income | $297.00M |
| Interest Expense | $151.00M |
| Net Income | -$36.00M |
| EPS (Basic) | $-0.05 |
| EPS (Diluted) | $-0.05 |
| Shares Outstanding (Basic) | 726.88M |
| Shares Outstanding (Diluted) | 726.88M |
Key Highlights
- 1Total revenues increased by 37% to $6.7 billion for the three months ended September 30, 2013, and by 19% to $17.6 billion for the nine months ended September 30, 2013, largely due to the MetroPCS acquisition.
- 2Branded postpaid revenues decreased 8% year-over-year for the quarter, impacted by a customer shift to lower-ARPU 'Value' and 'Simple Choice' plans, which now represent 61% of the branded postpaid base.
- 3Branded prepaid revenues saw a substantial increase of 253% for the quarter, primarily driven by the inclusion of MetroPCS's operations.
- 4The company reported a net loss of $36 million for the quarter, an improvement from a $7.7 billion loss in the prior year, and a net income of $55 million for the nine months ended September 30, 2013, compared to a loss of $7.3 billion in the prior year.
- 5Cash and cash equivalents increased significantly to $2.4 billion as of September 30, 2013, from $394 million as of December 31, 2012.
- 6Capital expenditures for the nine months were $3.1 billion, primarily for network modernization and 4G LTE deployment.
- 7Total customers increased by 35% to approximately 45 million as of September 30, 2013, largely due to the acquisition of MetroPCS's customer base.