facebook
twitter
search
search

T-Mobile posts losses but makes big gains in subscribers

T-Mobile has been aggressively attempting to attract new as well as existing subscribers away from other cellular providers, including offering to pay for transfer fees.
By Ananth Baliga   |   May 1, 2014 at 11:23 AM
| License Photo

BELLEVUE, Wash., May 1 (UPI) -- T-Mobile said it added 1.3 million new monthly subscribers, more than its rivals, for the first quarter, but reported losses despite an uptick in revenues.

Promotions and cheaper plans helped T-Mobile get more subscribers that AT&T, Verizon and Sprint. The cellular provider exceeded analysts' expectations, who estimated 998,000 new subscribers, and had more new subscribers that AT&T and Verizon put together, which was 1.16 million customers.

“A year ago I promised that we would bring change to what I called this arrogant U.S. wireless industry,” T-Mobile CEO John Legere said in the statement. “We are delivering on that promise and our results reflect the growing customer revolution that we’ve ignited.”

The company posted a quarterly loss of $151 million, or 19 cents a share, compared with a year-earlier profit of $107 million. Revenues jumped 47 percent to $6.88 billion, but were weighed down by higher operating costs, which increased 61 percent.

T-Mobile is the No.4 wireless carrier in the U.S is fast gaining ground on Sprint, which incidentally is seeking funding to acquire T-Mobile. T-Mobile has gained on Sprint and other competitors, aggressively attracting customers by doing away with carrier contracts and making a major marketing push. Still, this has come at a cost, as these efforts have hurt its margins and widened its losses.

T-Mobile has upped its annual postpaid subscribers additions to between 2.8 million and 3.3 million, from 2 million to 3 million previously.

Verizon has largely stayed out of the price war and instead concentrated on improving its services. The company saw a loss of 138,000 subscribers for the quarter, which was more than made up for gains in new tablet users.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
JetBlue first major airline to offer direct New York to Cuba flights