updated 11:44 am EST, Tue February 25, 2014
Drop attributed to spending to increase user base
T-Mobile today reported fourth quarter and full year 2013 results, claiming that its "Un-carrier strategy is successfully delivering results." T-Mobile reported more than 1.6 million total net customer additions with 981,000 total branded net customer additions for the quarter, including branded postpaid net additions of 869,000 and branded prepaid net additions of 112,000. For the full year 2013 T-Mobile added more than 4.4 million total customers and more than 2 million branded postpaid customers.
Total revenues for the fourth quarter of 2013 increased by 39.1 percent year-over-year, principally due to the inclusion of MetroPCS results in the fourth quarter of 2013, and 10.2 percent compared to combined total revenues for the fourth quarter of 2012, primarily due to higher equipment sales revenues on record smartphone sales. Total smartphone sales, including sales to branded postpaid and prepaid customers, were a record 6.2 million units in the fourth quarter of 2013, equivalent to 91 percent of total units sold, up from 88 percent in the third quarter of 2013. This represents a penetration of 81 percent of the total branded customer base at the end of the fourth quarter of 2013, up from 78 percent at the end of the third quarter of 2013.
Service revenues for the fourth quarter of 2013 grew by 25.2 percent year-over-year also primarily due to the inclusion of MetroPCS results for the full quarter. Service revenues increased by 0.6 percent quarter-over-quarter primarily due to growth of the Company's customer base, offset in part by increased adoption of Value and Simple Choice plans, which have lower monthly service charges. Compared to pro forma combined service revenues for the fourth quarter of 2012, service revenues for the fourth quarter of 2013 declined 1.1 percent year-over-year. This represents a significant improvement compared to the third quarter of 2013 when service revenues declined by 4.6 percent year-over-year on a comparable basis.