T-Mobile USA, Inc. ("T-Mobile") today reported its fourth quarter 2012
results which were highlighted by a year-on-year increase in net
customers, improvement in branded contract churn, the continued
investment in more customer-focused Value plans and an accelerated
network modernization program. T-Mobile ended the fourth quarter of 2012
with 33.4 million customers, representing net additions of 61,000
customers compared to the prior quarter and 203,000 more customers than
the end of 2011. The sequential and year-on-year improvement in net
customer additions was driven primarily by the continued expansion of
the branded prepaid and wholesale segments, in particular, with growth
from the Mobile Virtual Network Operator (MVNO) component of the
wholesale segment, and a year-on-year improvement in branded contract
In the quarter, the Company reported adjusted OIBDA of $1.0 billion,
compared to $1.2 billion in the prior quarter and $1.4 billion in the
fourth quarter of 2011. As expected, the decline in fourth quarter 2012
adjusted OIBDA reflects higher advertising and promotional expenditures
related to the Company's brand re-launch, partially offset by benefits
from continued cost management programs in operational areas such as
network optimization and overall Company overhead.
Fourth Quarter 2012 Financial Summary
ARPU (branded contract)4
ARPU (branded prepaid)4
Adjusted OIBDA and OIBDA
(dollars in millions)
Property and equipment, net of accumulated depreciation of $17,744
and $15,599, respectively
Other intangible assets, net of accumulated amortization of $243
and $216, respectively
Unrealized gain on cash flow hedges and foreign currency
Unrealized gain on available-for-sale securities
Adjustments to reconcile net (loss) to net cash provided by
This press release includes non-GAAP financial measures. The non-GAAP
financial measures should be considered in addition to, but not as a
substitute for, the information provided in accordance with GAAP.
Reconciliations from the non-GAAP financial measures to the most
directly comparable GAAP financial measures are provided below following
Selected Data and the financial statements.
Adjusted OIBDA is reconciled to operating income as follows:
Adjusted operating income (excl. impairment, restructuring and
other transaction-related costs)
This news release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The
statements in this news release regarding the business outlook, expected
performance and forward-looking guidance, as well as other statements
that are not historical facts, are forward-looking statements. The words
"estimate," "project," "forecast," "intend," "expect," "believe,"
"target," "providing guidance" and similar expressions are intended to
identify forward-looking statements.
Forward-looking statements are estimates and projections reflecting
management's judgment based on currently available information and
involve a number of risks and uncertainties that could cause actual
results to differ materially from those suggested by the forward-looking
statements. With respect to these forward-looking statements, management
has made assumptions regarding, among other things, customer and network
usage, customer growth and retention, pricing, operating costs, the
timing of various events and the economic and regulatory environment.
About T-Mobile USA
Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless
operation of Deutsche Telekom AG (OTCQX: DTEGY). By the end of the
fourth quarter of 2012, approximately 132.3 million mobile customers
were served by the mobile communication segments of the Deutsche Telekom
group - 33.4 million by T-Mobile USA - all via a common technology
platform based on GSM and UMTS and additionally HSPA+ 21/HSPA+ 42.
T-Mobile USA's innovative wireless products and services help empower
people to connect to those who matter most. Multiple independent
research studies continue to rank T-Mobile USA among the highest in
numerous regions throughout the U.S. in wireless customer care and call
In order to provide comparability with the results of other US wireless
carriers, all financial amounts are in US dollars and are based on
accounting principles generally accepted in the United States ("GAAP").
T-Mobile USA results are included in the consolidated results of
Deutsche Telekom, but differ from the information contained herein as,
among other things; Deutsche Telekom reports financial results in Euros
and in accordance with International Financial Reporting Standards
For more information, please visit http://www.T-Mobile.com.
T-Mobile is a federally registered trademark of Deutsche Telekom AG. For
further information on Deutsche Telekom, please visit www.telekom.de/investor-relations.
Definitions of Terms
Since all companies do not calculate these figures in the same manner,
the information contained in this press release may not be comparable to
similarly titled measures reported by other companies.
Supplementary Operating and Financial Data - US GAAP
Net customer additions/(losses)2
[ Back To NFVZone's Homepage ]