T-Mobile US has reported total revenues of USD7.350 billion for the three months ended 30 September 2014, an increase of 9.9% from USD6.688 billion in the year-ago quarter. Service revenues for 3Q14 rose 10.6% year-on-year to USD5.684 billion, primarily due to rapid growth in the company’s customer base and increased adoption of insurance and upgrade programmes, partially offset by lower branded post-paid phone ARPU due to increased adoption of ‘Simple Choice’ plans. Adjusted EBITDA for the three months to end-September 2014 totalled USD1.346 billion, flat compared to the year-ago period and down by 7.2% quarter-on-quarter, thanks to the higher costs associated with the growth in customers, including higher selling, general and administrative expenses and higher losses on equipment sales. In Q3 2014 cash capital expenditures were USD1.1 billion, up from USD1.0 billion in the corresponding three-month period of 2013. T-Mobile’s 4G LTE network now covers 250 million people and the firm is targeting a population coverage of 300 million by year-end 2015.
T-Mobile US ended the third quarter of 2014 with 52.890 million customers, up from 50.545 million three months earlier and 45.039 million as at 30 September 2013. The firm recorded its best ever quarter of branded post-paid net customer additions (1.4 million, to give a total of 25.909 million branded post-paid subscribers at the end of 3Q14), including 1.2 million phone net additions (more than double the growth in Q2 2014) and 204,000 mobile broadband net additions. With reference to the MetroPCS combination, T-Mobile notes that approximately 78% of the smaller unit’s customers have been transitioned to the T-Mobile network to date, with around 63% of the MetroPCS spectrum re-farmed and integrated into the T-Mobile network by the end of 3Q14.