T-Mobile's net income drops 30% in Q1

T-Mobile USA reported a 30 percent drop in net income for the quarter. The company had net income of $322 million in the quarter, down from $462 million in the year-ago quarter. However, that loss was a drop in the bucket compared to parent company Deutsche Telekom, which reported a $1.5 billion net loss in the quarter, compared to a $1.23 billion net profit in the year-ago quarter. The loss was primarily attributed to a $2.4 billion write-down of its troubled U.K. business. 

Revenue: T-Mobile's total revenues, which includes services and equipment, was $5.40 billion, up from $5.19 billion in the first quarter of 2008. Service revenues jumped to $4.77 billion, up from $4.57 billion in the year-ago quarter. Data revenue, excluding messaging, jumped 30 percent to $467 million in the quarter, up from $358 million in the first quarter of 2008.

Net additions: In April, the carrier reported that it had just 415,000 net additions in the first quarter, down from 981,000 in the year-ago quarter and 621,000 in the fourth quarter of 2008. T-Mobile USA has faced increasing competition from Sprint Nextel's Boost Mobile unit and regional flat-rate carriers Leap Wireless and MetroPCS which offer an unlimited calling plans. T-Mobile began offering a $50 per month unlimited calling plan in March to customers who had been with the carrier for 22 months or more.    

Contract churn fell to 2.3 percent, down from 2.4 percent in the fourth quarter of 2008. T-Mobile USA started a campaign in February to fight churn, and Deutsche Telekom said the plan has begun to show results.  

Blended ARPU was $48 in the quarter, down from $51 in the year-ago quarter.

For more:
- see this article (sub. req.)
- see this article

Related articles:
T-Mobile net adds drop by more than half in Q1
Analysts worry T-Mobile USA is courting troublemakers
T-Mobile's $50 unlimited voice plan goes nationwide
T-Mobile introduces monthly payment plan for phones
T-Mobile USA revenue jumps despite weak subscriber growth
T-Mobile USA has 670K net adds in Q3