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.    

Churn:
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.  

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

For more:
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- 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

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