Dallas, Texas 05/05/2014 (FINANCIALSTRENDS) – T-Mobile US Inc. (NYSE:TMUS) on Thursday posted a quarterly loss of $151 million for 1Q14. However, the stock closed 8.06% above its previous closing at $31.65 backed by strong surge in its subscribers largely attributed to heavy promotions undertaken by the company. Yesterday the stock traded with significant volume of 10.34 million shares against its 30-day average volume of 4.28 million shares.
The company reported that it added 2.4 million subscribers which amounted to more number of subscribers added by Verizon Communications Inc. (NYSE:VZ) and AT&T Inc. (NYSE:T) combined. The company informed to have added 1.3 million of good credit, long term customers during 1Q14 of which 1.2 million were related to phones and around 67,000 were related to tablets and other types of mobile devices.
As a reminder to investors, T-Mobile US Inc. (NYSE:TMUS) has ended typical two year contract requirements since March 2013 when it introduced new pricing plans. So now these “postpaid” customers are regarded more stable and lucrative for wireless carriers. The company has been undertaking aggressive promotions since last year to lure away customers from larger carriers like AT&T and Verizon. To thrive in pressing competition, T-Mobile also started offering certain amount of free data per month for tablet owners as well as free texting and data abroad.
T-Mobile US Inc. (NYSE:TMUS) announced the quarterly loss at $0.19 per share for 1Q14 as compared to profit of $107 million or approximately $0.20 per share during 1Q13. Analysts, on an average, were expecting quarterly loss of around $0.10 per share. However, the company reported quarterly revenue growth of almost 47% during 1Q14 to $6.88 billion from $4.68 billion reported during 1Q13. Analysts, on an average, were expecting quarterly revenue to be around $6.92 billion. T-Mobile also reported approximately 61% increase in its operating expenses during 1Q14.