Dallas, Texas 05/09/2014 (FINANCIALSTRENDS) – In the lead-up to the release of its first quarter 2014 financial results, T-Mobile US Inc (NYSE:TMUS) enjoyed a small surge in anticipation of subscriber gains and rumors of a possible buyout by rival Sprint. The rumors have been trashed, but the subscriber gains turned out to be real enough, and so are the gains that TMUS is holding on to now.
T-Mobile US First Quarter 2014 Report
T-Mobile US reported ending the first quarter with 49.1 million net customer additions of 2.4 million for the first quarter of 2014, making it the first time ever the company has hit the 2 million mark for net growth in the number of subscribers in a single quarter. The strong growth was fueled by branded net additions of 1.8 million, including 1.3 million in branded postpaid net additions and 465,000 branded prepaid net additions.
T-Mobile’s total revenues for the first quarter of 2014 rose by 47.0% year-over-year. However, one unwanted result caused by the growth spurt was a drop in adjusted EBITDA, which dropped 12.2% sequentially to $1.1 billion, primarily due to the significant acceleration in customer growth.
Statement by T-Mobile CEO John Legere
T-Mobile President and CEO John Legere said that, “A year ago I promised that we would bring change to what I called this arrogant US wireless industry. We are delivering on that promise and our results reflect the growing customer revolution that we’ve ignited. We are now approaching 50 million customers, added 2.4 million net new customers in the first quarter alone, and posted our fourth quarter of consecutive service revenue growth, while once again adding more net new postpaid customers than the rest of the industry combined!”