T-Mobile US forecasts return to EBITDA growth in 2014

Nieuws Mobiel Verenigde Staten 25 FEB 2014
T-Mobile US forecasts return to EBITDA growth in 2014
T-Mobile US reported a strong increase in customer numbers and smartphone sales for the fourth quarter, but underlying service revenues were still lower year-on-year due to its challenger pricing strategy. The mobile operator added a net 1.6 million new customers in the three months and 4.4 million over the full year 2013, taking its base to 46.7 million at year-end. Quarterly service revenues, pro forma for its takeover of MetroPCS, were down 1.1 percent from a year ago to USD 5.17 billion, but the annual dropped improved from a 4.6 percent fall in Q3.

Postpaid retail ARPU continued lower, at USD 50.70 versus USD 52.20 in Q3 and USD 55.47 a year earlier. The operator had 69 percent of customers on its Simple Choice and Value plans at year-end, versus 30 percent in 2012, and it expects this to rise to 85-90 percent in 2014. Prepaid ARPU improved slightly, to USD 35.84 from USD 35.71 in Q3 and a year earlier, thanks to the inclusion of data bundles in prepaid offers.

T-Mobile said it expects retail postpaid customer growth to continue this year, targeting 2.0-3.0 million net additions versus 2.0 million last year. Net additions of 869,000 in Q4 were driven by demand for its smartphone offers. Including prepaid customers, the operator sold a total 6.2 million smartphones in Q4, and 81 percent of the retail customer base now has smartphones. The strong handset sales helped total pro forma revenues for Q4 increase 10.2 percent year-on-year.

Adjusted EBITDA declined to USD 1.24 billion in Q4 from USD 1.36 billion a year earlier, hurt by the higher smartphone sales and promotions for new offers. Over the full year, the company met its guidance for adjusted EBITDA at USD 5.3 billion, and T-Mobile said it expects this to improve to USD 5.7-6.0 billion in 2014, helped by higher-than-expected synergies from the MetroPCS integration. Operating synergies are now estimated at USD 105 million, versus a maximum USD 30 million previously, and capex synergies should reach USD 657 million, versus an earlier target of USD 70-135 million.

T-Mobile has decided to bring forward the shutdown of three MetroPCS markets to this year from 2015 and sees potential for further acceleration of other markets to the T-Mobile brand. Over 25 percent of the MetroPCS spectrum had been integrated in the T-Mobile network by the end of 2013. Capital expenditure is expected to increase slightly to USD 4.3-4.6 billion this year from USD 4.2 billion in 2013.

Categories:

Mobiel

Companies:

MetroPCS,  T-Mobile US

Countries:

Verenigde Staten

Tags:

Voice services, Data services, Financial figures

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