Its Raining Profits for T-Mobile in Q2 2013

T-Mobile is seeing an uptrend in its revenue which has raised up by 20% in the 2nd Quarter of 2013. Boosting the revenue to $6.3 billion is result of T-Mobile being chosen number of customers as their service provider.

With its UnCarrier remake on the mind the US carrier has picked up 1.1 million customers which was definitely a plan successfully implemented in Q2 2013 to boost the revenue. In addition to this T-Mobile has also managed to keep post-paid churn(turnover of customers on contract) to its lowest margin of 1.58%.

Plans like the Jump upgrade program, Simple choice family plans which were launched in the month of June-July 2013 which has helped the carrier to get so many customers. Although people have seen a upward trend in the prices of i-Phone, the carrier claims that the model has accounted for 29% of its handset sales and Samsung Galaxy S4 to be followed by.

Based on the overall margin T-Mobile has sold 4.3 million smart phone’s in total and increased the percentage of total phone sales from 71 % to 86%. The recently launched 4G LTE network has been in the limelight to grab the attention of customers.

T-mobile have successfully rolled out the LTE network in 116 metro areas so far at a faster pace than it promised to, which now covers 157 million people. It was helped along by the freshly acquired MetroPCS which T-Mobile claims would expand into 15 new markets. This would be responsible for further boost from US Cellular spectrum acquisition that is on the verge of completion.

All this together has resulted into 20% rise in the revenue from $4.4 billion last year to $6.3 billion this year and with a year-over-year drop in net income from $207 million to a loss of $16 million. If such energetic Marketing and addition of new programs is maintained by T-Mobile it should get back in the black soon.

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