It appears that T-Mobile finished last year with impressive results. The carrier revealed that for the final quarter of 2014, it registered a profit amounting to $101 million (that is equivalent to $0.12 per share). This is quite a reversal from T-Mobile's showing a year ago, in which it posted a loss of $20 million ($0.03 per share).
As for its total revenues, T-Mobile's increased to $8.15 billion, an almost 20 percent improvement. Industry analysts had predicted that the carrier would exceed earnings of $0.05 per share and $7.89 billion in revenues.
The carrier certainly did and is no doubt hoping to ride the momentum into 2015. T-Mobile has been very busy during the holidays introducing promo after promo in order to entice new customers, and at the same time, grab away some of its competition's subscribers. It might have worked -- other major wireless carriers like Verizon Wireless and AT&T have reported rising customer turnover rates for the most recently concluded quarter. Only goes to show how easy it is for rival providers to lose (and gain) their customers.
As for T-Mobile, 2014 was definitely a good year for the carrier, especially in terms of customer growth. As a matter of fact, the final quarter of 2014 was the seventh quarter in a row in which the carrier had gained over 1 million net new subscribers.
During the fourth quarter of 2014, T-Mobile managed to gain 2.1 million net new customers. 1.3 million of that number consists of postpaid subscribers, the type of customers who are more likely to stay and pay their monthly bills regularly.
Adding new customers is tricky. Carriers often have to balance between getting new subscribers under their fold versus making sure their aggressive campaigns for attracting new customers are sustainable cost-wise (i.e. it does not lead to a quarterly loss). Industry watchers have not expressed confidence that T-Mobile would be able to remain aggressive in gaining new customers without sacrificing financial sustainability. Yet T-Mobile has ended 2014 not only with more customers but also a profit to boot. The next challenge now for the carrier for the rest of 2015 is consistency in getting a positive bottom line.
Much will depend on how well T-Mobile maintains or upgrades its network coverage this year. The carrier is always aiming to equal or even better the network coverage provided by the big two, Verizon Wireless and AT&T. T-Mobile already has the fastest and most consistent 4G service in the United States, at least according to tests performed by RootMetrics. However, T-Mobile's coverage is only speedy in major metropolitan areas. The carrier might want to improve on that in 2015.
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