[February 28, 2013] |
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T-Mobile USA Reports Fourth Quarter 2012 Financial Results
BELLEVUE, Wash. --(Business Wire)--
T-Mobile USA, Inc. ("T-Mobile") today reported its fourth quarter 2012
results which were highlighted by a year-on-year increase in net
customers, improvement in branded contract churn, the continued
investment in more customer-focused Value plans and an accelerated
network modernization program. T-Mobile ended the fourth quarter of 2012
with 33.4 million customers, representing net additions of 61,000
customers compared to the prior quarter and 203,000 more customers than
the end of 2011. The sequential and year-on-year improvement in net
customer additions was driven primarily by the continued expansion of
the branded prepaid and wholesale segments, in particular, with growth
from the Mobile Virtual Network Operator (MVNO) component of the
wholesale segment, and a year-on-year improvement in branded contract
churn.
In the quarter, the Company reported adjusted OIBDA of $1.0 billion,
compared to $1.2 billion in the prior quarter and $1.4 billion in the
fourth quarter of 2011. As expected, the decline in fourth quarter 2012
adjusted OIBDA reflects higher advertising and promotional expenditures
related to the Company's brand re-launch, partially offset by benefits
from continued cost management programs in operational areas such as
network optimization and overall Company overhead.
Fourth Quarter 2012 Financial Summary
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Customer Results
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Quarter Ended
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(thousands)
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Dec 31, 2012
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Sept 30, 2012
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Dec 31, 2011
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Y-o-Y %?
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Customers, end of period 1,2
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Branded contract customers
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20,293
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20,809
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22,367
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(9
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%)
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Branded prepaid customers
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5,826
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5,659
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4,819
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21
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%
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Total branded customers
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26,119
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26,468
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27,186
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(4
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%)
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M2M customers
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3,090
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2,954
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2,429
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27
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%
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MVNO customers
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4,180
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3,905
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3,569
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17
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%
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Total wholesale customers
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7,270
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6,859
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5,999
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21
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%
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Total T-Mobile USA customers, end of period
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33,389
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33,327
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33,185
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1
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%
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Thereof, contract customers
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23,383
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23,763
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24,797
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(6
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%)
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Thereof, prepaid customers
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10,006
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9,564
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8,389
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19
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%
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Net customer additions/(losses)
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Branded contract customers
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(515
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(492
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(706
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27
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%
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Branded prepaid customers
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166
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365
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220
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(25
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%)
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Total branded customers
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(349
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(127
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(486
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28
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%
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M2M customers
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135
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168
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(95
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NM
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MVNO customers
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275
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119
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56
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NM
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Total wholesale customers
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410
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287
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(40
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)
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NM
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Total T-Mobile USA net customer additions/(losses)
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61
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160
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(526
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)
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NM
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Thereof, contract net customer additions/(losses)
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(380
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)
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(324
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)
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(802
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)
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53
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%
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Thereof, prepaid net customer additions/(losses)
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441
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483
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276
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60
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%
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NM - Not meaningful
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Note: Certain customer numbers may not add due to rounding.
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Branded Customers
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Branded contract net customer losses were 515,000 in the fourth
quarter of 2012, compared to 492,000 in the third quarter of 2012 and
706,000 in the fourth quarter of 2011.
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Sequentially, branded contract gross additions increased by 5% to
over 1 million. The Company's churn reduction efforts including
its network improvements and expanded value priced offerings
continue to have positive impacts on customer deactivations.
However, aggressive competitor promotions and the iPhone 5 launch
in late September drove a slight increase in branded contract
customer losses quarter-over-quarter.
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Year-on-year, the significant improvement in the fourth quarter
branded contract net customer losses was due to fewer branded
contract deactivations resulting from significant customer
retention programs in the quarter, partially offset by lower gross
customer additions. The lower gross additions were in part a
result of the Company's credit risk optimization initiatives
introduced earlier in 2012.
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Branded prepaid net customer additions were 166,000 in the fourth
quarter of 2012, down from 365,000 in the third quarter of 2012 and
down from 220,000 in the fourth quarter of 2011.
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The Monthly4G plans continue to be popular with branded prepaid
gross additions up significantly year-on-year and stable compared
to the third quarter of 2012. The overall sequential and
year-on-year decline in net customer additions were due to
increased churn related to aggressive handset pricing, unlimited
data rate plan offerings from competitors and a maturing Monthly4G
customer base.
Wholesale
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The Company's wholesale base, which includes the M2M and MVNO customer
segments, had net customer additions of 410,000 in the fourth quarter
of 2012, compared to 287,000 additions in the third quarter of 2012
and net losses of 40,000 in the fourth quarter of 2011.
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The M2M customer segment, which has significantly lower ARPU than
branded contract customers, had net customer additions of 135,000
for the quarter and totaled 3.1 million customers at the end of
the fourth quarter of 2012, an increase of 27% compared to the end
of 2011.
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The MVNO customer segment experienced net customer additions of
275,000 in the fourth quarter of 2012 and was up significantly
from the 119,000 additions in the third quarter of 2012. This
increase was due in part to the launch of new MVNO partners, such
as Spot Mobile, Solavei and UltraMobile and from higher activation
volumes from existing MVNO partners driven in part by growth in
the government-subsidized Lifeline support program.
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Churn Results
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Quarter Ended
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Dec 31, 2012
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Sept 30, 2012
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Dec 31, 2011
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Y-o-Y bps?
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Branded churn3
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3.50%
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3.10%
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3.60%
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-10 bps
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Branded contract churn3
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2.50%
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2.30%
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3.00%
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-50 bps
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Branded prepaid churn3
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7.00%
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6.20%
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6.70%
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+30 bps
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Branded customer churn was 3.5% in the fourth quarter of 2012, up 40
basis points from the third quarter of 2012 but an improvement of 10
basis points from the fourth quarter of 2011.
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Branded contract churn of 2.5% in the fourth quarter of 2012
increased 20 basis points from the prior quarter but improved 50
basis points from the fourth quarter of 2011.
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The sequential increase in branded contract churn was due to
seasonality and the launch of the iPhone 5 by competitors late
in the third quarter of 2012.
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Year-on-year, branded contract churn decreased as a result of
initiatives focused on improving the overall quality of the
Company's branded contract customer base. These initiatives
include credit risk optimization programs and efforts in
re-contracting the Company's most loyal branded contract
customers.
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Branded prepaid churn of 7.0% in the fourth quarter of 2012
increased 80 basis points from the third quarter of 2012 and 30
basis points from the fourth quarter of 2011.
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The sequential increase in branded prepaid churn was primarily
due to impacts from the iPhone 5 launch and aggressive pricing
on unlimited data plans and promotional handset pricing by
competitors.
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The year-on-year increase in branded prepaid churn was driven
primarily by higher churn from a maturing Monthly4G customer
base and a more competitive environment in this market segment.
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ARPU Results
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Quarter Ended
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Dec 31, 2012
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Sept 30, 2012
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Dec 31, 2011
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Y-o-Y %?
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($)
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ARPU (branded contract)4
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55.47
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56.59
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58.23
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(4.7
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%)
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ARPU (branded prepaid)4
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27.69
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27.35
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24.90
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11.2
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%
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ARPU (blended)4
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41.31
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42.78
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45.52
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(9.2
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%)
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Data ARPU (branded contract)5
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20.07
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19.45
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18.13
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10.7
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%
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Data ARPU (branded)5
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17.83
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17.40
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16.45
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8.4
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%
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Branded contract Average Revenue Per User (ARPU), was $55.47 in the
fourth quarter of 2012, down from $56.59 in the third quarter of 2012
and down from $58.23 in the fourth quarter of 2011.
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Sequentially and year-on-year, branded contract ARPU declined
primarily due to lower voice revenues which was due in part to a
customer shift to the Company's Value plans. Value plans result in
recording lower service revenues from lower monthly recurring
charges while recognizing higher equipment revenues at the time of
sale.
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Branded contract data ARPU was $20.07 in the fourth quarter of
2012 which increased 3.2% from the prior quarter and increased
10.7% from the fourth quarter of 2011. The overall increases were
the result of higher smartphone penetration and customer's
continued adoption of data plans including the successful
introduction of the Company's Unlimited Nationwide 4G Data plan in
the third quarter of 2012.
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At the end of the fourth quarter 2012, non-iPhone 3G/4G
smartphones used by branded contract customers accounted for 12.4
million or 61% of total branded contract customers compared to
11.8 million or 57% at the end of the third quarter of 2012 and 11
million or 49% in the fourth quarter of 2011. In addition to the
Company's branded customer smartphones, the Company's network
supported 1.8 million iPhone customers at the end of the fourth
quarter of 2012, of which, 900,000 were branded contract customers
using the "bring your own device" (BYOD) program. The total number
of iPhones at the end of the fourth quarter of 2012 includes
customers in the Company's MVNO base. When the 900,000 branded
contract customers using BYOD iPhones are included, over 66% of
the T-Mobile branded contract customers are using smartphones as
of year end.
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Branded prepaid ARPU, was $27.69 in the fourth quarter of 2012, up
1.2% from the third quarter of 2012 and up 11.2% from the fourth
quarter of 2011.
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Year-on-year, branded prepaid ARPU increased primarily due to the
continued success of the Monthly4G products which have higher ARPU
than the Company's Pay-As-You-Go prepaid products.
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Branded data ARPU in the fourth quarter of 2012 was $17.83 per branded
customer, an increase of 2.5% from the third quarter of 2012 and an
increase of 8.4% from the fourth quarter of 2011.
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3G/4G smartphone sales were 2.8 million units in the fourth
quarter of 2012, up 21.7% from 2.3 million units in the prior
quarter and a 7.7% increase from 2.6 million units sold in the
fourth quarter of 2011. Smartphone sales accounted for 79% of
units sold, and 95% of handset sales revenues in the fourth
quarter of 2012, up from 77% of units sold and 94% of handset
sales revenues in the prior quarter and 73% of units sold and 92%
of handset sales revenues in the fourth quarter of 2011. This
result reflects strong sales of the Samsung Galaxy S®
III, in particular.
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Blended ARPU was $41.31 in the fourth quarter of 2012, down from
$42.78 in the third quarter of 2012 and down from $45.52 in the fourth
quarter of 2011. These declines are primarily due to customer shifts
towards Value plans and branded prepaid programs and increases in
wholesale customers. Branded prepaid, wholesale and Value plan
customers now make up 57% of the customer base compared to 52% in the
prior quarter and 40% in the fourth quarter of 2011.
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Financial Results
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Quarter Ended
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($ millions)
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Dec 31, 2012
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Sept 30, 2012
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Dec 31, 2011
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Y-o-Y %?
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Service revenues4
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4,127
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4,261
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4,565
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(9.6
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%)
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Branded Revenues4
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3,890
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4,021
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4,316
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(9.9
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%)
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Thereof, branded contract revenues
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3,416
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3,571
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3,966
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(13.9
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%)
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Thereof, branded prepaid revenues
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474
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450
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350
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35.4
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%
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Total revenues
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4,909
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4,893
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5,179
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(5.2
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%)
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Adjusted OIBDA6
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1,048
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1,226
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1,400
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(25.1
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%)
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Adjusted OIBDA margin7
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25
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%
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29
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%
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31
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%
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-6 pp
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Capital expenditures8
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898
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717
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551
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63.0
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%
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Revenue
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Service revenues were $4.1 billion in the fourth quarter of 2012, down
3.1% from the third quarter of 2012 and down 9.6% from the fourth
quarter of 2011.
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Sequentially and year-on-year, quarterly service revenues
decreased primarily due to branded contract customer losses. The
decrease, however, was partially offset by the increased adoption
of data plans in both the contract and prepaid customer base.
Additionally, branded prepaid revenues increased compared to the
prior quarter and the fourth quarter of 2011 as a result of the
continued success of the Monthly4G plans. Adoption of the
Company's Value plans, which do not include handset equipment
subsidies, adversely impacts service revenues but results in
higher equipment revenues when compared to traditional bundled
pricing plans.
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Data service revenues, including messaging, were $1.5 billion in
the fourth quarter of 2012, consistent with both the prior quarter
and the fourth quarter of 2011. Data service revenues in the
fourth quarter of 2012, excluding messaging revenues, accounted
for over 70% of total data service revenues and increased 10.5%
year-on-year.
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Total revenues, including service, equipment sales, and other
revenues, were $4.9 billion in the fourth quarter of 2012, up slightly
from the third quarter of 2012 but declined from $5.2 billion in the
fourth quarter of 2011.
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Total revenues declined less than service revenues compared to the
fourth quarter of 2011 despite losses in branded contract
customers as equipment revenues increased year-on-year due to
stronger smartphone sales and handset program changes in
connection with the Company's Value plans.
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The Company's Value plans, which were first introduced in the
third quarter of 2011, allow customers to subscribe to wireless
services without the purchase of or upfront payment for a bundled
handset. This results in a reduction of initial subsidies and
benefits adjusted OIBDA and net income within the quarter of
purchase. Qualifying customers may separately purchase handsets at
any time, either deferring payments over 20-month installment
contracts or paying the full price at the point-of-sale. Compared
to traditional bundled price plans, Value plans have lower monthly
recurring charges which result in lower service revenues over the
service contract period, while recognizing higher equipment
revenues at the time of the sale. In the fourth quarter of 2012,
Value plan customers accounted for over 50% of the branded
contract gross additions, which is consistent with the third
quarter of 2012. Additionally, Value plans made up 30% of the
branded contract customer base at the end of the fourth quarter of
2012. This is up from 23% at the end of the third quarter of 2012.
Adjusted OIBDA and OIBDA
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The Company reported adjusted OIBDA of $1.0 billion in the fourth
quarter of 2012, compared to $1.2 billion in the third quarter of 2012
and $1.4 billion in the fourth quarter of 2011. Adjusted OIBDA margin
was 25% in the fourth quarter of 2012, down from 29% in the third
quarter of 2012 and 31% in the fourth quarter of 2011.
-
Adjusted OIBDA in the fourth quarter of 2012 excludes one-time
non-recurring expenses of $5 million, primarily related to
spectrum exchanges and transaction related activities. The prior
quarter excludes a net benefit of $140 million, primarily as a
result of a spectrum swap gain that was partially offset by costs
associated with restructuring initiatives. The fourth quarter of
2011 excludes special transaction related charges of $123 million
primarily related to the terminated AT&T transaction.
-
Sequentially, adjusted OIBDA decreased primarily as a result of
planned higher advertising expenses associated with the Company's
re-branding initiatives and lower service revenues. Year-on-year,
adjusted OIBDA decreased as a result of lower service revenues due
primarily to branded contract customer losses and increased
expenses associated with the Company's rebranding initiatives.
Operating Expenses
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Total operating expenses were $4.7 billion in the fourth quarter of
2012 and included non-recurring costs associated with spectrum
exchanges and acquisition related activities. Excluding these
non-recurring items, total operating expenses in the fourth quarter
2012 increased $220 million or 4.9% from the third quarter of 2012 and
increased $157 million or 3.4% from the fourth quarter of 2011.
Sequentially and year-on-year, the increase is primarily attributable
to higher advertising expenses partially offset by benefits from
continued cost management programs in operational areas such as
network optimization, customer roaming, improved customer collection
rates, and better management of customer acquisition and retention
costs.
-
Losses from equipment subsidies in the fourth quarter of 2012 were
$263 million (equipment revenues of $718 million, less cost of
equipment sales of $981 million), down 15.7% from the prior
quarter and down 19.1% from the fourth quarter of 2011. The
quarter-on-quarter decrease in net subsidies is primarily the
result of increased margin per unit from sales of more expensive
smartphone devices. The year-on-year decrease in net subsidies was
due primarily to handset program changes from the Company's Value
plans.
-
Equipment subsidies related to customer acquisition were $23
million in the fourth quarter of 2012, compared to $79 million
in the prior quarter and $108 million in the fourth quarter of
2011. The decreasing trend in equipment subsidies is primarily
attributable to the increase in Value plan activations and
associated unsubsidized smartphone sales.
-
Equipment subsidies related to customer retention were $240
million in the fourth quarter of 2012, compared to $233
million in the prior quarter and $218 million in the fourth
quarter of 2011. Sequentially and year-on-year, the increase
in equipment subsidies is primarily due to the increase in
handset sales in indirect retail channels and the associated
incentive payments to dealers.
-
Network expenses of $1.1 billion in the fourth quarter of 2012,
were consistent with the prior quarter and decreased 4.7% from the
fourth quarter of 2011. This year-on-year decrease was due
primarily to lower roaming expenses and reduced rates for
providing long distance service to customers partially offset by
increased lease expenses associated with network modernization.
Additionally, due to the transition to enhanced backhaul (e.g.
fiber) over the past year, the Company was able to accommodate
higher data volumes year-on-year without significant increases in
network costs.
-
Customer acquisition expenses of $963 million in the fourth
quarter of 2012 increased 17.0% from the prior quarter and 17.3%
from the fourth quarter of 2011. Compared to the prior quarter and
fourth quarter 2011, the increase was primarily due to higher
advertising expenses associated with new promotional campaigns and
the Company's rebranding initiatives.
-
General and administrative expenses of $829 million in the fourth
quarter of 2012 were slightly lower than the prior quarter and
decreased 7.9% from the fourth quarter of 2011. The year-on-year
decrease was primarily due to lower bad debt expense related to
improved customer collection rates from credit optimization
initiatives.
-
Depreciation and amortization expenses of $796 million in the
fourth quarter of 2012 decreased 3.5% from the prior quarter and
increased 4.6% from the fourth quarter of 2011. The year-on-year
increase was primarily due to assets placed into service and
accelerated depreciation related to network modernization
initiatives. Sequentially, depreciation expense was lower driven
by changes in the deployment schedule of the Company's ongoing
network modernization efforts.
Capital Expenditures
-
Cash capital expenditures (excluding spectrum licenses) were $898
million in the fourth quarter of 2012, compared to $717 million in the
third quarter of 2012 and $551 million in the fourth quarter of 2011.
-
Sequentially and year-on-year, higher cash capital expenditures
were a result of the network modernization transformation.
Other Transactions
-
During the fourth quarter of 2012, T-Mobile conveyed to Crown Castle
International Corp. ("CCI") the exclusive rights to manage and operate
approximately 7,100 T-Mobile owned wireless communication tower sites.
In exchange, T-Mobile received net proceeds of $2.5 billion of which
the Company subsequently distributed $2.4 billion as an equity
distribution to its parent, Deutsche Telekom. T-Mobile
contemporaneously entered into a lease back for part of the space at
each of the tower sites required for continued operation of T-Mobile's
network equipment installed at the sites. Under US GAAP accounting
rules pertaining to sales of real estate operations, T-Mobile was
precluded from derecognizing the tower assets and the transaction has
been accounted for as a financing. As a result, during the fourth
quarter of 2012, T-Mobile recorded on its balance sheet a long-term
financial obligation in the amounts of the cash proceeds from CCI.
|
T-MOBILE USA
|
Condensed Consolidated Balance Sheets
|
(dollars in millions)
|
(unaudited)
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
2011
|
Assets
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
394
|
|
|
|
$
|
390
|
|
Accounts receivable, net of allowances of $289 and $347, respectively
|
|
|
|
|
2,678
|
|
|
|
|
2,697
|
|
Accounts receivables from affiliates
|
|
|
|
|
682
|
|
|
|
|
1,820
|
|
Inventory
|
|
|
|
|
457
|
|
|
|
|
455
|
|
Current portion of net deferred tax assets, net
|
|
|
|
|
655
|
|
|
|
|
668
|
|
Other current assets
|
|
|
|
|
675
|
|
|
|
|
572
|
|
Total current assets
|
|
|
|
|
5,541
|
|
|
|
|
6,602
|
|
Property and equipment, net of accumulated depreciation of $17,744
and $15,599, respectively
|
|
|
|
|
12,807
|
|
|
|
|
12,703
|
|
Goodwill
|
|
|
|
|
-
|
|
|
|
|
8,134
|
|
Spectrum licenses
|
|
|
|
|
14,550
|
|
|
|
|
12,814
|
|
Other intangible assets, net of accumulated amortization of $243
and $216, respectively
|
|
|
|
|
79
|
|
|
|
|
61
|
|
Long-term investments and other assets
|
|
|
|
|
645
|
|
|
|
|
295
|
|
Total assets
|
|
|
|
$
|
33,622
|
|
|
|
$
|
40,609
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholder's equity
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
|
$
|
3,475
|
|
|
|
$
|
3,058
|
|
Current payables to affiliates
|
|
|
|
|
1,619
|
|
|
|
|
1,046
|
|
Deferred revenue
|
|
|
|
|
290
|
|
|
|
|
257
|
|
Other current liabilities
|
|
|
|
|
208
|
|
|
|
|
143
|
|
Total current liabilities
|
|
|
|
|
5,592
|
|
|
|
|
4,504
|
|
Long-term payables to affiliates
|
|
|
|
|
13,655
|
|
|
|
|
15,049
|
|
Long-term financial obligation
|
|
|
|
|
2,461
|
|
|
|
|
-
|
|
Deferred tax liabilities
|
|
|
|
|
3,618
|
|
|
|
|
3,282
|
|
Deferred rents
|
|
|
|
|
1,884
|
|
|
|
|
1,672
|
|
Other long-term liabilities
|
|
|
|
|
297
|
|
|
|
|
317
|
|
Total long-term liabilities
|
|
|
|
|
21,915
|
|
|
|
|
20,320
|
|
|
|
|
|
|
|
|
|
Stockholder's equity
|
|
|
|
|
|
|
|
Common stock and additional paid-in capital
|
|
|
|
|
29,197
|
|
|
|
|
31,600
|
|
Accumulated other comprehensive income (loss)
|
|
|
|
|
41
|
|
|
|
|
(28
|
)
|
Accumulated deficit
|
|
|
|
|
(23,123
|
)
|
|
|
|
(15,787
|
)
|
Total stockholder's equity
|
|
|
|
|
6,115
|
|
|
|
|
15,785
|
|
Total liabilities and stockholder's equity
|
|
|
|
$
|
33,622
|
|
|
|
$
|
40,609
|
|
|
|
|
|
|
|
|
|
T-MOBILE USA
|
Condensed Consolidated Statements of Operations and Comprehensive
Income (Loss)
|
(dollars in millions)
|
(unaudited)
|
|
|
|
|
|
Quarter Ended
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
September 30,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
2012
|
|
|
2011
|
|
|
2012
|
|
|
2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded contract revenues
|
|
|
|
$
|
3,416
|
|
|
|
$
|
3,571
|
|
|
|
$
|
3,966
|
|
|
|
$
|
14,521
|
|
|
|
$
|
16,230
|
|
Branded prepaid revenues
|
|
|
|
|
474
|
|
|
|
|
450
|
|
|
|
|
350
|
|
|
|
|
1,715
|
|
|
|
|
1,307
|
|
Total branded revenues
|
|
|
|
|
3,890
|
|
|
|
|
4,021
|
|
|
|
|
4,316
|
|
|
|
|
16,236
|
|
|
|
|
17,537
|
|
Wholesale revenues
|
|
|
|
|
137
|
|
|
|
|
134
|
|
|
|
|
128
|
|
|
|
|
544
|
|
|
|
|
443
|
|
Roaming and other service revenues
|
|
|
|
|
100
|
|
|
|
|
106
|
|
|
|
|
121
|
|
|
|
|
433
|
|
|
|
|
501
|
|
Total service revenues
|
|
|
|
|
4,127
|
|
|
|
|
4,261
|
|
|
|
|
4,565
|
|
|
|
|
17,213
|
|
|
|
|
18,481
|
|
Equipment sales
|
|
|
|
|
718
|
|
|
|
|
554
|
|
|
|
|
549
|
|
|
|
|
2,242
|
|
|
|
|
1,901
|
|
Other revenues
|
|
|
|
|
64
|
|
|
|
|
78
|
|
|
|
|
65
|
|
|
|
|
264
|
|
|
|
|
236
|
|
Total revenues
|
|
|
|
|
4,909
|
|
|
|
|
4,893
|
|
|
|
|
5,179
|
|
|
|
|
19,719
|
|
|
|
|
20,618
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Network costs, excluding depreciation and amortization
|
|
|
|
|
1,146
|
|
|
|
|
1,141
|
|
|
|
|
1,202
|
|
|
|
|
4,661
|
|
|
|
|
4,952
|
|
Cost of equipment sales
|
|
|
|
|
981
|
|
|
|
|
866
|
|
|
|
|
874
|
|
|
|
|
3,437
|
|
|
|
|
3,646
|
|
Customer acquisition, excluding depreciation and amortization
|
|
|
|
|
963
|
|
|
|
|
823
|
|
|
|
|
821
|
|
|
|
|
3,286
|
|
|
|
|
3,185
|
|
General and administrative, excluding depreciation and amortization
|
|
|
|
|
829
|
|
|
|
|
840
|
|
|
|
|
900
|
|
|
|
|
3,510
|
|
|
|
|
3,543
|
|
Depreciation and amortization
|
|
|
|
|
796
|
|
|
|
|
825
|
|
|
|
|
761
|
|
|
|
|
3,187
|
|
|
|
|
2,982
|
|
Impairment charges
|
|
|
|
|
-
|
|
|
|
|
8,134
|
|
|
|
|
6,420
|
|
|
|
|
8,134
|
|
|
|
|
6,420
|
|
Restructuring costs
|
|
|
|
|
(5
|
)
|
|
|
|
36
|
|
|
|
|
-
|
|
|
|
|
85
|
|
|
|
|
-
|
|
Other, net*
|
|
|
|
|
(48
|
)
|
|
|
|
(179
|
)
|
|
|
|
105
|
|
|
|
|
(184
|
)
|
|
|
|
169
|
|
Total operating expenses
|
|
|
|
|
4,662
|
|
|
|
|
12,486
|
|
|
|
|
11,083
|
|
|
|
|
26,116
|
|
|
|
|
24,897
|
|
Operating income (loss)
|
|
|
|
|
247
|
|
|
|
|
(7,593
|
)
|
|
|
|
(5,904
|
)
|
|
|
|
(6,397
|
)
|
|
|
|
(4,279
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense, net
|
|
|
|
|
(177
|
)
|
|
|
|
(130
|
)
|
|
|
|
(178
|
)
|
|
|
|
(589
|
)
|
|
|
|
(655
|
)
|
Income (loss) before income taxes
|
|
|
|
|
70
|
|
|
|
|
(7,723
|
)
|
|
|
|
(6,082
|
)
|
|
|
|
(6,986
|
)
|
|
|
|
(4,934
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax (expense) benefit
|
|
|
|
|
(78
|
)
|
|
|
|
(12
|
)
|
|
|
|
685
|
|
|
|
|
(350
|
)
|
|
|
|
216
|
|
Net (loss)
|
|
|
|
$
|
(8
|
)
|
|
|
$
|
(7,735
|
)
|
|
|
$
|
(5,397
|
)
|
|
|
$
|
(7,336
|
)
|
|
|
$
|
(4,718
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized gain on cash flow hedges and foreign currency
translation
|
|
|
|
|
49
|
|
|
|
|
23
|
|
|
|
|
94
|
|
|
|
|
68
|
|
|
|
|
2
|
|
Unrealized gain on available-for-sale securities
|
|
|
|
|
1
|
|
|
|
|
1
|
|
|
|
|
-
|
|
|
|
|
1
|
|
|
|
|
9
|
|
Total comprehensive income (loss)
|
|
|
|
$
|
42
|
|
|
|
$
|
(7,711
|
)
|
|
|
$
|
(5,303
|
)
|
|
|
$
|
(7,267
|
)
|
|
|
$
|
(4,707
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Certain prior year items have been reclassified to conform to
current year presentation.
|
|
T-MOBILE USA
|
Condensed Consolidated Statements of Cash Flows
|
(dollars in millions)
|
(unaudited)
|
|
|
|
|
Year Ended
|
|
|
|
|
December 31,
|
|
|
December 31,
|
|
|
|
|
2012
|
|
|
2011
|
Operating activities
|
|
|
|
|
|
|
|
Net (loss)
|
|
|
|
$
|
(7,336
|
)
|
|
|
$
|
(4,718
|
)
|
Adjustments to reconcile net (loss) to net cash provided by
operating activities
|
|
|
|
|
|
|
|
Impairment charges
|
|
|
|
|
8,134
|
|
|
|
|
6,420
|
|
Depreciation and amortization
|
|
|
|
|
3,187
|
|
|
|
|
2,982
|
|
Income tax expense (benefit)
|
|
|
|
|
350
|
|
|
|
|
(216
|
)
|
Amortization of debt discount and premium, net
|
|
|
|
|
(81
|
)
|
|
|
|
(84
|
)
|
Bad debt expense
|
|
|
|
|
702
|
|
|
|
|
713
|
|
Deferred rent expense
|
|
|
|
|
206
|
|
|
|
|
218
|
|
(Gains)/losses and other, net
|
|
|
|
|
(258
|
)
|
|
|
|
(43
|
)
|
Changes in operating assets and liabilities
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(700
|
)
|
|
|
|
(558
|
)
|
Inventory
|
|
|
|
|
(2
|
)
|
|
|
|
166
|
|
Other current and long-term assets
|
|
|
|
|
(316
|
)
|
|
|
|
(182
|
)
|
Accounts payable and accrued liabilities
|
|
|
|
|
(24
|
)
|
|
|
|
282
|
|
Net cash provided by operating activities
|
|
|
|
|
3,862
|
|
|
|
|
4,980
|
|
Investing activities
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(2,901
|
)
|
|
|
|
(2,729
|
)
|
Expenditures related to spectrum licenses
|
|
|
|
|
(387
|
)
|
|
|
|
(23
|
)
|
Short-term affiliate loan receivable, net
|
|
|
|
|
(651
|
)
|
|
|
|
(2,005
|
)
|
Other, net
|
|
|
|
|
24
|
|
|
|
|
58
|
|
Net cash used in investing activities
|
|
|
|
|
(3,915
|
)
|
|
|
|
(4,699
|
)
|
Financing activities
|
|
|
|
|
|
|
|
Proceeds from financial obligation
|
|
|
|
|
2,469
|
|
|
|
|
-
|
|
Repayments to financial obligation
|
|
|
|
|
(9
|
)
|
|
|
|
-
|
|
Equity distribution to affiliate
|
|
|
|
|
(2,403
|
)
|
|
|
|
-
|
|
Other, net
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
|
|
57
|
|
|
|
|
-
|
|
Change in cash and cash equivalents
|
|
|
|
|
4
|
|
|
|
|
281
|
|
Cash and cash equivalents
|
|
|
|
|
|
|
|
Beginning of period
|
|
|
|
|
390
|
|
|
|
|
109
|
|
End of period
|
|
|
|
$
|
394
|
|
|
|
$
|
390
|
|
|
|
|
|
|
|
|
|
T-MOBILE USA
|
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
|
(dollars in millions)
|
(unaudited)
|
|
This press release includes non-GAAP financial measures. The non-GAAP
financial measures should be considered in addition to, but not as a
substitute for, the information provided in accordance with GAAP.
Reconciliations from the non-GAAP financial measures to the most
directly comparable GAAP financial measures are provided below following
Selected Data and the financial statements.
Adjusted OIBDA is reconciled to operating income as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
Full Year
|
|
|
Q4
|
|
|
Q3
|
|
|
Q2
|
|
|
Q1
|
|
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2012
|
|
|
2011
|
|
|
2011
|
|
|
2011
|
|
|
2011
|
|
|
2011
|
Adjusted OIBDA
|
|
|
|
$
|
4,886
|
|
|
|
$
|
1,048
|
|
|
|
$
|
1,226
|
|
|
|
$
|
1,338
|
|
|
|
$
|
1,274
|
|
|
|
$
|
5,310
|
|
|
|
$
|
1,400
|
|
|
|
$
|
1,445
|
|
|
|
$
|
1,277
|
|
|
|
$
|
1,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
|
(3,187
|
)
|
|
|
|
(796
|
)
|
|
|
|
(825
|
)
|
|
|
|
(819
|
)
|
|
|
|
(747
|
)
|
|
|
|
(2,982
|
)
|
|
|
|
(761
|
)
|
|
|
|
(731
|
)
|
|
|
|
(755
|
)
|
|
|
|
(735
|
)
|
Adjusted operating income (excl. impairment, restructuring and
other transaction-related costs)
|
|
|
|
|
1,699
|
|
|
|
|
252
|
|
|
|
|
401
|
|
|
|
|
519
|
|
|
|
|
527
|
|
|
|
|
2,328
|
|
|
|
|
639
|
|
|
|
|
714
|
|
|
|
|
522
|
|
|
|
|
453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment charges
|
|
|
|
|
(8,134
|
)
|
|
|
|
-
|
|
|
|
|
(8,134
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
(6,420
|
)
|
|
|
|
(6,420
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Restructuring costs
|
|
|
|
|
(85
|
)
|
|
|
|
5
|
|
|
|
|
(36
|
)
|
|
|
|
(48
|
)
|
|
|
|
(6
|
)
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
|
|
|
-
|
|
Other*
|
|
|
|
|
123
|
|
|
|
|
(10
|
)
|
|
|
|
176
|
|
|
|
|
(19
|
)
|
|
|
|
(24
|
)
|
|
|
|
(187
|
)
|
|
|
|
(123
|
)
|
|
|
|
(51
|
)
|
|
|
|
(13
|
)
|
|
|
|
-
|
|
Operating (loss) income
|
|
|
|
$
|
(6,397
|
)
|
|
|
$
|
247
|
|
|
|
$
|
(7,593
|
)
|
|
|
$
|
452
|
|
|
|
$
|
497
|
|
|
|
$
|
(4,279
|
)
|
|
|
$
|
(5,904
|
)
|
|
|
$
|
663
|
|
|
|
$
|
509
|
|
|
|
$
|
453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
*Primarily represents transaction related costs, gains/losses on
intangible assets, and other material transactions. Other may not
agree in total to the Other, net classification in the Statement of
Operations due to certain routine operating activities that are not
excluded from Adjusted OIBDA.
|
|
Forward-Looking Statements
This news release includes "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The
statements in this news release regarding the business outlook, expected
performance and forward-looking guidance, as well as other statements
that are not historical facts, are forward-looking statements. The words
"estimate," "project," "forecast," "intend," "expect," "believe,"
"target," "providing guidance" and similar expressions are intended to
identify forward-looking statements.
Forward-looking statements are estimates and projections reflecting
management's judgment based on currently available information and
involve a number of risks and uncertainties that could cause actual
results to differ materially from those suggested by the forward-looking
statements. With respect to these forward-looking statements, management
has made assumptions regarding, among other things, customer and network
usage, customer growth and retention, pricing, operating costs, the
timing of various events and the economic and regulatory environment.
About T-Mobile USA
Based in Bellevue, Wash., T-Mobile USA, Inc. is the U.S. wireless
operation of Deutsche Telekom AG (OTCQX: DTEGY). By the end of the
fourth quarter of 2012, approximately 132.3 million mobile customers
were served by the mobile communication segments of the Deutsche Telekom
group - 33.4 million by T-Mobile USA - all via a common technology
platform based on GSM and UMTS and additionally HSPA+ 21/HSPA+ 42.
T-Mobile USA's innovative wireless products and services help empower
people to connect to those who matter most. Multiple independent
research studies continue to rank T-Mobile USA among the highest in
numerous regions throughout the U.S. in wireless customer care and call
quality.
In order to provide comparability with the results of other US wireless
carriers, all financial amounts are in US dollars and are based on
accounting principles generally accepted in the United States ("GAAP").
T-Mobile USA results are included in the consolidated results of
Deutsche Telekom, but differ from the information contained herein as,
among other things; Deutsche Telekom reports financial results in Euros
and in accordance with International Financial Reporting Standards
(IFRS).
For more information, please visit http://www.T-Mobile.com.
T-Mobile is a federally registered trademark of Deutsche Telekom AG. For
further information on Deutsche Telekom, please visit www.telekom.de/investor-relations.
Definitions of Terms
Since all companies do not calculate these figures in the same manner,
the information contained in this press release may not be comparable to
similarly titled measures reported by other companies.
-
A customer is defined as a SIM card with a unique T-Mobile USA mobile
identity number which generates revenue. Additionally,
machine-to-machine customers (also known as M2M) are included within
contract customers, some of which may not have monthly recurring
charges required under contract. Mobile virtual network operators
(MVNO) are classified as prepaid customers as they most closely align
with this customer segment.
-
Prior quarter amounts have been restated to conform to current period
customer reporting classifications. In Q2 2011, partner branded
customers (Wal-Mart Family Mobile) were reclassified to branded
contract customers from branded prepaid customers.
-
Churn is defined as the number of customers whose service was
discontinued, expressed as a rounded monthly percentage of the average
number of customers during the specified period. We believe that
churn, which is a measure of customer retention and loyalty, provides
relevant and useful information and is used by our management to
evaluate the operating performance of our business.
-
Average Revenue Per User (ARPU) represents the average monthly service
revenue earned from customers. ARPU is calculated by dividing service
revenues for the specified period by the average customers during the
period, and further dividing by the number of months in the period. We
believe ARPU provides management with useful information to evaluate
the revenues generated from our customer base.
Service
revenues include contract, prepaid, and roaming and other service
revenues, and do not include equipment sales and other revenues. Data
services revenues (including messaging and non-messaging revenue) are
a non-GAAP financial measure and are included in the various
components of service revenues. Handset insurance revenues are
included in contract service revenues.
Branded revenues
include contract and prepaid revenues, and do not include wholesale
(M2M and MVNO), roaming, other service revenues, equipment sales, and
other revenues.
-
Data ARPU is defined as total data revenues divided by average total
customers during the period. Total data revenues include data revenues
from contract customers, prepaid customers, Wi-Fi revenues and data
roaming revenues. Branded data revenues exclude data revenues from M2M
customers, MVNO, Wi-Fi revenues and data roaming revenues. The
relative value of data revenues from bundled unlimited voice and data
plans (including a relative value for messaging and non-messaging data
revenue) are included in total data revenues.
-
Operating Income Before Interest, Depreciation, Amortization and
Impairment (OIBDA) is a non-GAAP financial measure, which we define as
operating income before depreciation, amortization and impairment
charges. In a capital-intensive industry such as wireless
telecommunications, we believe OIBDA, as well as the associated
percentage margin calculation, to be meaningful measures of our
operating performance. OIBDA should not be construed as an alternative
to operating income or net income as determined in accordance with
GAAP, as an alternative to cash flows from operating activities as
determined in accordance with GAAP or as a measure of liquidity. We
use OIBDA as an integral part of our planning and internal financial
reporting processes, to evaluate the performance of our business by
senior management and to compare our performance with that of many of
our competitors. We believe that operating income is the financial
measure calculated and presented in accordance with GAAP that is the
most directly comparable to OIBDA. OIBDA is adjusted to exclude
transactions that are not reflective of our ongoing operating
performance and is detailed in the Reconciliation of Non-GAAP
Financials Measures to GAAP Financial Measures schedule.
-
Adjusted OIBDA margin is a non-GAAP financial measure, which we define
as adjusted OIBDA (as described in Note 6 above) divided by service
revenues.
-
Capital expenditures consist of amounts paid for construction and the
purchase of property and equipment.
-
High speed packet access plus (HSPA+ 21 and HSPA+ 42 technologies)
offers customers a 4G experience, including data speeds comparable to
other 4G network speeds currently available to mobile device users in
the United States.
-
Smartphones are defined as UMTS/HSPA/HSPA+ 21/HSPA+ 42 enabled
converged devices distributed by T-Mobile USA, which integrate voice
and data services.
|
Supplementary Operating and Financial Data - US GAAP
|
|
|
|
|
|
Full Year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Full Year
|
|
|
|
|
|
|
|
|
|
|
|
|
(thousands)
|
|
|
|
2012
|
|
|
Q4 2012
|
|
|
Q3 2012
|
|
|
Q2 2012
|
|
|
Q1 2012
|
|
|
2011
|
|
|
Q4 2011
|
|
|
Q3 2011
|
|
|
Q2 2011
|
|
|
Q1 2011
|
Customers, end of period 1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded contract customers
|
|
|
|
20,293
|
|
|
|
20,293
|
|
|
|
20,809
|
|
|
|
21,300
|
|
|
|
21,857
|
|
|
|
22,367
|
|
|
|
22,367
|
|
|
|
23,074
|
|
|
|
23,463
|
|
|
|
23,999
|
|
Branded prepaid customers
|
|
|
|
5,826
|
|
|
|
5,826
|
|
|
|
5,659
|
|
|
|
5,295
|
|
|
|
5,068
|
|
|
|
4,819
|
|
|
|
4,819
|
|
|
|
4,599
|
|
|
|
4,345
|
|
|
|
4,416
|
|
Total branded customers
|
|
|
|
26,119
|
|
|
|
26,119
|
|
|
|
26,468
|
|
|
|
26,595
|
|
|
|
26,925
|
|
|
|
27,186
|
|
|
|
27,186
|
|
|
|
27,673
|
|
|
|
27,808
|
|
|
|
28,415
|
|
M2M customers
|
|
|
|
3,090
|
|
|
|
3,090
|
|
|
|
2,954
|
|
|
|
2,786
|
|
|
|
2,691
|
|
|
|
2,429
|
|
|
|
2,429
|
|
|
|
2,525
|
|
|
|
2,321
|
|
|
|
2,065
|
|
MVNO customers
|
|
|
|
4,180
|
|
|
|
4,180
|
|
|
|
3,905
|
|
|
|
3,787
|
|
|
|
3,756
|
|
|
|
3,569
|
|
|
|
3,569
|
|
|
|
3,514
|
|
|
|
3,456
|
|
|
|
3,154
|
|
Total wholesale customers
|
|
|
|
7,270
|
|
|
|
7,270
|
|
|
|
6,859
|
|
|
|
6,573
|
|
|
|
6,448
|
|
|
|
5,999
|
|
|
|
5,999
|
|
|
|
6,038
|
|
|
|
5,777
|
|
|
|
5,220
|
|
Total T-Mobile USA customers, end of period
|
|
|
|
33,389
|
|
|
|
33,389
|
|
|
|
33,327
|
|
|
|
33,168
|
|
|
|
33,373
|
|
|
|
33,185
|
|
|
|
33,185
|
|
|
|
33,711
|
|
|
|
33,585
|
|
|
|
33,635
|
|
Thereof, contract customers
|
|
|
|
23,383
|
|
|
|
23,383
|
|
|
|
23,763
|
|
|
|
24,086
|
|
|
|
24,548
|
|
|
|
24,797
|
|
|
|
24,797
|
|
|
|
25,598
|
|
|
|
25,784
|
|
|
|
26,065
|
|
Thereof, prepaid customers
|
|
|
|
10,006
|
|
|
|
10,006
|
|
|
|
9,564
|
|
|
|
9,082
|
|
|
|
8,824
|
|
|
|
8,389
|
|
|
|
8,389
|
|
|
|
8,113
|
|
|
|
7,801
|
|
|
|
7,570
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net customer additions/(losses)2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded contract customers
|
|
|
|
(2,074
|
)
|
|
|
(515
|
)
|
|
|
(492
|
)
|
|
|
(557
|
)
|
|
|
(510
|
)
|
|
|
(2,206
|
)
|
|
|
(706
|
)
|
|
|
(389
|
)
|
|
|
(536
|
)
|
|
|
(574
|
)
|
Branded prepaid customers
|
|
|
|
1,007
|
|
|
|
166
|
|
|
|
365
|
|
|
|
227
|
|
|
|
249
|
|
|
|
321
|
|
|
|
220
|
|
|
|
254
|
|
|
|
(71
|
)
|
|
|
(82
|
)
|
Total branded customers
|
|
|
|
(1,067
|
)
|
|
|
(349
|
)
|
|
|
(127
|
)
|
|
|
(330
|
)
|
|
|
(262
|
)
|
|
|
(1,885
|
)
|
|
|
(486
|
)
|
|
|
(135
|
)
|
|
|
(608
|
)
|
|
|
(656
|
)
|
M2M customers
|
|
|
|
660
|
|
|
|
135
|
|
|
|
168
|
|
|
|
95
|
|
|
|
262
|
|
|
|
556
|
|
|
|
(95
|
)
|
|
|
204
|
|
|
|
256
|
|
|
|
192
|
|
MVNO customers
|
|
|
|
610
|
|
|
|
275
|
|
|
|
119
|
|
|
|
30
|
|
|
|
187
|
|
|
|
780
|
|
|
|
56
|
|
|
|
57
|
|
|
|
302
|
|
|
|
365
|
|
Total wholesale customers
|
|
|
|
1,270
|
|
|
|
410
|
|
|
|
287
|
|
|
|
125
|
|
|
|
449
|
|
|
|
1,336
|
|
|
|
(40
|
)
|
|
|
261
|
|
|
|
558
|
|
|
|
557
|
|
Total T-Mobile USA net customer additions/(losses)
|
|
|
|
203
|
|
|
|
61
|
|
|
|
160
|
|
|
|
(205
|
)
|
|
|
187
|
|
|
|
(549
|
)
|
|
|
(526
|
)
|
|
|
126
|
|
|
|
(50
|
)
|
|
|
(99
|
)
|
Thereof, contract net customer additions/(losses)
|
|
|
|
(1,414
|
)
|
|
|
(380
|
)
|
|
|
(324
|
)
|
|
|
(462
|
)
|
|
|
(248
|
)
|
|
|
(1,650
|
)
|
|
|
(802
|
)
|
|
|
(186
|
)
|
|
|
(281
|
)
|
|
|
(382
|
)
|
Thereof, prepaid net customer additions/(losses)
|
|
|
|
1,617
|
|
|
|
441
|
|
|
|
483
|
|
|
|
257
|
|
|
|
436
|
|
|
|
1,101
|
|
|
|
276
|
|
|
|
312
|
|
|
|
231
|
|
|
|
283
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Note: Certain customer numbers may not add due to rounding.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded contract churn3
|
|
|
|
2.40
|
%
|
|
|
2.50
|
%
|
|
|
2.30
|
%
|
|
|
2.10
|
%
|
|
|
2.50
|
%
|
|
|
2.70
|
%
|
|
|
3.00
|
%
|
|
|
2.60
|
%
|
|
|
2.60
|
%
|
|
|
2.60
|
%
|
Branded prepaid churn3
|
|
|
|
6.40
|
%
|
|
|
7.00
|
%
|
|
|
6.20
|
%
|
|
|
6.00
|
%
|
|
|
6.40
|
%
|
|
|
6.70
|
%
|
|
|
6.70
|
%
|
|
|
6.50
|
%
|
|
|
6.60
|
%
|
|
|
7.00
|
%
|
Branded churn3
|
|
|
|
3.20
|
%
|
|
|
3.50
|
%
|
|
|
3.10
|
%
|
|
|
2.90
|
%
|
|
|
3.20
|
%
|
|
|
3.30
|
%
|
|
|
3.60
|
%
|
|
|
3.20
|
%
|
|
|
3.20
|
%
|
|
|
3.30
|
%
|
Contract churn3
|
|
|
|
2.30
|
%
|
|
|
2.40
|
%
|
|
|
2.30
|
%
|
|
|
2.20
|
%
|
|
|
2.30
|
%
|
|
|
2.60
|
%
|
|
|
3.10
|
%
|
|
|
2.40
|
%
|
|
|
2.40
|
%
|
|
|
2.40
|
%
|
Blended churn3
|
|
|
|
3.40
|
%
|
|
|
3.70
|
%
|
|
|
3.40
|
%
|
|
|
3.20
|
%
|
|
|
3.30
|
%
|
|
|
3.60
|
%
|
|
|
4.00
|
%
|
|
|
3.50
|
%
|
|
|
3.30
|
%
|
|
|
3.40
|
%
|
($)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARPU (branded contract) 4
|
|
|
|
56.79
|
|
|
|
55.47
|
|
|
|
56.59
|
|
|
|
57.35
|
|
|
|
57.68
|
|
|
|
57.56
|
|
|
|
58.23
|
|
|
|
58.50
|
|
|
|
57.26
|
|
|
|
56.34
|
|
ARPU (contract) 4
|
|
|
|
50.30
|
|
|
|
48.47
|
|
|
|
49.95
|
|
|
|
50.90
|
|
|
|
51.81
|
|
|
|
52.57
|
|
|
|
52.52
|
|
|
|
53.05
|
|
|
|
52.52
|
|
|
|
52.21
|
|
ARPU (branded prepaid) 4
|
|
|
|
26.85
|
|
|
|
27.69
|
|
|
|
27.35
|
|
|
|
26.81
|
|
|
|
25.39
|
|
|
|
24.27
|
|
|
|
24.90
|
|
|
|
24.31
|
|
|
|
23.60
|
|
|
|
24.23
|
|
ARPU (prepaid) 4
|
|
|
|
20.28
|
|
|
|
20.59
|
|
|
|
20.60
|
|
|
|
20.58
|
|
|
|
19.29
|
|
|
|
18.38
|
|
|
|
19.12
|
|
|
|
18.23
|
|
|
|
17.99
|
|
|
|
18.13
|
|
ARPU (blended)4
|
|
|
|
43.12
|
|
|
|
41.31
|
|
|
|
42.78
|
|
|
|
43.88
|
|
|
|
44.52
|
|
|
|
45.86
|
|
|
|
45.52
|
|
|
|
46.22
|
|
|
|
45.86
|
|
|
|
45.82
|
|
Data ARPU (blended)5
|
|
|
|
14.52
|
|
|
|
14.72
|
|
|
|
14.53
|
|
|
|
14.45
|
|
|
|
14.38
|
|
|
|
13.71
|
|
|
|
14.16
|
|
|
|
13.98
|
|
|
|
13.56
|
|
|
|
13.13
|
|
Data ARPU (branded)5
|
|
|
|
17.34
|
|
|
|
17.83
|
|
|
|
17.40
|
|
|
|
17.21
|
|
|
|
16.94
|
|
|
|
15.54
|
|
|
|
16.45
|
|
|
|
15.97
|
|
|
|
15.25
|
|
|
|
14.55
|
|
Data ARPU (branded contract)5
|
|
|
|
19.37
|
|
|
|
20.07
|
|
|
|
19.45
|
|
|
|
19.16
|
|
|
|
18.84
|
|
|
|
17.07
|
|
|
|
18.13
|
|
|
|
17.62
|
|
|
|
16.72
|
|
|
|
15.91
|
|
($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenues4
|
|
|
|
17,213
|
|
|
|
4,127
|
|
|
|
4,261
|
|
|
|
4,381
|
|
|
|
4,444
|
|
|
|
18,481
|
|
|
|
4,565
|
|
|
|
4,666
|
|
|
|
4,620
|
|
|
|
4,630
|
|
Total revenues
|
|
|
|
19,719
|
|
|
|
4,909
|
|
|
|
4,893
|
|
|
|
4,883
|
|
|
|
5,034
|
|
|
|
20,618
|
|
|
|
5,179
|
|
|
|
5,228
|
|
|
|
5,050
|
|
|
|
5,161
|
|
Adjusted OIBDA6
|
|
|
|
4,886
|
|
|
|
1,048
|
|
|
|
1,226
|
|
|
|
1,338
|
|
|
|
1,274
|
|
|
|
5,310
|
|
|
|
1,400
|
|
|
|
1,445
|
|
|
|
1,277
|
|
|
|
1,188
|
|
Adjusted OIBDA margin7
|
|
|
|
28
|
%
|
|
|
25
|
%
|
|
|
29
|
%
|
|
|
31
|
%
|
|
|
29
|
%
|
|
|
29
|
%
|
|
|
31
|
%
|
|
|
31
|
%
|
|
|
28
|
%
|
|
|
26
|
%
|
Capital expenditures8
|
|
|
|
2,901
|
|
|
|
898
|
|
|
|
717
|
|
|
|
539
|
|
|
|
747
|
|
|
|
2,729
|
|
|
|
551
|
|
|
|
741
|
|
|
|
688
|
|
|
|
749
|
|
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