T-Mobile’s revenue continued to climb in the fourth quarter, topping $6.8 billion as the Bellevue-based wireless company’s “UnCarrier” strategy resulted in a net addition of more than 1.6 million customers. But its bid to shake up the economics of the wireless industry was evident on its bottom line, which showed a net loss of $20 million, or 3 cents a share.
The company had announced the subscriber gains last month, and released its full financial results this morning. The company added a net total of 4.4 million customers in 2013, as it started offering the iPhone for the first time and shifted customers away from the long-term contracts that have defined the wireless industry. T-Mobile also launched its JUMP early upgrade program, free international data roaming and free data plans for tablets.
The financial impact of those new programs is evident in the average revenue that the company is collecting per user, which has declined to $50.70/month, from $55.47/month a year ago, for customers on postpaid plans through the T-Mobile and MetroPCS brands.
These results come before the financial incentives that T-Mobile started offering last month for customers who switch from rival carriers. Those incentives total as much as $650 per customer, consisting of up to $300 for trade-ins and $350 to cover early termination fees.
T-Mobile CEO John Legere said in the company’s earnings release, “Our performance in the fourth quarter and the full year is clearly proving that we have our strategy right and that we are executing it well.
He added, “Customers are fed up with the old ways and are voting in favor of choice, innovation and doing business with a company that cares about them and is willing to earn their business. For shareholders, we transformed the Company into a fierce, growing competitor that is changing the wireless industry and creating significant value.”
T-Mobile’s earnings conference call with analysts begins at 6 a.m. Pacific time, accessible here. Here are the key financial slides from the company’s earnings presentation.