T-Mobile endures further losses in Q4 2012
T-Mobile's Q4 figures look bleak, but things could be about to improve for the beleaguered carrier
Mobile carrier T-Mobile has endured several challenges over the last 24 months, with subscriber numbers waning and the resulting revenue drop causing, at best, an unsettled response from investors. But the company’s fortunes, while currently tenuous, could be about to change, with a potentially profitable deal with Apple in the offing, and the mooted merger with MetroPCS set to go ahead as early as next month.
The company posted its fourth-quarter figures Wednesday, showing a net loss of $8 million, which, when compared to last year’s figure of $5.4 billion, seems positively rosy…if you’re a ‘glass half full’ kind of person. However, the carrier’s total revenue dropped to $4.91 billion from $5.18 billion last year. Similarly, service revenues dropped 9.6% to $4.1 billion.
T-Mobile USA’s CEO John Legere wasn’t outwardly cowed by the continued loss though. Speaking to investors, Legere stated that “T-Mobile finished 2012 on a strong note, providing a foundation for executing even bigger game-changing moves in 2013.” His confidence looks as though it could be well placed, with increasing pre-pay sales and the roll out of 4G looking like key areas for the carrier as it continues the battle with Verizon and AT&T in 2013 – not to mention the aforementioned marketing deal with the world’s number-one tech company, Apple.
The company is also looking to claw back funds by reducing device subsidies and instead offering users more competitive pricing via its Value plan model. The on-going ‘BYOD’ or Bring Your Own Device initiative also seems to have struck a chord with consumers who are increasingly looking for greater value in an intensely competitive marketplace. With Google selling cutting-edge devices like its Nexus 4 at near-loss prices, that trend could be set to proliferate.