T-Mobile Added 1.6 Million Customers in Q4, But Losses Widened

T-MobileT-Mobile’s aggressive “Un-Carrier” promotion plan resulted in a net gain of 1.6 million subscribers in the fourth quarter, but losses widened to $20 million as a result of the company’s aggressive marketing tactics. The company posted a net loss of $0.03 a share on revenue of $6.83 billion, compared to analyst expectations, on average, of a loss of $0.13 per share on $6.95 billion in revenue. T-Mobile’s stock price was down less than one percent on the news in pre-market trading. T-Mobile net subscriber additions were up from just 61,000 in the year-ago period, driven by its campaign to steal competitor customers by agreeing to pay for customers’ termination fees and not requiring them to sign a long-term contract with T-Mobile. Not surprisingly, such a tactic is not cheap — the $20 million loss in the fourth quarter of 2013 was a 150 percent increase from a loss of $8 million in the same period last year.

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