US Growth Fuels T-Mobile
By Carlo Longino, Thu Aug 12 18:45:00 GMT 2004
T-Mobile International saw revenue, earnings and susbscriber growth in the second quarter, with much of it coming from the US.
The company's overall profitability grew by 10 percent over the first half of 2003 to about 3.6 billion euros, on a 12 percent increase in revenues. For the first time, the US unit generated the most revenue, though the carrier still gets the most profit in its German homeland.
The US unit, which has grown by nearly 4 million customers since this point last year, added just over a million in the second quarter, and also turned a profit for the first time. Data now represents 5% of post-pay ARPU there, and total average revenue edged up a buck from the first quarter to $55.
Each of the company's five wholly owned country units and its majority-owned Czech unit turned profits, and T-Mobile's success is driving parent Deusche Telekom's results at the moment. DT has significantly reduced its debt load over the past couple of years, and its management is reportedly eyeing acquisitions in Eastern Europe, looking to take advantage of cheaper valuations and big opportunities for growth.
T-Mobile USA is well-positioned for continued growth, particularly in data services (the company also said it sold 4 million GPRS-enabled handsets in the US in the first half). T-Mobile's experience in Europe should also give it a leg up over other carriers, as it too looks to leverage that knowledge in the less advanced US market.