T-Mobile sees EBITDA of $156M from its US operations (VoiceStream); adds 525,900 subscribers, surpassing 8.0M customers total

August 15, 2002

2 Min Read

BONN, Germany and BELLEVUE, Wash. -- T-Mobile International AG, the mobile communications subsidiary of Deutsche Telekom AG (NYSE: DT), today announced second quarter 2002 results of its U.S. operations, consisting of VoiceStream Wireless Corporation and Powertel, Inc., which both operate under the VoiceStream brand. The VoiceStream results reported in this press release include Powertel's results. All financial figures are in USD and are in accordance with U.S. GAAP. "VoiceStream had another very strong quarter. We continued our strong subscriber growth and exceeded our financial targets," said Kai-Uwe Ricke, CEO of T-Mobile International and Member of the Board of Management, Deutsche Telekom. "EBITDA more than doubled from the first quarter while contract subscriber additions reached an all-time high." In the second quarter ended June 30, 2002, VoiceStream increased its subscriber base by 525,900, including 73,200 through acquisitions. Total customers now exceed 8 million. Contract net additions amounted to 646,700 compared to 556,700 contract net additions in the first quarter. Including acquisitions, VoiceStream added 691,700 new contract subscribers in the second quarter. Contract churn continued to decline, dipping below 2.5% in the second quarter. The pre-pay customer base decreased by 165,800 customers as a result of new programs the company put in place to improve the quality of the prepaid customer base. The new programs resulted in lower gross subscriber additions, which combined with the higher churn rate associated with the prepaid business, resulted in a shrinking prepaid customer base for the second straight quarter. Contract subscribers now comprise 80% of the 8.0 million subscriber base compared to 74% at the end of 2001. Service revenues exceeded $1.1 billion in the second quarter representing growth of 11.1% over the first quarter. Total revenues in the second quarter amounted to approximately $1.3 billion. Contract subscriber ARPU was $52 in the second quarter compared to $51 in the first quarter. Blended ARPU, including prepaid and roaming revenues, amounted to $49, compared to $48 in the first quarter. VoiceStream reported EBITDA of $156 million in the second quarter, more than doubling EBITDA from the first quarter. EBITDA margin to service revenues was 13.6%, compared to 6.2% in the first quarter. The cost of acquiring a subscriber, referred to as CPGA in the U.S., was $311 in the second quarter and the cost of serving customers (covering all other operating expenses) was $25 per customer per month. T-Mobile U.S.

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