Despite recently reinventing itself as America’s “Uncarrier,” T-Mobile today reported another poor quarter earnings-wise, as the company saw its revenue drop about five percent for the second consecutive quarter.
In March, T-Mobile announced it was dropping contracts and subsidies completely and moving to a pay-by-the-month “Uncarrier” plan, making a push for pre-paid customers. While its revenue from those highly sought after pre-paid customers grew, the company’s overall revenue took a hit.
T-Mobile reported an overall revenue drop of just under five percent compared to Q4 2012 from $4.9 billion to $4.7 billion. The pre-paid revenue grew from $503 million to $474 million, but post-paid revenue dropped 4.7 percent, to $3.2 billion.
The company’s net income dropped year-over-year from $200 million in Q1 2012 to $107 million in Q1 2013. However, the net income did rise from Q4 2012, when T-Mobile took a loss.
Reports of dropping revenue are never good, but there may be some bright spots on the horizon for T-Mobile. The carrier picked up 570,000 customers in the first quarter and had just a 1.9 percent client turnover rate, its lowest since 2008. The iPhone is also finally available on T-Mobile’s network, and the carrier has sold about 500,000 of the 4, 4S and 5 models already. T-Mobile also recently made official its merger with MetroPCS.