Bellevue, Wash. — T-Mobile posted its fifth consecutive quarter of more than 1 million net subscriber additions, an 8 percent revenue gain, a return to operating income, and its first net income after four quarters of losses.
Second-quarter net income of $391 million, however, was driven primarily by a non-cash gain of $731 from spectrum-license transactions. Without the gain, the company would have posted a net loss of $340 million.
Operating income, however, swung to a positive $962 million compared with a first-quarter operating loss of $28 million. Operating income was up 431 percent from the year-ago quarter.
Total net customer additions hits 1.5 million, down from the first quarter’s 2.39 million net subscriber additions.
Total net adds included 579,000 T-Mobile-branded postpaid phone net adds, which was down from the previous quarter’s 1.26 million and the year-ago quarter’s 685,000. Total net adds also include 329,000 branded postpaid mobile broadband net adds and 102,000 branded prepaid net adds. M2M net adds came to 225,000, and MVNO net adds came to 235,000.
Tablets drove record mobile broadband net additions of 329,000, up five times compared with the prior quarter.
Branded postpaid phone net add were down sequentially “primarily due to a reduction in the number of customers taking the Un-carrier 4.0 (Contract Freedom) offer launched in January, the company said. Year-over-year, the decrease was due primarily to higher churn, the company said.
Branded postpaid broadband net adds of 329,000 were up from the previous quarter’s 67,000 and the year-ago 3,000. T-Mobile ascribed the sequential and year-over-year increases to positive customer response to "Operation Tablet Freedom." That plan was launched in April 2014 and provides Simple Choice voice-plan users with up to 1.2GB of free 4G data every month for a tablet through the end of 2014.