T-Mobile released its results for the third quarter of 2014, which the company is saying is the biggest growth quarter in the history of T-Mobile.
T-Mobile said that in Q3 the company was able to add 2.3 million customers to the 10 million that the company has had over the previous six quarters.
Included in these new customers are 1.4 million postpaid customers added to T-Mobile's service in the quarter, with the company now expecting to have 4.3 million to 4.7 million customers for the year. T-Mobile's expectations are up from the previous estimate of 3 million to 3.5 million.
"Despite our competitors' best efforts, the Un-carrier revolution made huge advances in the third quarter with record net new customers," said T-Mobile President and CEO John Legere.
"More proof of the resurgent strength of our brand and the massive momentum behind the Un-carrier consumer movement," Legere added.
Since T-Mobile launched itself as the "Un-carrier" in 2013, the company has made bold moves in the competitive wireless communications industry with innovations that include No Annual Service Contracts, the JUMP! device upgrade program, installment plans for equipment, free lifetime data allowances for tablet computers and free international data roaming.
Earlier in 2014, T-Mobile also began the Contract Freedom program, which has the company reimbursing the early termination fees that subscribers need to pay to carriers if they choose to switch to T-Mobile.
These innovations allowed T-Mobile to generate a third quarter revenue of $7.35 billion, which is an increase of 10 percent compared to the corresponding quarter last year. The revenue of the company is just in line with the expectations of analysts that saw T-Mobile earning a revenue of $7.4 billion for Q3.
The average billing amount for each postpaid user increased to a record $61.59, which is 4.2 percent higher compared to the third quarter last year.
Guidance for the company's adjusted EBITDA until the end of 2014 remains unchanged at $5.6 billion to $5.8 billion.
However, despite the massive growth in its number of customers and hitting expectations for revenues, T-Mobile posted a third quarter net loss of $94 million, equivalent to 12 cents per share, compared to the net loss of $36 million, equivalent to 5 cents per share, that the company posted a year earlier.
The losses come as T-Mobile continues to shut down incompatible MetroPCS networks located in Las Vegas and Boston. The costs of the shutdowns of these outdated CDMA networks that are planned for 2014 will be from $250 million to $300 million, with $97 million of the amount recognized in the recently concluded quarter.
