T-Mobile USA Reports Second Quarter 2006 Results.BELLEVUE Bellevue (bĕl`vy  ).1 City (1990 pop. 30,982), Sarpy co., E Nebr., a suburb of Omaha, on the Missouri River; inc. 1855. , Wash. -- T-Mobile USA (NYSE NYSE See: New York Stock Exchange :DT): --613,000 net new customers added in the quarter, of which 507,000 were new postpay customers --Stable postpay ARPU (Average Revenue Per User) A calculation often used to determine the overall value of an application. It is also used to rate particular customers, especially in the wireless space, by comparing someone's account to the overall average. -- $55, up from $54 in the first quarter of 2006 and unchanged compared to the second quarter of 2005 --$3.6 billion in service revenues in the second quarter of 2006, up 18% from the second quarter of 2005 --$1.2 billion in Operating Income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. Before Depreciation and Amortization (OIBDA OIBDA Operating Income Before Depreciation & Amortization ) in the quarter, a 12% increase over the second quarter of 2005 --T-Mobile USA ranked highest, in a tie, in the semi-annual J.D. Power and Associates Wireless Customer Care Performance Study and ranked top in VocaLabs satisfaction study on the quality of customer service --Continued investment in network quality -- over 960 new cell sites on air during the quarter In the second quarter of 2006 T-Mobile USA added 613,000 net new customers, down from 972,000 in the second quarter of 2005, and the 1.04 million net customers added in the first quarter of 2006. Postpay customers made up 83% of the second quarter customer growth, up from 70% in the first quarter of 2006, and comprised 84% of T-Mobile USA's total customer base at June June: see month. 30, 2006. "In the second quarter, we followed through on a long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. planned shift in our business aimed at investing in longer relationships with customers," said Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. Dotson, President and Chief Executive Officer, T-Mobile USA. "One of the major changes executed executed 1) adj. to have been completed. (Example: "it is an executed contract") 2) v. to have completed or fully performed. (Example: "he executed all the promises made in the contract") 3) v. was a move to 2-year service agreements. While this change resulted in lower net add growth in April during the transition, by June, we finished with one of our best months of top-line sales since the holidays. Today, we are now well positioned in our drive to reduce customer churn churn: see butter. to even lower levels while ensuring our customers continue to Get More from their T-Mobile service. Also encouraging during the quarter was the continued strong growth in our sales of converged devices A converged device combines the functions of others. Examples
A milestone or kilometre sign is one of a series of numbered markers placed along a road at regular intervals, typically at the side of the road or in a median. of 800,000 BlackBerry blackberry, name for several species of thorny plants of the genus Rubus of the family Rosaceae (rose family). See bramble. blackberry users, with an increase of 51,000 in the second quarter of 2006, equivalent to 10% of the net growth in postpay customers during the quarter." Rene RENE Recycling Network Europe RENE Rocket Engine Nozzle Ejector Obermann Obermann was a rank of the German Schutzstaffel which was used between the years 1942 and 1945. Translated as “Senior Member”, the rank of Obermann was exclusive to the Allgemeine-SS and was created as an equivalent to the Waffen-SS , CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of T-Mobile International and member of the Board of Management of Deutsche Telekom Deutsche Telekom AG (ISIN: DE0005557508, FWB: DTE, NYSE: DT, LSE: DEU, TYO: 9496 ) (abbreviated DTAG) is a telecommunications company headquartered in Bonn, Germany. It is the largest telecommunications company in Germany and in the EU. remarked: "T-Mobile USA has delivered quality growth for the business quarter after quarter, year after year. We remain very optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op about the future growth opportunities for T-Mobile in the U.S. market. We are also encouraged by the U.S. team's continued success in delivering consistently strong financial metrics metrics Managed care A popular term for standards by which the quality of a product, service, or outcome of a particular form of Pt management is evaluated. See TQM. ." T-Mobile USA reported OIBDA of $1.21 billion in the second quarter of 2006, up from $1.10 billion in the first quarter of 2006 and up from $1.08 billion in the second quarter of 2005. T-Mobile USA's net income for the second quarter of 2006 was $233 million, down from $241 million in the first quarter of 2006 and $387 million in the second quarter of 2005. The decrease in net income, despite higher operating income, is primarily due to higher income tax expense. T-Mobile USA service revenues, consisting of postpay, prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. ,
roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. and other service revenues rose to $3.59 billion in the second
quarter of 2006, up from $3.39 billion in the first quarter of 2006 and
$3.04 billion in the second quarter of 2005. The increases are primarily
due to growth in the number of postpay customers. Other revenues were
$177 million in the second quarter of 2006, down from $198 million in
the first quarter of 2006 and $269 million in the second quarter of
2005. Other revenues include Wi-Fi (WIreless-FIdelity) A logo from the Wi-Fi Alliance that certifies network devices comply with the IEEE 802.11 wireless Ethernet standards. In the early 2000s, Wi-Fi/802.11 became widely used (initially 802.11b, then 802. revenues, co-location Placing equipment owned by a customer or competitor in an organization's own facility. Telephone companies often allow co-location in order to provide the best interconnection between devices. rental income Noun 1. rental income - income received from rental propertiesincome - the financial gain (earned or unearned) accruing over a given period of time , and wholesale revenues from the usage of our network in California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). , Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , and New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of by customers of Cingular Wireless LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control ("Cingular"). The sequential One after the other in some consecutive order such as by name or number. and year on year decrease in other revenues reflects the ongoing migration of Cingular's customers to their network following the dissolution Act or process of dissolving; termination; winding up. In this sense it is frequently used in the phrase dissolution of a partnership. The dissolution of a contract is its Rescission by the parties themselves or by a court that nullifies its binding force and reinstates each of our network sharing venture in early 2005. This migration also contributed to the slight reduction in OIBDA margin compared to the second quarter of 2005. Total revenues, including service, equipment, and other revenues were $4.21 billion in the second quarter of 2006, up from $4.04 billion in the first quarter of 2006 and $3.61 billion in the second quarter of 2005. Average Revenue Per User ("ARPU" as defined in note 1 to the Selected Data, below) was $52 in the second quarter of 2006, up from $51 in the first quarter of 2006 and down from $54 in the second quarter of 2005. Postpay ARPU was $55 in the second quarter of 2006, up from $54 in the first quarter of 2006 and unchanged compared to the second quarter of 2005. The sequential increase in both blended blend v. blend·ed or blent , blend·ing, blends v.tr. 1. To combine or mix so that the constituent parts are indistinguishable from one another: and postpay ARPU related primarily to continued data revenue growth and seasonally strong roaming revenues. The fall in blended ARPU year on year is due to a higher proportion of prepaid customers in the customer base in 2006 and the decrease in prepaid ARPU. Data services revenue from postpay and prepaid customers continued to grow, reaching a total of $390 million in the second quarter of 2006. Data revenues, which are a component of service revenues, represented 10.9% of blended ARPU, or $5.65 per customer, in the second quarter of 2006, compared to 10.1%, or $5.12, in the first quarter of 2006 and 7.5%, or $4.03, in the second quarter of 2005. T-Mobile USA's data offering was further strengthened during the quarter with the launch of the Sidekick The first popular popup program for DOS PCs, introduced by Borland in 1984. Sidekick included a calculator, notepad, calendar, phone dialer and ASCII table and popularized the concept of a terminate and stay resident (TSR) utility. 3 and BlackBerry 8700g. The number of BlackBerry users rose above 800,000 by the end of the quarter, with 51,000 net new users. Continued strong growth in messaging (both SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM. (2) (Systems Management Server) Systems management software from Microsoft that runs on Windows NT Server. and MMS (Multimedia Messaging Service) An enhanced transmission service that enables graphics, video clips and sound files to be transmitted via cellphones. Developed as part of the 3GPP project, MMS phones are generally backward compatible with SMS and EMS. ) helped contribute to the increase in data ARPU. The total number of SMS and MMS messages increased to 7.9 billion in the second quarter of 2006, compared to 6.9 billion in the first quarter of 2006 and 4.1 billion in the second quarter of 2005. Postpay churn declined to 2.2% in the second quarter of 2006 compared to 2.3% in the second quarter of 2005 and rose slightly from 2.1% in the first quarter of 2006. Prepaid churn was 6.6% in the second quarter of 2006, compared to 5.8% in the first quarter of 2006 and 6.4% in the second quarter of 2005. Blended churn, including both postpay and prepaid customers, was 2.9% in the second quarter of 2006, up from 2.7% in the first quarter of 2006 and 2.8% in the second quarter of 2005. Compared to the second quarter of 2005, blended churn increased due to the higher proportion of prepaid customers in the total customer base. The average cost of acquiring a customer, Cost Per Gross Add ("CPGA (Ceramic PGA) See PGA. CPGA - Ceramic Pin Grid Array ", as defined in note 3 to the Selected Data, below) was $322 in the second quarter of 2006, up from $275 in the first quarter of 2006 and $310 in the second quarter of 2005. Compared to the first quarter of 2006 the increase in CPGA is primarily due to higher advertising costs, fewer gross adds due largely to the move to two year service agreements, and the change in mix of gross adds towards postpay. The average cash cost of serving customers, Cash Cost Per User ("CCPU CCPU Continuous Computing Corporation (stock symbol) CCPU Cash Cost Per User (Sprint) CCPU China Criminal Police University CCPU Cryptographic Central Processing Unit ", as defined in note 2 to the Selected Data, below), was $24.96 per customer per month in the second quarter of 2006, down from $25.66 in the first quarter of 2006 and $25.66 in the second quarter of 2005. The sequential decrease in CCPU compared to the first quarter of 2006 was primarily due to a fall in the average upgrade handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. loss. Capital expenditures were $593 million in the second quarter of 2006, compared with $770 million in the first quarter of 2006 and $815 million in the second quarter of 2005. As part of its ongoing commitment to network coverage and quality, T-Mobile USA added approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 960 new cell sites in the second quarter of 2006, bringing the total number of cell sites to over 34,500. T-Mobile USA's industry-leading commitment to customer care and customer satisfaction was further reinforced re·in·force also re-en·force or re·en·force tr.v. re·in·forced, re·in·forc·ing, re·in·forc·es 1. To give more force or effectiveness to; strengthen: The news reinforced her hopes. and validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. during the quarter as T-Mobile achieved the top ranking in the semi-annual J.D. Power and Associates Wireless Customer Care Performance Study for the fourth consecutive reporting period and also topped the VocaLabs satisfaction study on the quality of customer service among the largest wireless phone companies. These successes build upon other recent achievements -- earlier this year, T-Mobile USA topped the J.D. Power and Associates 2006 Wireless Regional Customer Satisfaction Index Study in all six regions and the J.D. Power and Associates Wireless Customer Care Performance Study, each for the third-straight reporting period. This press release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). . Reconciliations from the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below following Selected Data and the financial statements. T-Mobile USA, Inc. ("T-Mobile USA") is the U.S. operation of T-Mobile International AG & Co. KG ("T-Mobile International"), the mobile communications subsidiary of Deutsche Telekom AG ("Deutsche Telekom") (NYSE:DT). In order to provide comparability with the results of other U.S. wireless carriers all financial amounts are in US dollars and are based on accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ("GAAP"). T-Mobile USA results are included in the consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports financial results in accordance with International Financial Reporting Standards International Financial Reporting Standards (IFRS) are standards and interpretations adopted by the International Accounting Standards Board (IASB). Many of the standards forming part of IFRS are known by the older name of International Accounting Standards (IAS). (IFRS IFRS International Financial Reporting Standard(s) IFRS Inter Frame Relay Service IFRS Indiana Facilities Registry System ).
SELECTED DATA FOR T-MOBILE USA
(`000) Q2 06 Q1 06 YE 05 Q4 05 Q3 05 Q2 05
----------------------------------------------------------------------
Covered population 238,000 234,000 233,000 233,000 232,000 232,000
----------------------------------------------------------------------
Customers, end of
period 23,338 22,725 21,690 21,690 20,302 19,243
----------------------------------------------------------------------
Thereof postpay
customers 19,656 19,149 18,424 18,424 17,512 16,796
----------------------------------------------------------------------
Thereof prepaid
customers 3,682 3,576 3,266 3,266 2,790 2,447
----------------------------------------------------------------------
Net customer additions 613 1,035 4,376 1,388 1,059 972
----------------------------------------------------------------------
----------------------------------------------------------------------
Minutes of use/post
pay customer/month 1,041 1,013 963 985 985 960
----------------------------------------------------------------------
Postpay churn 2.2% 2.1% 2.3% 2.3% 2.4% 2.3%
----------------------------------------------------------------------
Prepaid churn 6.6% 5.8% 6.6% 6.6% 6.6% 6.4%
----------------------------------------------------------------------
Blended churn 2.9% 2.7% 2.9% 2.9% 2.9% 2.8%
----------------------------------------------------------------------
($ / month)
----------------------------------------------------------------------
ARPU (blended)(1) 52 51 53 52 53 54
----------------------------------------------------------------------
ARPU (postpay) 55 54 55 54 55 55
----------------------------------------------------------------------
ARPU (prepaid) 22 22 25 24 24 27
----------------------------------------------------------------------
Cost of serving
(CCPU)(2) 24.96 25.66 25.23 24.32 24.65 25.66
----------------------------------------------------------------------
Cost per gross add
(CPGA)(3) 322 275 297 264 271 310
----------------------------------------------------------------------
($ million)
----------------------------------------------------------------------
Total revenues 4,209 4,039 14,806 3,953 3,802 3,614
----------------------------------------------------------------------
Service revenues(1) 3,586 3,389 12,308 3,261 3,153 3,040
----------------------------------------------------------------------
OIBDA(4) 1,210 1,103 4,185 1,112 1,166 1,081
----------------------------------------------------------------------
OIBDA margin (5) 32% 31% 32% 32% 34% 33%
----------------------------------------------------------------------
Capital expenditures 593 770 5,045 807 585 815
----------------------------------------------------------------------
----------------------------------------------------------------------
Cell sites on-air 34,500 33,600 32,900 32,900 31,800 30,900
----------------------------------------------------------------------
Since all companies do not calculate these figures in the same manner, the information contained in this press release may not be comparable to similarly titled measures reported by other companies.
(1) Average Revenue Per User ("ARPU") represents the average monthly
service revenue we earn from our customers. ARPU is calculated by
dividing service revenues for the specified period by the average
customers during the period, and further dividing by the number of
months in the period. We believe ARPU provides management with
useful information to evaluate the recurring revenues generated
from our customer base.
Service revenues include postpay, prepaid, and roaming and other
service revenues, and do not include equipment sales and other
revenues. Revenues from our Wi-Fi business, co-location rental
income, and revenues for network usage by Cingular customers who
have not yet transitioned from the former joint venture networks
in California, Nevada, and New York, are therefore not included in
ARPU. The joint venture was terminated at the beginning of 2005.
(2) The average cash cost of serving customers, or Cash Cost Per User
("CCPU") is a non-GAAP financial measure and includes all network
and general and administrative costs as well as the subsidy loss
unrelated to customer acquisition. Subsidy loss unrelated to
customer acquisition includes upgrade handset costs offset by
upgrade equipment revenues and other related direct costs. This
measure is calculated as a per month average by dividing the total
costs for the specified period by the average total customers
during the period and further dividing by the number of months in
the period. We believe that CCPU, which is a measure of the costs
of serving a customer, provides relevant and useful information
and is used by our management to evaluate the operating
performance of our business.
(3) Cost Per Gross Add ("CPGA") is a non-GAAP financial measure and is
calculated by dividing the costs of acquiring a new customer,
consisting of customer acquisition costs plus the subsidy loss
related to customer acquisition for the specified period, by gross
customers added during the period. Subsidy loss related to
customer acquisition consists of costs directly incurred to
acquire new customers -- such as handset and accessory costs --
offset by related revenues. We believe that CPGA, which is a
measure of the cost of acquiring a customer, provides relevant and
useful information and is used by our management to evaluate the
operating performance of our business.
(4) OIBDA is a non-GAAP financial measure, which we define as
operating income before depreciation and amortization. In a
capital-intensive industry such as wireless telecommunications, we
believe OIBDA, as well as the associated percentage margin
calculation, to be meaningful measures of our operating
performance. OIBDA should not be construed as an alternative to
operating income or net income as determined in accordance with
GAAP, as an alternative to cash flows from operating activities as
determined in accordance with GAAP or as a measure of liquidity.
We use OIBDA as an integral part of our planning and internal
financial reporting processes, to evaluate the performance of our
senior management and to compare our performance with that of many
of our competitors. We believe that operating income is the
financial measure calculated and presented in accordance with GAAP
that is the most directly comparable to OIBDA.
(5) OIBDA margin is a non-GAAP financial measure, which we define as
OIBDA (as described in note 4 above) divided by total revenues
less equipment sales.
T-MOBILE USA
Condensed Consolidated Balance Sheets
(dollars in millions)
(unaudited)
June 30, Dec. 31,
2006 2005
-----------------
ASSETS
Current assets:
Cash and cash equivalents.....................$ 50 $ 57
Accounts receivable, net of allowance for
doubtful accounts of $157 and $151,
respectively................................. 2,124 2,116
Accounts receivable from affiliates........... 1,034 188
Inventory..................................... 544 409
Current portion of net deferred tax assets.... 743 275
Other current assets.......................... 487 437
-----------------
Total current assets...................... 4,982 3,482
-----------------
Property and equipment, net of accumulated
depreciation of $6,299 and $5,134, respectively.... 10,686 10,805
Goodwill............................................ 10,701 10,701
Spectrum licenses................................... 11,493 11,510
Other intangible assets, net of accumulated
amortization of $371 and $282, respectively........ 151 241
Investments in and advances to unconsolidated
affiliates......................................... 5 5
Other assets and investments........................ 167 248
-----------------
$ 38,185 $ 36,992
=================
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Accounts payable..............................$ 919 $ 941
Payables to affiliates........................ 77 53
Accrued liabilities........................... 2,345 1,082
Deferred revenue.............................. 366 373
Current portion of notes payable to affiliates 700 0
Construction accounts payable................. 402 724
-----------------
Total current liabilities.................. 4,809 3,173
-----------------
Long-term payables to affiliates.................... 5,748 6,457
Deferred income tax liabilities..................... 1,709 906
Other long-term liabilities......................... 677 1,697
-----------------
Total long-term liabilities......... 8,134 9,060
-----------------
Voting preferred stock held by parent company....... 5,000 5,000
Minority interest in equity of consolidated
subsidiaries....................................... 74 65
Commitments and contingencies
Shareholder's equity:
Common stock.................................. 39,452 39,452
Accumulated deficit........................... (19,284) (19,758)
-----------------
Total shareholder's equity................ 20,168 19,694
-----------------
$ 38,185 $ 36,992
=================
T-MOBILE USA
Condensed Consolidated Statements of Operations
(dollars in millions)
(unaudited)
Quarter Quarter Quarter
Ended Ended Ended
June 30, Mar. 31, June 30,
2006 2006 2005
-----------------------------
Revenues:
Postpay.................................. $ 3,218 $ 3,038 $2,725
Prepaid................................ 241 229 179
Roaming and other services............. 127 122 136
Equipment sales........................ 446 452 305
Other.................................. 177 198 269
---------------------------
Total revenues...................... 4,209 4,039 3,614
---------------------------
Operating expenses:
Network................................ 878 849 718
Cost of equipment sales................ 702 737 575
General and administrative............. 682 661 572
Customer acquisition................... 737 689 668
Depreciation and amortization.......... 651 594 585
---------------------------
Total operating expenses............ 3,650 3,530 3,118
---------------------------
Operating income......................... 559 509 496
Other income (expense):
Interest expense....................... (134) (111) (121)
Equity in net losses of unconsolidated
affiliates............................ 1 - -
Interest income and other, net......... 11 9 51
---------------------------
Total other income (expense)........... (122) (102) (70)
---------------------------
Income before income taxes............... 437 407 426
Income tax expense....................... (204) (166) (39)
---------------------------
Net income............................... $ 233 $ 241 $ 387
===========================
T-MOBILE USA
Condensed Consolidated Statements of Cash Flows
(dollars in millions)
(unaudited)
Quarter Quarter
Ended Ended
June 30, June 30,
2006 2005
-------------------
Operating activities:
Net income.....................................$ 233 $ 387
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization............ 651 585
Income tax expense....................... 204 39
Amortization of debt discount and
premium, net............................ (8) (8)
Equity in net income of unconsolidated
affiliates.............................. (1) -
Stock-based compensation................. - 1
Allowance for bad debts.................. 16 1
Deferred rent............................ 28 40
Other, net............................... 46 (49)
Changes in operating assets and
liabilities:
Accounts receivable................. 97 (124)
Inventory........................... (82) 32
Other current assets................ 3 162
Accounts payable.................... 7 159
Accrued liabilities................. (16) (112)
------------------
Net cash provided by operating activities... 1,178 1,113
------------------
Investing activities:
Purchases of property and equipment............ (593) (580)
Joint venture and network transaction with
Cingular...................................... - -
Acquisitions of spectrum licenses and wireless
properties.................................... - (235)
Proceeds on disposal of assets................. 20 16
Investments in and advances to unconsolidated
affiliates, net............................... 1 -
Short term affiliate loan receivable........... (600) -
------------------
Net cash used in investing activities....... (1,172) (799)
------------------
Financing activities:
Long-term debt repayments to affiliates........ - (365)
Change in minority interest.................... - (22)
------------------
Net cash used in financing activities....... - (387)
------------------
Change in cash and cash equivalents................ 6 (73)
Cash and cash equivalents, beginning of period..... 44 277
------------------
Cash and cash equivalents, end of period...........$ 50 $ 204
==================
T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)
OIBDA can be reconciled to our operating income as follows:
Q2 2006 Q1 2006 YE 2005 Q4 2005 Q3 2005 Q2 2005
--------------------------------------------------
OIBDA $1,210 $1,103 $4,185 $1,112 $1,166 $1,081
Depreciation and
amortization (651) (594) (2,229) (567) (558) (585)
--------------------------------------------------
Operating income $559 $509 $1,956 $545 $608 $496
==================================================
The following schedule reflects the CPGA calculation and provides a reconciliation of cost of acquiring customers used for the CPGA calculation to customer acquisition costs reported on our condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of operations:
Q2 Q1 YE Q4 Q3 Q2
2006 2006 2005 2005 2005 2005
----------------------------------------------
Customer acquisition
costs $737 $689 $2,792 $756 $657 $668
Plus: Subsidy loss
Equipment sales (446) (452) (1,529) (479) (414) (305)
Cost of equipment
sales 702 737 2,622 738 648 575
----------------------------------------------
Total subsidy loss 256 285 1,093 259 234 270
----------------------------------------------
Less: Subsidy loss
unrelated to customer
acquisition (162) (200) (629) (171) (133) (153)
----------------------------------------------
Subsidy loss related
to customer
acquisition 94 85 464 88 101 117
----------------------------------------------
Cost of acquiring
customers $831 $774 $3,256 $844 $758 $785
==============================================
CPGA ($ / new
customer added) $322 $275 $297 $264 $271 $310
T-MOBILE USA
Reconciliation of Non-GAAP Financial Measures to GAAP Financial
Measures
(dollars in millions, except for CPGA and CCPU)
(unaudited)
The following schedule reflects the CCPU calculation and provides a
reconciliation of the cost of serving customers used for the CCPU
calculation to total network costs plus general and administrative
costs reported on our condensed consolidated statements of operations:
Q2 Q1 YE Q4 Q3 Q2
2006 2006 2005 2005 2005 2005
-------------------------------------------
Network costs $878 $849 $2,883 $749 $735 $718
General and
administrative 682 661 2,324 598 596 572
-------------------------------------------
Total network and
general and
administrative costs 1,560 1,510 5,207 1,347 1,331 1,290
Plus: Subsidy loss
unrelated to customer
acquisition 162 200 629 171 133 153
-------------------------------------------
Total cost of
serving customers $1,722 $1,710 $5,836 $1,518 $1,464 $1,443
===========================================
CCPU ($ / customer
per month) $24.96 $25.66 $25.23 $24.32 $24.65 $25.66
About T-Mobile USA: Based in Bellevue, WA, T-Mobile USA, Inc. is a member of the T-Mobile International group, the mobile telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. subsidiary of Deutsche Telekom AG (NYSE:DT). T-Mobile USA's GSM/GPRS 1900 voice and data network in the United States reaches over 275 million people, including roaming and other agreements. In addition, T-Mobile USA operates the largest carrier-owned Wi-Fi (802.11b) wireless broadband High-speed wireless transmission of data. What is "high" speed is always a changing number. Wireless systems are typically slower than land-based, wireline networks. In the past, wireless broadband started at 250 Kbps, whereas land-based broadband was generally considered to start at T1 (WLAN See wireless LAN. WLAN - wireless local area network ) network in the United States, available in more than 7,800 public access locations including Starbucks coffeehouses, Kinko's copy shops, Borders Books and Music, Hyatt Hyatt is an international brand of hotels within the Global Hyatt Corporation that operates numerous properties. Hyatt is a part of the Marmon Group which is owned by Chicago's Pritzker Family. Mark S. Hoplamazian is the current President and CEO of Global Hyatt Corporation. and Accor hotels, selected airports' American Airlines American Airlines Major U.S. airline. American was created through a merger of several smaller U.S. airlines and incorporated in 1934. It continued to buy the routes of other airlines, becoming an international carrier in the 1970s; its routes include South America, the Admirals Clubs, United Red Carpet carpet or rug, thick fabric, usually woolen (but often synthetic), commonly used today as a floor covering. Carpet Types and Modern Manufactures Clubs, US Airways airways Anatomy The 'pipes'–trachea, bronchi, bronchioles–through which air passes to and from the alveoli. See Small airways. Clubs and Delta Air Lines Clubs. T-Mobile USA is committed to providing the best value in wireless service through its GET MORE promise to provide customers with more minutes, more features and more service. For more information, visit the company website at www.t-mobile.com. About T-Mobile International: T-Mobile International is one of the world's leading companies in mobile communications. As one of Deutsche Telekom`s (NYSE:DT) three strategic business units, T-Mobile concentrates on the key markets in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and the United States.By the end of the second quarter of 2006, more than 90 million mobile customers were served by companies of the Deutsche Telekom group, all over a common technology platform based on GSM (Global System for Mobile Communications) A digital cellular phone technology based on TDMA that is the predominant system in Europe, but also used worldwide. Developed in the 1980s, GSM was first deployed in seven European countries in 1992. , the world's most widely used digital wireless standard. This also makes T-Mobile the only mobile communications provider with a transatlantic service. For more information about T-Mobile International, please visit www.t-mobile.net. For further information on Deutsche Telekom, please visit www.telekom.de/investor-relations. |
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