Adjusted EBITDA of $75 million in the first quarter- Subscriber base of U.S. operations passes 7.5 million - 556,700 net contract additions in the first quarter- Service revenues exceed $1 billion in the first quarter T-Mobile International, the mobile communications subsidiary of Deutsche Telekom (NYSE: DT), today announced detailed first quarter 2002 results of its U.S. operations, consisting of VoiceStream Wireless and Powertel, Inc., which both operate under the VoiceStream brand name. 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 achieved positive EBITDA for the first time this quarter while continuing its very strong subscriber growth," said Kai-Uwe Ricke, CEO of T-Mobile International and Member of the Board of Management, Deutsche Telekom AG. " VoiceStream achieved the strong growth in EBITDA by managing its costs carefully. VoiceStream's cost drivers and churn are heading in the right direction while ARPU remains steady."
Robert Dotson, President and Chief Operating Officer of VoiceStream, said "Our Get More subscriber offering continues to be compelling to wireless users. VoiceStream has always been a leader in the consumer market. We are now seeing growth in the business segment as well, which we attribute to our growing national scope, attractive WorldClass International roaming rates with T-Mobile and our competitive advantage of offering the only ubiquitious high-speed data network (iStream) across our entire footprint. All of this is leading to continued strong growth for VoiceStream in a highly competitve market."
In the first quarter ended March 31, 2002,VoiceStream added 508,500 net new subscribers to bring its total subscribers to approximately 7.5 million. Contract net additions amounted to 556,700 compared to 583,000 contract net additions in the fourth quarter. Contract churn decreased to under 3.0% in the first quarter from 3.3% in the fourth quarter. The pre-pay customer base shrank by 48,200 customers.
Service revenues exceeded $1.0 billion in the first quarter representing a 7% growth over the fourth quarter of 2001. Total revenues in the first quarter amounted to approximately $1.2 billion. Subscriber ARPU was $51 in the first quarter compared to $52 in the fourth quarter. Blended ARPU, including prepaid and roaming revenues, amounted to $48.
VoiceStream reported Adjusted EBITDA of $75 million in the first quarter, a margin to service revenues of 7.2%. The cost of acquiring a subscriber, referred to as CPGA in the U.S., declined to $291 in the first quarter and the cost of serving customers (covering all other operating expenses) declined to $26 per customer per month. Much of these cost efficiencies were the result of integration efforts since merging operations with Powertel.
Capital expenditures amounted to $419 million in the first quarter.
Key "Get More" highlights this year include: - "Get More" service: During the first quarter, VoiceStream expanded its service footprint to cover 162 million people as a result of natural expansion in many of its markets. With the launch of service in California later this year, VoiceStream will have a covered footprint of over 200 million people by year-end 2002.
- "Get More" wireless data: VoiceStream announced new developments in the areas of both text messaging and high speed wireless data in the first quarter. First, VoiceStream launched inter-carrier text messaging, giving customers the ability to send text messages to other wireless users, regardless of their carrier. Second, VoiceStream announced the availability of two new devices for use on its system wide high-speed GPRS data network ? the RIM Blackberrry 5810ä wireless handheld e-mail solution with Integrated Phone and the wireless PC Data Card. Both devices represent the most compelling next generation devices in the market today. Finally, in January, VoiceStream acquired the assets of MobileStar Network Corporation and now provides 802.11b wireless broadband service in 650 hot spots across the country under the name T-Mobile Wireless Broadband as a complement to the GSM/GPRS voice and data network.
- "Get More" features: In April, VoiceStream was selected by the National Communications System (NCS) to become the first wireless operator to provide Wireless Priority Service (WPS) to designated national security and emergency preparedness personnel in the greater Washignton, DC and New York City areas in times of crisis or national emergency.
Key figures for T-Mobile USA Operations
*Subscriber, prepaid, and roaming revenues. **Excluding incentive bonuses related to the DT merger.
VoiceStream and Powertel will file separate 10-Qs with the Securities and Exchange Commission (SEC) on or before May 15. The VoiceStream results reported in this press release include Powertel?s results. All figures are in U.S. dollar and are in accordance with U.S. GAAP.
This press release contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of the safe-harbor provisions of the U.S. federal securities laws. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Telekom's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Deutsche Telekom's, VoiceStream's, and Powertel's reports filed with the Securities and Exchange Commission (the "Commission"). Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. We do not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release.
About T-Mobile International: T-Mobile International, one of Deutsche Telekom AG's four strategic divisions, is one of the world?s leading international mobile communications providers. Deutsche Telekom?s subsidiaries and affiliated companies today serve more than 69 million mobile customers worldwide. T-Mobile is the first transatlantic mobile communications provider utilizing the digital GSM wireless technology standard. For more information about T-Mobile International, please visit www.t-mobile.com.
About VoiceStream: Based in Bellevue, Wash., VoiceStream and its affiliates operate the largest GSM/GPRS wireless voice and data network in the United States with licenses to provide service to over 94% of the population. VoiceStream also operates a Wi-Fi 802.11b wireless broadband (WLAN) network in more than 650 public locations including airports, conference centers and coffeehouses under the name T-Mobile Wireless Broadband. VoiceStream is a member of the T-Mobile International group, the mobile telecommunications subsidiary of Deutsche Telekom (NYSE:DT), and will begin marketing services under the T-Mobile brand by the end of 2002. VoiceStream 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 than any other wireless provider. For more information, visit the company web site at www.voicestream.com
Investor Relations Contacts:
Investor Relations Bonn