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Tag: Q2 2013

  • T-Mobile Adds 1.1 Million Subscribers In Q2

    T-Mobile Adds 1.1 Million Subscribers In Q2

    For the longest time, T-Mobile was the third wheel of wireless carriers as it did everything the same as AT&T and Verizon, but without the excellent 4G coverage. That all changed earlier this year as the carrier became the “un-carrier” and got rid of contracts. It has also aggressively expanded its 4G coverage. All of this has culminated in the company having one of its best quarters yet.

    T-Mobile released its second quarter earnings report today, and the carrier says that its new programs have paid off very well so far. The big news is that it has added 1.1 million new subscribers over the last quarter. It also reported 688,000 branded postpaid net additions – an improvement of more than 1.2 million year-over-year.

    “T-Mobile’s Un-carrier approach has clearly resonated with consumers. By fixing the things that drive them mad, like contracts and upgrades, and freeing them from the two-year sentences imposed on them by our competitors, they are choosing the new T-Mobile in unprecedented numbers,” said John Legere, President & CEO of T-Mobile. “We are just beginning and we will continue to apply this innovative thinking to the Un-carrier offers we create and to the internal operations of our company, which taken together are driving significant shareholder value creation.”

    One of the big events during T-Mobile’s second quarter was the launch of the iPhone 5 on its service. The carrier says that iPhone sales accounted for 29 percent of its total sales. The Samsung Galaxy S4 did even better by selling 4.3 million units, or 86 percent of its total sales, during the second quarter.

    In other news, T-Mobile said that it ended its second quarter with 44 million subscribers – an increase of more than 10 million. It only gained 1.1 million last quarter, so where did the other 8.9 million come from? If you recall, T-Mobile bought MetroPCS earlier this year, and that carrier’s subscribers have now been moved over to T-Mobile’s network.

    As for the future, T-Mobile expects its EBITDA to be in the range of $5.2 to $5.4 billion for 2013. It also expects to gain between 1 and 1.2 million branded postpaid net addition this year as well.

    T-Mobile isn’t at the level of Verizon or AT&T just yet, but the carrier is quickly becoming a major player in the industry. Its influence has already been felt after the introduction of its Jump program, and other carriers may soon follow suit with their own “un-carrier” plans. Consumers certainly want to see it happen.

  • Amazon Q2 Sales Up 22 Percent, Made $15.7 Billion

    Amazon usually posts generally favorable earnings results. Its latest quarterly earnings report continues that trend.

    Amazon announced today that it made $15.7 billion in net sales in its second quarter. The retailer says that today’s results represent a 22 percent increase in net sales over the $12.83 billion it made in the second quarter of 2012. It said that operating cash flow increased 41 percent to $4.53 billion in the twelve months leading up to June 30.

    The retailer also posted a net loss of $7 million this past quarter. Its operating income also decreased 26 percent to $79 million compared to $107 million it made in its previous second quarter. It partially blamed the losses on the “unfavorable impact from year-over-year changes in foreign exchange rates.”

    “We’re so grateful to our customers for their response to Kindle devices and our digital ecosystem. This past quarter, our top 10 selling items worldwide were all digital products – Kindles, Kindle Fire HDs, accessories and digital content,” said Jeff Bezos, founder and CEO of Amazon.com. “The Kindle service keeps getting better. The Kindle Store now offers millions of titles including more than 350,000 exclusives that you won’t find anywhere else. Prime Instant Video has surpassed 40,000 titles, including many premium exclusives like Downton Abbey and Under the Dome. And we’ve added more than a thousand books, games, educational apps, movies and TV shows to Kindle FreeTime Unlimited, bringing together in one place all the types of content kids and parents love.”

    As for its third quarter 2013 performance, Amazon provided the following predictions:

  • Net sales are expected to be between $15.45 billion and $17.15 billion, or to grow between 12% and 24% compared with third quarter 2012.
  • Operating loss is expected to be between $440 million and $65 million, compared to $28 million in third quarter 2012.
  • This guidance includes approximately $340 million for stock-based compensation and amortization of intangible assets, and it assumes, among other things, that no additional business acquisitions, investments, restructurings or legal settlements are concluded and that there are no further revisions to stock-based compensation estimates.

    • We’ll also most likely see the reveal of three new Kindle Fires in Amazon’s third quarter. The new hardware will probably not affect its third quarter all that much, but its fourth quarter will see the benefit of new Kindle Fires.

  • eBay Has A Strong Second Quarter, Pulls In $3.9 Billion In Revenue

    eBay Has A Strong Second Quarter, Pulls In $3.9 Billion In Revenue

    eBay has been doing pretty well for itself over the last few years. It’s latest financial results report doesn’t disappoint as the online auction house has reported another quarter of increased revenue.

    On Wednesday, eBay reported revenue for the second quarter increased by 14 percent to $3.9 billion. It’s net income during the last quarter was $640 million, or $0.49 per share. It also reported that total company Enabled Commerce Volume grew 21 percent last quarter to $51 billion. Its mobile commerce presence is also continuing to grow with eBay saying that downloads of its mobile apps have exceeded 179 million since their introduction in 2008.

    “We had a strong second quarter, with $51 billion of enabled commerce volume across Marketplaces, PayPal and eBay Enterprise driving double-digit revenue and earnings growth,” said eBay Inc. President and CEO John Donahoe. “Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year. But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation. We remain confident in our ability to meet our goals and drive global commerce innovation and leadership.”

    PayPal is continuing to do well with eBay reporting that its revenue has increased by 20 percent to $1.6 billion. The financial service also gained 4.7 million more subscribers during the quarter for a total of 132 million subscribers.

    eBay Marketplace reportedly had a strong quarter as well with revenue of $2 billion, or an increase of 10 percent. It also gained 3.5 million subscribers during the quarter for a total of 120 million subscribers.

    eBay Enterprise, formerly GSI Commerce, also saw continued growth with $246 million in revenue, or an 11 percent increase. It also boasts that its enterprise clients have seen a 19 percent same stores sales growth.

    Even with the strong showing, eBay share price has declined by almost 4 points. It’s currently trading at $53.41.

    If you prefer your financial information in a more visual format, eBay has condensed its earnings report into a convenient infographic:

    eBay Has A Strong Second Quarter

  • Apple Reports Record Quarter, Made $43.6 Billion In Q2

    In its second quarter earnings report, Apple says that it made $43.6 billion in revenue and $9.5 billion in profit. Apple pulled in more revenue than Q2 2012’s $39.2 billion, but it made less than last year’s $11.6 billion profit. The company also noted that 66 percent of its revenue came from international sales.

    “We are pleased to report record March quarter revenue thanks to continued strong performance of iPhone and iPad,” said Tim Cook, Apple’s CEO. “Our teams are hard at work on some amazing new hardware, software, and services and we are very excited about the products in our pipeline.”

    For hardware, Apple sold 37.4 million iPhones in the quarter. It’s a noticeable increase from the 35.1 million iPhones sold in the year-ago quarter. It also sold 19.5 million iPads, which is a pretty sizable increase from the 11.8 million iPads sold in the year-ago quarter. The company’s saw a small decrease as it sold a little under 4 million Macs compared to the year-ago quarter’s 4 million Macs.

    “Our cash generation remains very strong, with $12.5 billion in cash flow from operations during the quarter and an ending cash balance of $145 billion,” said Peter Oppenheimer, Apple’s CFO.

    Apple expects the following earnings results for Q3 2013:

  • revenue between $33.5 billion and $35.5 billion
  • gross margin between 36 percent and 37 percent
  • operating expenses between $3.85 billion and $3.95 billion
  • other income/(expense) of $300 million
  • tax rate of 26%

    • Apple will be be live streaming its Q2 2013 financial results conference call today at 2:00 p.m. PST/5:00 p.m. EST. You can listen in here.

  • Microsoft Announces Record $21.5 Billion In Revenue For Q2

    The promise day has arrived – Microsoft’s Q2 earnings report. After launching a number of high profile devices, including Windows Phone 8 and Surface, many people were wondering how Microsoft’s financials were going to look. In short, Microsoft had a pretty good quarter with only a few divisions posting losses.

    Microsoft announced today quarterly revenue of $21.46 billion in the last quarter. Operating income for the quarter was $7.77 billion, net income as $6.38 billion and diluted earnings per share was $0.76. Most of the growth seems to have come from the launch of Windows 8 which has sold 60 million licenses to date.

    “Our big, bold ambition to reimagine Windows as well as launch Surface and Windows Phone 8 has sparked growing enthusiasm with our customers and unprecedented opportunity and creativity with our partners and developers,” said Steve Ballmer, chief executive officer at Microsoft. “With new Windows devices, including Surface Pro, and the new Office on the horizon, we’ll continue to drive excitement for the Windows ecosystem and deliver our software through devices and services people love and businesses need.”

    Windows 8 was the big performer last quarter with a posted revenue of $5.88 billion, a 24 percent increase from the past year.

    “We saw strong growth in our enterprise business driven by multi-year commitments to the Microsoft platform, which positions us well for long-term growth,” said Peter Klein, chief financial officer at Microsoft. “Multi-year licensing revenue grew double-digits across Windows, Server & Tools, and the Microsoft Business Division.”

    The Server & Tools Division also saw an increase of revenue to $5.19 billion, an increase of 9 percent from last year. Most of its success can be attributed to “double-digit percentage revenue growth in SQL Server and System Center.”

    “We see strong momentum in our enterprise business. With the launch of SQL Server 2012 and Windows Server 2012, we continue to see healthy growth in our data platform and infrastructure businesses and win share from our competitors,” said Kevin Turner, chief operating officer at Microsoft. “With the coming launch of the new Office, we will provide a cloud-enabled suite of products that will deliver unparalleled productivity and flexibility.”

    The last division to post an increase over last year was Microsoft’s Online Services Division. It posted revenue of $869 million, an 11 percent increase from last year. The big performer this time was Bing with online advertising revenue rising by 15 percent.

    The only two divisions to see a decline over last year were the Business, and Entertainment and Devices Division. the former posted $5.69 billion in revenue, which is a 10 percent decrease from the past year. That being said, Microsoft points out that its productivity software, like Exchange and SharePoint, continues to see double-digit percentage growth.

    The Entertainment and Devices Division took the biggest hit as it only pulled in $3.77 billion in revenue, an 11 percent decrease from last year. Microsoft touts the Xbox 360 as the best-selling console in the United States, but it neglects to mention how well Windows Phone 8 or the Surface tablet are doing. Those details are bound to come forward during the conference call later this evening at 2:30 p.m. PST/5:30 p.m. EST.

    Microsoft Announces Record $21.5 Billion In Revenue