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Do note that T-Mobile USA paid $225 million in "Interest expense to affiliates." The affiliate, in this case, is Deutsche Telekom, which owns T-Mobile.

If this had been structured as preferred equity rather than debt, then it would turn into dividends and move "below the line" on the income statement. T-Mobile USA would then magically be making a profit.

And of course, you're just looking at one quarter: Q2 2013. Q1 2013 was profitable. Q1 + Q2 was also profitable.

T-Mobile USA is not out of the woods yet. But they're in better shape than they were in 2011.



Interesting, I missed that. Good catch, thanks for the context!




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