T-MOBILE Press Release
July 20, 2017
Record Service Revenues, Strong Net Income, Record Adjusted EBITDA
1.3 Million Customer Net Additions, and Record-Low Churn of 1.10%
BELLEVUE, Wash.--(BUSINESS WIRE)-- T-Mobile US, Inc. (NASDAQ: TMUS):
Customer Growth Expected to Lead the Industry:
Financial Growth also Expected to Top the Competition (all percentages year-over-year):
Strong Network and Distribution Expansion:
Continued strong outlook for 2017:
|(1)||Adjusted EBITDA is a non-GAAP financial measure and Free Cash Flow is a non-GAAP financial metric. These non-GAAP financial items should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial items to the most directly comparable GAAP financial items are provided in the financial tables on pages 7 - 10.|
T-Mobile is not able to forecast net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income including, but not limited to, income tax expense, stock-based compensation expense and interest expense. Adjusted EBITDA should not be used to predict net income as the difference between the two measures is variable.
T-Mobile US, Inc. (NASDAQ: TMUS) posted yet another quarter that showed it continues to perform at peak levels and the Un-carrier is again setting the standard in the wireless industry. This was the first full quarter where the competition went big on unlimited offers, yet T-Mobile still expects to capture all of the industry postpaid phone growth. Our network remains America's fastest and our distribution expansion will enable T-Mobile to bring real competition to every corner of the U.S.
Q2 2017 was a record-breaking quarter in a number of areas for T-Mobile. We delivered record service revenue, strong net income, record Adjusted EBITDA and record-low postpaid phone churn. We also added 1.3 million total customers, marking 17 straight quarters of adding more than 1 million every quarter. We expect to capture all of the industry's postpaid phone growth with 786,000 branded postpaid phone customers in the quarter. Customers are also staying longer, reflected in our record-low branded postpaid phone churn of 1.10% in Q2 2017. As result of these strong customer metrics, we grew service revenues to record levels, up 8% year-over-year in Q2 2017, in a quarter where all of our peers are expected to show declines. This level of consistent outperformance continues to put T-Mobile ahead of the competition, and our outlook for 2017 shows that the Un-carrier expects to continue to deliver strong results in the remainder of 2017.
"We just delivered a quarter with record service revenue, record-low churn, strong net income and record Adjusted EBITDA - all while leading the industry in postpaid phone growth," said John Legere, President and CEO of T-Mobile. "On top of that, our network just keeps getting better and faster while the Duopoly's networks seem to be choking after we forced them to go unlimited. Make no mistake about it, the Un-carrier will not stop forcing change in this industry and our Q2 results are more proof that consumers are responding!"
Customer Growth Expected to Lead the Industry
The Un-carrier formula is simple - we listen to customers, solve their pain points and give them unmatched value. Focusing on these simple priorities has completely disrupted the wireless industry and forced the competition to respond to our moves. Despite our competitors attempts to copy our moves, more customers continue to choose us over the competition and we're just getting started!
Six Months Ended
|(in thousands, except churn)||Q2 2017||Q1 2017||Q2 2016||2017||2016|
|Total net customer additions||1,333||1,142||1,881||2,475||4,102|
|Branded postpaid net customer additions||817||914||890||1,731||1,931|
|Branded postpaid phone net customer additions||786||798||646||1,584||1,523|
|Branded prepaid net customer additions||94||386||476||480||1,283|
|Total customers, end of period (1)||69,562||72,597||67,384||69,562||67,384|
|Branded postpaid phone churn||1.10||%||1.18||%||1.27||%||1.14||%||1.30||%|
|We believe current and future regulatory changes have made the Lifeline program offered by our wholesale partners uneconomical. We will continue to support our wholesale partners offering the Lifeline program, but have excluded the Lifeline customers from our reported wholesale subscriber base resulting in the removal of 4.4 million reported wholesale customers as of the beginning of Q2 2017.|