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T-Mobile Announces Q1 Results

T-Mobile Media Release | April 25, 2024

Industry-Leading Customer Growth Fueled by Best Network and Best Value Combination (1)

  • Postpaid net account additions of 218 thousand, best in industry
  • Postpaid net customer additions of 1.2 million, best in industry
  • Postpaid phone net customer additions of 532 thousand, best in industry and higher share of industry net adds year-over-year
  • Postpaid phone churn of 0.86%, matches record low for Q1
  • High Speed Internet net customer additions of 405 thousand, best in industry, passing 5 million customers

Translating Industry-Leading Customer Growth Into Industry-Leading Financial Performance

  • Service revenues of $16.1 billion grew 4% year-over-year, best in industry growth
  • Postpaid service revenues of $12.6 billion grew 6% year-over-year, best in industry growth
  • Net income of $2.4 billion grew 22% year-over-year, best in industry growth
  • Diluted earnings per share (“EPS”) of $2.00 grew 27% year-over-year, best in industry growth
  • Core Adjusted EBITDA(2) of $7.6 billion grew 8% year-over-year, best in industry growth
  • Net cash provided by operating activities of $5.1 billion grew 25% year-over-year, record high for Q1
  • Adjusted Free Cash Flow(2) of $3.3 billion grew 39% year-over-year, record high for Q1
  • Returned $4.3 billion to stockholders in Q1 2024, including repurchases of $3.6 billion of common stock and its second quarterly dividend payment of $769 million

T-Mobile Strengthens Largest, Fastest and Most Advanced 5G Network with Additional Mid-Band Spectrum

  • Nearly 95% of 5G network traffic on mid-band spectrum given the expansive breadth and depth of deployment
  • 85% of 5G traffic carried on sites with all three spectrum layers, delivering an incredibly consistent network experience

Bellevue, WA — April 25, 2024 — T-Mobile US, Inc. (NASDAQ: TMUS) reported first quarter 2024 results today, raising full-year guidance and delivering industry-leading customer growth, including taking a higher share of postpaid phone net additions year-over-year and matching its lowest ever Q1 postpaid phone churn. The company translated best-in-class customer growth into industry-leading growth in service revenues and profitability, while returning $4.3 billion to stockholders in the quarter. The Un-carrier continues to build on its recent successes as a top broadband provider by surpassing 5 million High Speed Internet customers.

“T-Mobile had a great start to 2024 with industry-leading growth in service revenues and profitability,” said Mike Sievert, CEO of T-Mobile. “Even as the rest of wireless saw moderated customer growth, our momentum continued thanks to our increasingly differentiated combination of the best value, best network, and best experiences that customers love. We’re excited about our path forward and our raised guidance for 2024 reflects our confidence in what’s to come.”
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(1) AT&T Inc. does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. Industry-leading claims are based on consensus expectations if results are not yet reported.
(2) Core Adjusted EBITDA and Adjusted Free Cash Flow are non-GAAP financial measures. These non-GAAP financial measures 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 measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are 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 Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.

Industry-Leading Customer Growth Fueled by Best Network and Best Value Combination(1)

  • Postpaid net account additions of 218 thousand decreased 69 thousand year-over-year.
  • Postpaid net customer additions of 1.2 million decreased 73 thousand year-over-year.
  • Postpaid phone net customer additions of 532 thousand decreased 6 thousand year-over-year. Postpaid phone churn of 0.86% improved 3 basis points year-over-year.
  • Prepaid net customer losses of 48 thousand decreased 74 thousand year-over-year. Prepaid churn of 2.75% improved 1 basis point year-over-year.
  • High Speed Internet net customer additions of 405 thousand decreased 118 thousand year-over-year. T-Mobile ended the quarter with 5.2 million High Speed Internet customers.
  • Total net customer additions of 1.2 million decreased 147 thousand year-over-year. Total customer connections increased to a record high of 120.9 million.

(1) AT&T Inc. does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net customer additions. Industry-leading claims are based on consensus expectations if results are not yet reported.

Translating Industry-Leading Customer Growth Into Industry-Leading Financial Performance(1)

  • Total service revenues of $16.1 billion increased 4% year-over-year, and Postpaid service revenues of $12.6 billion increased 6% year-over-year.
  • Net income of $2.4 billion increased 22% year-over-year, which included Merger-related costs, net of tax, of $97 million.
  • Diluted EPS of $2.00 per share increased 27% year-over-year.
  • Core Adjusted EBITDA of $7.6 billion increased 8% year-over-year.
  • Net cash provided by operating activities of$5.1 billionincreased 25% year-over-year, which included cash payments for Merger-related costs of $293 million.
  • Cash purchases of property and equipment, including capitalized interest, of $2.6 billion decreased 12% year-over-year.
  • Adjusted Free Cash Flow of $3.3 billion increased 39% year-over-year, which included cash payments for Merger-related costs of $293 million.
  • Stockholder Returns included 21.9 million shares of common stock repurchased for $3.6 billion in Q1 2024, with 136.2 million cumulative shares repurchased for $19.8 billion as of March 31, 2024. The remaining authorization for stock repurchases and quarterly cash dividends through December 2024 is $11.7 billion, with the next dividend payable on June 13, 2024.

(1) Industry-leading claims are based on consensus expectations if results are not yet reported.

T-Mobile Strengthens Largest, Fastest and Most Advanced 5G Network with Additional Mid-Band Spectrum

T-Mobile’s best-in-class Ultra Capacity 5G network has the deepest dedicated mid-band 5G spectrum deployment, with nearly 95% of 5G network traffic on mid-band including the recently deployed Auction 108 spectrum. The company’s unique multi-layer approach to 5G, with dedicated standalone 5G deployed nationwide across 600MHz, 1.9GHz, and 2.5GHz delivers customers a consistently strong experience, with 85% of 5G traffic on sites with all three spectrum bands deployed.

T-Mobile’s 5G leadership has translated into overall network leadership, while 5G is increasingly becoming the overall network experience for customers. Approximately 75% of postpaid phone customers are on a 5G device and the company has earned third-party recognition for its overall network performance.

Note: See 5G device, coverage, & access details at T-Mobile.com. Fastest: Based on median, overall combined speeds according to analysis by Ookla® of Speedtest Intelligence® data download speeds for Q4 2023. Ookla trademarks used under license and reprinted with permission. Opensignal Awards: USA: Mobile Network Experience Report January 2024, based on independent analysis of mobile measurements recorded during the period September 16 – December 14, 2023. © 2024 Opensignal Limited.

Raising 2024 Guidance

  • Postpaid net customer additions are expected to be between 5.2 million and 5.6 million, an increase from prior guidance of 5.0 million to 5.5 million.
  • Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $31.4 billion and $31.9 billion, an increase from prior guidance of $31.3 billion to $31.9 billion.
  • Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $21.6 billion and $22.3 billion, an increase from prior guidance of $21.5 billion to $22.3 billion.
  • Cash purchases of property and equipment, including capitalized interest, are expected to be between $8.6 billion and $9.4 billion.
  • Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $16.4 billion and $16.9 billion, an increase from prior guidance of $16.3 billion to $16.9 billion. Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization.

Financial Results

For more details on T-Mobile’s Q1 2024 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at https://investor.t-mobile.com.

Earnings Call Information

Date/Time

  • Thursday, April 25, 2024, at 4:30 p.m. (EDT)

Pre-registration link for dial-in access

Participants can pre-register for the conference call here in order to receive dial-in information.

Access via Phone (audio only)

Please plan on accessing the call 10 minutes prior to the scheduled start time.

  • Toll Free: 1-866-777-2509
  • International: 1-412-317-5413

Access via Webcast

The earnings call will be broadcasted live and can be replayed via the Investor Relations website at https://investor.t-mobile.com.

Submit Questions via X

Send a post to @TMobileIR or @MikeSievert using $TMUS

Contact Information

T-Mobile Social Media
Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (https://investor.t-mobile.com), newsroom website (https://t-mobile.com/news), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD (the @TMobileIR X account (https://twitter.com/TMobileIR), the @MikeSievert X account (https://twitter.com/MikeSievert), which Mr. Sievert also uses as a means for personal communications and observations, and the @TMobileCFO X account (https://twitter.com/tmobilecfo), and our CFO’s LinkedIn account (https://www.linkedin.com/in/peter-osvaldik-3887394), both of which Mr. Osvaldik also uses as a means for personal communication and observations). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.

About T-Mobile US, Inc.
T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For more information please visit: https://www.t-mobile.com.

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