T-Mobile Press Release| May 6, 2020
BELLEVUE, Wash.–(BUSINESS WIRE)– T-Mobile US, Inc. (NASDAQ: TMUS):
Industry-Leading Customer Growth
- 777,000 branded postpaid net additions in Q1 2020, best in industry
- 452,000 branded postpaid phone net additions in Q1 2020, best in industry
- 649,000 total branded net additions in Q1 2020, best in industry
- Record-low Q1 branded postpaid phone churn of 0.86% in Q1 2020, down 2 bps YoY
- Record-low Q1 branded prepaid churn of 3.52% in Q1 2020, down 33bps YoY
Record Financial Performance (all percentages year-over-year)
- Record Service revenues of $8.7 billion, up 5% in Q1 2020, with Branded postpaid service revenues up 7%
- Record Q1 Net income of $951 million, up 5% in Q1 2020
- Record Q1 Diluted earnings per share (“EPS”) of $1.10, up 4% in Q1 2020
- Record Adjusted EBITDA(1) of $3.7 billion, up 12% in Q1 2020
- Record Q1 Net cash provided by operating activities of $1.6 billion, up 16% in Q1 2020
- Record Q1 Free Cash Flow(1) of $732 million, up 18% in Q1 2020
Expanding 5G Network Capabilities
- Rapid start to deploying 5G sites in Philadelphia and New York City using Sprint’s 2.5 GHz mid-band spectrum on T-Mobile’s 5G network
- After launching America’s first nationwide 5G network on our 600 MHz spectrum in December 2019, we further expanded our 5G footprint across an additional 1,600 sites in Q1 2020 and ramped pace to 1,000 sites in April 2020
- 600 MHz 5G now covers 215 million people including the cities of Detroit, St. Louis and Columbus with the Bay Area added this week and more cities coming online soon
- Over 50 million New T-Mobile devices have access to the 600 MHz LTE network and 5G access is being made available to Sprint customers
COVID-19 – Providing Essential Connectivity, While Ensuring Employee Safety
- Partnered with multiple spectrum holders and the FCC to temporarily deploy additional 600 MHz spectrum, effectively doubling total 600 MHz LTE capacity across the nation
- We committed to the FCC’s Keep Americans Connected pledge by maintaining service and waiving late fees for residential and small business customers impacted by COVID-19
- Accelerated the launch of T-Mobile Connect – T-Mobile’s lowest priced smartphone plan ever
- In mid-March, before the merger with Sprint, we closed approximately 80% of our company-owned retail stores, implemented remote working arrangements for our care teams and encouraged our employees to work remotely
- In compliance with the regulations in various states, we have since reopened a number of our previously closed stores
- We perform incremental deep cleaning and keep additional cleaning products stocked in the stores that remain open
- We supplemented pay to certain of our employees and commissions for third-party dealers impacted by COVID-19
Sprint – Supercharging the Un-carrier, Unlocking Potential and Increasing Competition
- On April 1, 2020, we closed on our merger with Sprint, supercharging the Un-carrier
- We expect to be able to rapidly build the world’s best 5G network, accelerating innovation and increasing competition in the U.S. wireless, video and broadband industries
- Customers are already seeing the benefits with millions of Sprint customers now able to access our LTE network
- Sprint customers now have access to more than double the number of LTE sites than on Sprint’s network alone
- Synergies have the potential to unlock massive scale and unleash an expected $43 billion in value for shareholders
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(1) | Adjusted EBITDA and 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 financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. |
T-Mobile US, Inc. (NASDAQ: TMUS) delivered a record-setting first quarter in 2020, reporting industry-leading customer growth and record first quarter financials despite this uncertain environment. Following another successful year in 2019, America’s Un-carrier started 2020 off strong, delivering record service revenues, record Q1 net income and record Adjusted EBITDA – all while continuing to lead the industry in postpaid phone net customer additions for the 25th consecutive quarter.
T-Mobile successfully completed its merger with Sprint, on April 1, 2020, to the create the New T-Mobile, laying the foundation for its future as the growth company in telecom. In the years ahead, the combined company sees a significant value creation opportunity as it works to unlock the potential of the increased scale from the combination and the achievement of an expected $43 billion in synergies. The result will be a dramatically lower cost structure and the ability to deliver better services at lower prices. In a very short time, the company has made progress on building the world’s best 5G network, which we expect to yield massive increases in capacity, 14 times standalone T-Mobile within 6 years, finally breaking down the industry trade-off between a better value or a better network – with the New T-Mobile, customers will get both.
Connectivity is more essential than ever in the current climate, and we have once again shown that we will always be there to serve our customers. Amid the COVID-19 pandemic, T-Mobile immediately implemented response and relief efforts by temporarily deploying additional 600 MHz spectrum through agreements with multiple spectrum holders and the FCC – effectively doubling our total 600 MHz LTE capacity across the country, modifying our policies to ensure customers can stay connected when they need it most by temporarily removing data caps from select plans and offering 20GB of additional hotspot data to every customer with a smartphone hotspot, and accelerating the launch of T-Mobile Connect – our lowest priced smartphone plan ever – to help ensure everyone can get connected, and stay connected, affordably. We strengthened our network, served our retail customers with creative new solutions, and reconfigured our award-winning customer care to continue providing essential services in these uncertain times while working from home. As the economy rebounds, New T-Mobile is uniquely positioned as the growth company in telecom and has already started laying the foundation for the future.
“Just five weeks ago, we merged with Sprint to create the New T-Mobile, and we’re more excited today than ever before about the massive value creation opportunity and synergy potential that lies ahead. We are off to the races laying the foundation for the future of the New T-Mobile as we work to execute on our business plan and harness the incredible opportunity ahead,” said Mike Sievert, President and CEO of T-Mobile. “In the face of a challenging climate for Q1, T-Mobile once again led the industry in postpaid phone net customer additions and set even more financial records, including record service revenues, record Q1 Net income and record Adjusted EBITDA. Additionally, I’m so proud of our teams for their creative and passionate work in the face of the COVID-19 health crisis as we continue to provide crucial connectivity to our customers and impacted communities, while ensuring the safety of our employees.”
While the COVID-19 pandemic has adversely impacted, and will continue to adversely impact, T-Mobile’s business and operating results, the company continues to work to ensure the health and safety of its employees, the ongoing reliability of its network, which continues to perform strongly and function with minimal interruptions, and the ability to serve and connect our customers. These prioritizations have resulted in key operational changes, affecting T-Mobile’s service revenues, equipment revenues, customer additions, churn rate and SG&A expenses, including increased labor costs. Additionally, T-Mobile continues to actively monitor and assess the impacts of COVID-19 on all facets of its business and operations, and as a result – the company is not in position to issue full year guidance, which depends on future developments that remain highly uncertain and unpredictable at this time, including the severity of the COVID-19 pandemic and related mitigation and response efforts. We anticipate providing a refined outlook for full-year 2020 on our second quarter earnings results. More information can be found in our 10-Q and Investor Factbook.
Click for original and complet T-Mobile Q1 2020 Earnings press release