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T-Mobile Reports Record Financials and Strong Customer Growth in FY 2018, Guidance Sets the Stage for a Strong 2019

T-Mobile Press Release
February 7, 2019

CLICK FOR COMPLETE T-MOBILE RELEASE
Feb 07, 2019
Record High Revenues, Accelerating Customer Net Additions and Record Low Postpaid Phone Churn Close out 2018; Strong Outlook for 2019 Shows Continued Momentum for the Un-carrier

BELLEVUE, Wash.–(BUSINESS WIRE)– T-Mobile US, Inc. (NASDAQ: TMUS):

Record Financial Performance in FY 2018 (all percentages year-over-year)

  • Record Service revenues of $8.2 billion, up 6% in Q4 2018 — up 6% to $32.0 billion in 2018
  • Record Total revenues of $11.4 billion, up 6% in Q4 2018 — up 7% to $43.3 billion in 2018
  • Strong Net income of $640 million, down 76% in Q4 2018 — down 36% to $2.9 billion in 2018
    • Up 21% and 22% in Q4 2018 and 2018, respectively, excluding the impact of the Tax Cuts and Jobs Act (“TCJA”) of $2.2 billion in 2017
  • Diluted earnings per share (“EPS”) of $0.75 and $3.36 in Q4 2018 and 2018, respectively
  • Record Q4 Adjusted EBITDA(1) of $3.0 billion, up 10% in Q4 2018 — up 11% to $12.4 billion in 2018
  • Strong Net cash provided by operating activities(2) of $954 million, up 10%, and $3.9 billion, up 2%, in Q4 2018 and 2018, respectively
  • Record Free Cash Flow(1)(2) of $1.2 billion, up 7% in Q4 2018 — up 30% to $3.6 billion in 2018

Accelerating Customer Growth

  • Record 2.4 million total net additions in Q4 2018 — 7.0 million in 2018
  • 1.4 million branded postpaid net additions in Q4 2018, best in the industry — 4.5 million in 2018
  • 1.0 million branded postpaid phone net additions in Q4 2018, best in industry — 3.1 million in 2018
  • 135,000 branded prepaid net additions in Q4 2018, expect to be best in the industry — 460,000 in 2018
  • Q4 record-low branded postpaid phone churn of 0.99% in Q4 2018, down 19 bps YoY — 1.01% in 2018, down 17 bps from 2017

Building the First Real 5G Network While Improving 4G LTE

  • T-Mobile is building out standards-based 5G today, plans to have nationwide 5G coverage next year
  • Aggressive deployment of 600 MHz using 5G ready equipment, now reaching over 2,700 cities and towns on 29 devices
  • T-Mobile now covers more than 325 million people with 4G LTE
  • Fastest 4G LTE network for 20th consecutive quarter based on analysis by Ookla® of Speedtest Intelligence® data

Strong Outlook for 2019

  • Branded postpaid net customer additions of 2.6 to 3.6 million
  • Net income is not available on a forward-looking basis(3)
  • Adjusted EBITDA target, excluding the impact of the new lease standard, of $12.7 to $13.2 billion, which includes leasing revenues of $0.6 to $0.7 billion(1)
  • Cash purchases of property and equipment, excluding capitalized interest of approximately $400 million, of $5.4 to $5.7 billion and cash purchases of property and equipment, including capitalized interest, of $5.8 to $6.1 billion
  • Three-year compound annual growth rate (CAGR) from FY 2016 to FY 2019 for Net cash provided by operating activities is expected to be at 17% – 21%, up from prior guidance of 7% – 12%(2)
  • Three-year CAGR from FY 2016 to FY 2019 for Free Cash Flow maintained at 46% – 48%(1)(2)

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