T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues and Profitability in Q2, Raises 2024 Customer and Cash Flow Guidance
T-Mobile US (NASDAQ: TMUS) reported strong Q2 2024 results, showcasing industry-leading growth across key metrics. The company added 777,000 postpaid phone customers, its best Q2 performance ever, and surpassed 100 million postpaid customers. Financial highlights include:
- Service revenues up 4% YoY to $16.4 billion
- Net income grew 32% YoY to $2.9 billion
- EPS increased 34% YoY to $2.49
- Core Adjusted EBITDA rose 9% YoY to $8.0 billion
- Record Adjusted Free Cash Flow of $4.4 billion, up 54% YoY
T-Mobile maintained its network leadership, ranking first in overall performance in third-party reports. The company raised its full-year customer and cash flow guidance, reflecting confidence in its growth strategy and market position.
T-Mobile US (NASDAQ: TMUS) ha riportato risultati solidi per il secondo trimestre del 2024, evidenziando una crescita leader nel settore in tutte le metriche chiave. L'azienda ha aggiunto 777.000 clienti postpagati per telefoni, il miglior risultato di sempre per un secondo trimestre, superando 100 milioni di clienti postpagati. I punti salienti finanziari includono:
- Ricavi dei servizi in aumento del 4% anno su anno a $16,4 miliardi
- Utile netto cresciuto del 32% anno su anno a $2,9 miliardi
- EPS aumentato del 34% anno su anno a $2,49
- EBITDA Core Giustificato crescuto del 9% anno su anno a $8,0 miliardi
- Record di Flusso di Cassa Libero Giustificato di $4,4 miliardi, in aumento del 54% anno su anno
T-Mobile ha mantenuto la sua leadership nella rete, classificandosi al primo posto per prestazioni complessive in rapporti di terze parti. L'azienda ha aumentato le previsioni sui clienti e sul flusso di cassa per l'intero anno, riflettendo fiducia nella sua strategia di crescita e nella posizione di mercato.
T-Mobile US (NASDAQ: TMUS) comunicó resultados sólidos para el segundo trimestre de 2024, mostrando un crecimiento líder en la industria en métricas clave. La compañía agregó 777,000 clientes postpagados de teléfonos, su mejor desempeño en un segundo trimestre, y superó 100 millones de clientes postpagados. Los aspectos financieros destacados incluyen:
- Ingresos por servicios en aumento del 4% interanual a $16.4 mil millones
- Ingreso neto creció un 32% interanual a $2.9 mil millones
- EPS aumentó un 34% interanual a $2.49
- EBITDA Ajustado Kern creció un 9% interanual a $8.0 mil millones
- Récord de Flujo de Caja Libre Ajustado de $4.4 mil millones, un aumento del 54% interanual
T-Mobile mantuvo su liderazgo en la red, clasificándose en primer lugar en rendimiento general en informes de terceros. La empresa aumentó sus previsiones de clientes y flujo de efectivo para todo el año, lo que refleja confianza en su estrategia de crecimiento y posición en el mercado.
T-Mobile US (NASDAQ: TMUS)는 2024년 2분기 실적이 훌륭하다고 보고하며, 주요 지표에서 업계 선도적인 성장을 보여주었습니다. 이 회사는 777,000명의 후불 전화 고객을 추가했으며, 이는 2분기 최고의 실적이며 1억 명 이상의 후불 고객을 초과했습니다. 재무 주요 사항은 다음과 같습니다:
- 서비스 수익 16억 4천만 달러로 전년 대비 4% 증가
- 순 이익 29억 달러로 전년 대비 32% 증가
- EPS가 2.49달러로 전년 대비 34% 증가
- 핵심 조정 EBITDA 80억 달러로 전년 대비 9% 증가
- 조정된 자유 현금 흐름 44억 달러로 전년 대비 54% 증가
T-Mobile은 네트워크 리더십을 유지하며 제3자 보고서에서 전반적인 성능 1위를 기록했습니다. 이 회사는 연간 고객 및 현금 흐름 가이드를 상향 조정하여 성장 전략과 시장 위치에 대한 자신감을 반영했습니다.
T-Mobile US (NASDAQ: TMUS) a rapporté des résultats solides pour le deuxième trimestre 2024, démontrant une croissance leader dans l'industrie à travers des indicateurs clés. L'entreprise a ajouté 777 000 clients téléphoniques postpayés, le meilleur résultat jamais enregistré pour un deuxième trimestre, dépassant ainsi 100 millions de clients postpayés. Les points saillants financiers comprennent :
- Revenus de services en hausse de 4 % d'une année sur l'autre à 16,4 milliards de dollars
- Le bénéfice net a connu une augmentation de 32 % d'une année sur l'autre, atteignant 2,9 milliards de dollars
- Le BPA a augmenté de 34 % d'une année sur l'autre à 2,49 dollars
- L'EBITDA ajusté de base a crû de 9 % d'une année sur l'autre à 8,0 milliards de dollars
- Un flux de trésorerie libre ajusté record de 4,4 milliards de dollars, en hausse de 54 % d'une année sur l'autre
T-Mobile a maintenu sa dominance réseau, occupant la première place en matière de performance globale dans des rapports tiers. L'entreprise a rehaussé ses prévisions de clients et de flux de trésorerie pour l'année entière, ce qui reflète sa confiance dans sa stratégie de croissance et sa position sur le marché.
T-Mobile US (NASDAQ: TMUS) hat starke Ergebnisse für das zweite Quartal 2024 präsentiert und damit das branchenführende Wachstum in allen wichtigen Kennzahlen unter Beweis gestellt. Das Unternehmen hat 777.000 nachvertragliche Telefonkunden hinzugewonnen, das beste Ergebnis eines zweiten Quartals aller Zeiten, und hat 100 Millionen nachvertragliche Kunden überschritten. Die finanziellen Highlights umfassen:
- Dienstleistungsumsätze um 4% im Jahresvergleich auf 16,4 Milliarden USD gestiegen
- Nettoergebnis um 32% im Jahresvergleich auf 2,9 Milliarden USD gewachsen
- EPS um 34% im Jahresvergleich auf 2,49 USD gestiegen
- Kernanpassung des EBITDA um 9% im Jahresvergleich auf 8,0 Milliarden USD gestiegen
- Rekordhöhe des angepassten freien Cashflows von 4,4 Milliarden USD, eine Steigerung um 54% im Jahresvergleich
T-Mobile hat seine Netzwerkführerschaft behauptet und belegt den ersten Platz in der Gesamtbewertung in Berichten von Dritten. Das Unternehmen hat seine Prognosen für die Anzahl der Kunden und den Cashflow für das gesamte Jahr angehoben, was sein Vertrauen in die Wachstumsstrategie und Marktposition widerspiegelt.
- Record Q2 postpaid phone net customer additions of 777,000
- Surpassed 100 million postpaid customers milestone
- Service revenues increased 4% year-over-year to $16.4 billion
- Net income grew 32% year-over-year to $2.9 billion
- EPS rose 34% year-over-year to $2.49
- Core Adjusted EBITDA increased 9% year-over-year to $8.0 billion
- Record Adjusted Free Cash Flow of $4.4 billion, up 54% year-over-year
- Returned $3.0 billion to stockholders in Q2 2024
- Raised full-year customer and cash flow guidance
- None.
Insights
T-Mobile's Q2 2024 results demonstrate robust growth across key metrics, signaling strong market performance and financial health. The company reported
The company's profitability metrics are equally impressive. Net income surged
Cash flow performance was particularly strong, with net cash from operating activities reaching a record
The raised guidance for customer growth and cash flow indicates management's confidence in sustaining this momentum. Investors should view these results positively, as they reflect T-Mobile's strong market position and effective execution of its growth strategy.
T-Mobile's Q2 2024 performance underscores its continued dominance in the US telecom market. The company's industry-leading customer growth is particularly noteworthy, with 301,000 postpaid net account additions and 1.3 million postpaid net customer additions. Crossing the 100 million postpaid customers milestone is a significant achievement, reflecting T-Mobile's strong brand appeal and competitive offerings.
The standout figure is the 777,000 postpaid phone net customer additions, the highest Q2 in company history. This, coupled with a low postpaid phone churn rate of
T-Mobile's network leadership, as evidenced by third-party reports, is a important factor in its market success. The company's claim of having the largest, fastest and most advanced 5G network, with
The proposed acquisition of Metronet, the fastest-growing pure-play fiber provider, indicates T-Mobile's strategic focus on expanding its broadband offerings. This move could further strengthen its position in the home internet market, providing additional growth opportunities beyond its core mobile business.
T-Mobile's Q2 2024 results reveal a company outperforming its peers across multiple fronts. The Un-carrier strategy continues to resonate with consumers, driving industry-leading growth in both customer acquisition and financial metrics. This performance is particularly impressive given the mature and highly competitive nature of the US telecom market.
The company's success in postpaid phone net additions, reaching 777,000 in Q2, suggests that T-Mobile is effectively capturing market share from competitors. This growth, combined with the low churn rate of
T-Mobile's expansion into the home internet market is a strategic move that's paying dividends. With 406,000 net additions in High Speed Internet, the company is successfully leveraging its 5G network to compete in the fixed broadband space. This diversification not only opens up new revenue streams but also positions T-Mobile as a more comprehensive telecom provider.
The company's network leadership, as validated by third-party reports, provides a solid foundation for continued growth. T-Mobile's ability to deliver consistent network performance across its coverage area, thanks to its three-layer spectrum strategy, gives it a significant edge in customer experience.
Looking ahead, T-Mobile's raised guidance for customer growth and cash flow suggests confidence in its ability to maintain momentum. The proposed acquisition of Metronet indicates a strategic focus on expanding its fiber offerings, which could further strengthen its competitive position in the broadband market. This multi-pronged approach to growth, spanning mobile, fixed wireless and fiber, positions T-Mobile well for continued success in the evolving telecom landscape.
Un-carrier Delivers Best Q2 Postpaid Phone Net Customer Additions in Company History and Maintains Network Leadership with Largest, Fastest and Most Advanced 5G Network
Industry-Leading Customer Growth Fueled by Best Network and Best Value Combination(1)
- Postpaid net account additions of 301 thousand, best in industry
- Postpaid net customer additions of 1.3 million, best in industry, crossed 100 million postpaid customers milestone
-
Postpaid phone net customer additions of 777 thousand, best in industry, highest Q2 in company history, and postpaid phone churn of
0.80% - High Speed Internet net customer additions of 406 thousand, best in industry, highest share of industry net additions ever
Translating Industry-Leading Customer Growth Into Industry-Leading Financial Performance
-
Service revenues of
$16.4 billion 4% year-over-year, best in industry growth -
Postpaid service revenues of
$12.9 billion 7% year-over-year, best in industry growth -
Net income of
$2.9 billion 32% year-over-year, best in industry growth -
Diluted earnings per share (“EPS”) of
$2.49 34% year-over-year, best in industry growth -
Core Adjusted EBITDA(2) of
$8.0 billion 9% year-over-year, best in industry growth -
Net cash provided by operating activities of
$5.5 billion 27% year-over-year -
Adjusted Free Cash Flow(2) of
$4.4 billion 54% year-over-year -
Returned
$3.0 billion $2.3 billion $759 million
Overall Network Leader with Largest, Fastest and Most Advanced 5G Network
- Swept every category for overall network performance in the latest third-party reports, including most consistent overall network and highest ranking consumer sentiment from Ookla and ranking first for all overall network experience metrics from Opensignal
-
87% of 5G traffic carried on sites with three spectrum layers, delivering an incredibly consistent network experience
T-Mobile US, Inc. (NASDAQ: TMUS) reported second quarter 2024 results today, raising full-year customer and cash flow guidance while delivering industry-leading customer growth across the board, including crossing the 100 million postpaid customers milestone and the highest Q2 postpaid phone net customer additions in company history. The company translated best-in-class customer growth into industry-leading growth in service revenues and profitability, and delivered record cash flows while returning
“It was another industry-leading quarter for T-Mobile as our continued focus on delivering customers more value and a superior network experience enabled us to outperform our peers in the marketplace and translated into outsized financial growth,” said Mike Sievert, CEO of T-Mobile. “Our formula is continuing to work and we’ve got a lot of room to run including pursuing new growth opportunities that bring the Un-carrier experience to more customers and new markets. This incredible momentum makes us even more excited for what’s next for T-Mobile, and our confidence is reflected in our raised guidance for the full year ahead.”
___________________________________________________________
(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 301 thousand increased 2 thousand year-over-year.
- Postpaid net customer additions of 1.3 million decreased 223 thousand year-over-year.
-
Postpaid phone net customer additions of 777 thousand increased 17 thousand year-over-year. Postpaid phone churn of
0.80% increased 3 basis points year-over-year. -
Prepaid net customer additions of 179 thousand increased 55 thousand year-over-year. Prepaid churn of
2.54% improved 8 basis points year-over-year, inclusive of the impact of the Ka’ena acquisition.(3) - High Speed Internet net customer additions of 406 thousand decreased 103 thousand year-over-year. T-Mobile ended the quarter with 5.6 million High Speed Internet customers.
- Total net customer additions of 1.5 million decreased 168 thousand year-over-year. Total customer connections increased to a record high of 125.9 million.
|
Quarter |
|
Six Months Ended
|
|||||||||||
(in thousands, except churn) |
Q2 2024 |
|
Q1 2024 |
|
Q2 2023 |
|
2024 |
|
2023 |
|||||
Postpaid net account additions |
301 |
|
|
218 |
|
|
299 |
|
|
519 |
|
|
586 |
|
Total net customer additions |
1,517 |
|
|
1,172 |
|
|
1,685 |
|
|
2,689 |
|
|
3,004 |
|
Postpaid net customer additions |
1,338 |
|
|
1,220 |
|
|
1,561 |
|
|
2,558 |
|
|
2,854 |
|
Postpaid phone net customer additions |
777 |
|
|
532 |
|
|
760 |
|
|
1,309 |
|
|
1,298 |
|
Postpaid other net customer additions (2) |
561 |
|
|
688 |
|
|
801 |
|
|
1,249 |
|
|
1,556 |
|
Prepaid net customer additions (losses) (2) |
179 |
|
|
(48 |
) |
|
124 |
|
|
131 |
|
|
150 |
|
Total customers, end of period (2) (3) |
125,893 |
|
|
120,872 |
|
|
116,602 |
|
|
125,893 |
|
|
116,602 |
|
Postpaid phone churn |
0.80 |
% |
|
0.86 |
% |
|
0.77 |
% |
|
0.83 |
% |
|
0.83 |
% |
Prepaid churn |
2.54 |
% |
|
2.75 |
% |
|
2.62 |
% |
|
2.64 |
% |
|
2.69 |
% |
High Speed Internet net customer additions |
406 |
|
|
405 |
|
|
509 |
|
|
811 |
|
|
1,032 |
|
Total High Speed Internet customers, end of period |
5,587 |
|
|
5,181 |
|
|
3,678 |
|
|
5,587 |
|
|
3,678 |
|
(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) |
Includes High Speed Internet customers. |
|
(3) |
In the second quarter of 2024, we acquired 3,504,000 prepaid customers through our acquisition of Ka’ena, which includes the impact of certain base adjustments to align the policies of Ka’ena and T-Mobile. |
Translating Industry-Leading Customer Growth Into Industry-Leading Financial Performance(1)
-
Total service revenues of
$16.4 billion 4% year-over-year, and Postpaid service revenues of$12.9 billion 7% year-over-year. -
Net income of
$2.9 billion 32% year-over-year. -
Diluted EPS of
$2.49 34% year-over-year. -
Core Adjusted EBITDA of
$8.0 billion 9% year-over-year. -
Net cash provided by operating activities of
$5.5 billion 27% year-over-year, which included cash payments for Merger-related costs of$241 million -
Cash purchases of property and equipment, including capitalized interest, of
$2.0 billion 27% year-over-year. -
Adjusted Free Cash Flow of
$4.4 billion 54% year-over-year, which included cash payments for Merger-related costs of$241 million -
Stockholder Returns included 14.0 million shares of common stock repurchased for
$2.3 billion $22.1 billion $8.7 billion
|
Quarter |
|
Six Months Ended
|
|
Q2 2024 vs. Q1 2024 |
|
Q2 2024 vs. Q2 2023 |
|
YTD 2024 vs. YTD 2023 |
||||||||||||||
(in millions, except EPS) |
Q2 2024 |
|
Q1 2024 |
|
Q2 2023 |
2024 |
|
2023 |
|
|
|||||||||||||
Total service revenues |
$ |
16,429 |
|
$ |
16,096 |
|
$ |
15,738 |
|
$ |
32,525 |
|
$ |
31,284 |
|
2.1 |
% |
|
4.4 |
% |
|
4.0 |
% |
Postpaid service revenues |
|
12,899 |
|
|
12,631 |
|
|
12,070 |
|
|
25,530 |
|
|
23,932 |
|
2.1 |
% |
|
6.9 |
% |
|
6.7 |
% |
Total revenues |
|
19,772 |
|
|
19,594 |
|
|
19,196 |
|
|
39,366 |
|
|
38,828 |
|
0.9 |
% |
|
3.0 |
% |
|
1.4 |
% |
Net income |
|
2,925 |
|
|
2,374 |
|
|
2,221 |
|
|
5,299 |
|
|
4,161 |
|
23.2 |
% |
|
31.7 |
% |
|
27.3 |
% |
Diluted EPS |
|
2.49 |
|
|
2.00 |
|
|
1.86 |
|
|
4.49 |
|
|
3.44 |
|
24.5 |
% |
|
33.9 |
% |
|
30.5 |
% |
Adjusted EBITDA |
|
8,053 |
|
|
7,652 |
|
|
7,405 |
|
|
15,705 |
|
|
14,604 |
|
5.2 |
% |
|
8.8 |
% |
|
7.5 |
% |
Core Adjusted EBITDA |
|
8,027 |
|
|
7,617 |
|
|
7,336 |
|
|
15,644 |
|
|
14,388 |
|
5.4 |
% |
|
9.4 |
% |
|
8.7 |
% |
Net cash provided by operating activities |
|
5,521 |
|
|
5,084 |
|
|
4,355 |
|
|
10,605 |
|
|
8,406 |
|
8.6 |
% |
|
26.8 |
% |
|
26.2 |
% |
Cash purchases of property and equipment, including capitalized interest |
|
2,040 |
|
|
2,627 |
|
|
2,789 |
|
|
4,667 |
|
|
5,790 |
|
(22.3 |
)% |
|
(26.9 |
)% |
|
(19.4 |
)% |
Adjusted Free Cash Flow |
|
4,439 |
|
|
3,347 |
|
|
2,877 |
|
|
7,786 |
|
|
5,278 |
|
32.6 |
% |
|
54.3 |
% |
|
47.5 |
% |
(1) |
Industry-leading claims are based on consensus expectations if results are not yet reported. |
Overall Network Leader with Largest, Fastest and Most Advanced 5G Network
T-Mobile’s network breadth, depth and technology leadership is expected to keep the company years ahead of the competition with total 5G and Ultra Capacity 5G coverage area that continues to far exceed that of the next closest competitor. 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 and
T-Mobile’s 5G leadership has translated into overall network leadership, with the company continuing to earn third-party recognition for its overall network performance:
- Ookla: In its Speedtest Connectivity United States 1H 2024 report, T-Mobile ranked as the top network performer in seven categories, including wins for fastest overall and 5G network and most consistent overall network, along with best overall and 5G mobile video experience, best gaming experience and highest ranking consumer sentiment.
-
Opensignal: In its latest
USA Mobile Network Experience report, T-Mobile ranked first for all overall network experience metrics while also earning additional wins for 5G with the fastest 5G download speeds, best 5G coverage experience and best 5G availability.
Note: See 5G device, coverage, and access details at T-Mobile.com. Ookla awards: Based on analysis by Ookla® of Speedtest Intelligence® data for the |
Raising 2024 Customer and Cash Flow Guidance
- Postpaid net customer additions are expected to be between 5.4 million and 5.7 million, an increase from prior guidance of 5.2 million to 5.6 million.
-
Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between
$31.5 billion $31.8 billion $31.4 billion $31.9 billion -
Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between
$21.8 billion $22.2 billion $21.6 billion $22.3 billion -
Cash purchases of property and equipment, including capitalized interest, are expected to be between
$8.7 billion $9.1 billion $8.6 billion $9.4 billion -
Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between
$16.6 billion $17.0 billion $16.4 billion $16.9 billion
(in millions, except Postpaid net customer additions and Effective tax rate) |
Previous |
|
Current |
|
Change
|
||||||||||||||
Postpaid net customer additions (thousands) |
|
5,200 |
|
|
|
5,600 |
|
|
|
5,400 |
|
|
|
5,700 |
|
|
|
150 |
|
Net income (1) |
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
|
|
N/A |
|
Effective tax rate |
|
24 |
% |
|
|
26 |
% |
|
|
24 |
% |
|
|
25 |
% |
|
|
(50) bps |
|
Core Adjusted EBITDA (2) |
$ |
31,400 |
|
|
$ |
31,900 |
|
|
$ |
31,500 |
|
|
$ |
31,800 |
|
|
$ |
— |
|
Net cash provided by operating activities |
|
21,600 |
|
|
|
22,300 |
|
|
|
21,800 |
|
|
|
22,200 |
|
|
|
50 |
|
Capital expenditures (3) |
|
8,600 |
|
|
|
9,400 |
|
|
|
8,700 |
|
|
|
9,100 |
|
|
|
(100 |
) |
Adjusted Free Cash Flow (4) |
|
16,400 |
|
|
|
16,900 |
|
|
|
16,600 |
|
|
|
17,000 |
|
|
|
150 |
|
(1) |
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 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. |
|
(2) |
Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of Company operations, excluding the impact of lease revenues from related device financing programs. Guidance ranges assume lease revenues of approximately |
|
(3) |
Capital expenditures means cash purchases of property and equipment, including capitalized interest. |
|
(4) |
Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024. |
Financial Results
For more details on T-Mobile’s Q2 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
- Wednesday, July 31, 2024, at 8:00 a.m. (EDT)
Pre-registration link for dial-in access
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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
Forward-Looking Statements
This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact, including information concerning T-Mobile US, Inc.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “could” or similar expressions.
Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: competition, industry consolidation and changes in the market for wireless communications services and other forms of connectivity; criminal cyberattacks, disruption, data loss or other security breaches; our inability to take advantage of technological developments on a timely basis; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the impacts of the actions we have taken and conditions we have agreed to in connection with the regulatory proceedings and approvals of the Transactions (as defined below), including the acquisition by DISH Network Corporation (“DISH”) of the prepaid wireless business operated under the Boost Mobile and Sprint prepaid brands (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Personal Communications Company LLC and Swiftel Communications, Inc.), including customer accounts, inventory, contracts, intellectual property and certain other specified assets, and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment agreed to by us, Deutsche Telekom AG (“DT”), Sprint Corporation, now known as Sprint LLC (“Sprint”), SoftBank Group Corp. (“SoftBank”) and DISH with the
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)
This Press Release includes non-GAAP financial measures. The 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 the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. 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 and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income as the difference between either of these measures and Net income is variable.
Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:
|
Quarter |
|
Six Months Ended
|
||||||||||||||||||||||||||||
(in millions) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
2023 |
|
2024 |
||||||||||||||||
Net income |
$ |
1,940 |
|
|
$ |
2,221 |
|
|
$ |
2,142 |
|
|
$ |
2,014 |
|
|
$ |
2,374 |
|
|
$ |
2,925 |
|
|
$ |
4,161 |
|
|
$ |
5,299 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest expense, net |
|
835 |
|
|
|
861 |
|
|
|
790 |
|
|
|
849 |
|
|
|
880 |
|
|
|
854 |
|
|
|
1,696 |
|
|
|
1,734 |
|
Other (income) expense, net |
|
(9 |
) |
|
|
(6 |
) |
|
|
(41 |
) |
|
|
(12 |
) |
|
|
(20 |
) |
|
|
8 |
|
|
|
(15 |
) |
|
|
(12 |
) |
Income tax expense |
|
631 |
|
|
|
717 |
|
|
|
705 |
|
|
|
629 |
|
|
|
764 |
|
|
|
843 |
|
|
|
1,348 |
|
|
|
1,607 |
|
Operating income |
|
3,397 |
|
|
|
3,793 |
|
|
|
3,596 |
|
|
|
3,480 |
|
|
|
3,998 |
|
|
|
4,630 |
|
|
|
7,190 |
|
|
|
8,628 |
|
Depreciation and amortization |
|
3,203 |
|
|
|
3,110 |
|
|
|
3,187 |
|
|
|
3,318 |
|
|
|
3,371 |
|
|
|
3,248 |
|
|
|
6,313 |
|
|
|
6,619 |
|
Stock-based compensation (1) |
|
173 |
|
|
|
155 |
|
|
|
152 |
|
|
|
164 |
|
|
|
140 |
|
|
|
147 |
|
|
|
328 |
|
|
|
287 |
|
Merger-related costs (gain), net (2) |
|
358 |
|
|
|
276 |
|
|
|
152 |
|
|
|
248 |
|
|
|
130 |
|
|
|
(9 |
) |
|
|
634 |
|
|
|
121 |
|
Legal-related (recoveries) expenses, net (3) |
|
(43 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
15 |
|
|
|
(43 |
) |
|
|
15 |
|
(Gain) loss on disposal group held for sale |
|
(42 |
) |
|
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
Other, net (4) |
|
153 |
|
|
|
54 |
|
|
|
513 |
|
|
|
13 |
|
|
|
13 |
|
|
|
22 |
|
|
|
207 |
|
|
|
35 |
|
Adjusted EBITDA |
|
7,199 |
|
|
|
7,405 |
|
|
|
7,600 |
|
|
|
7,224 |
|
|
|
7,652 |
|
|
|
8,053 |
|
|
|
14,604 |
|
|
|
15,705 |
|
Lease revenues |
|
(147 |
) |
|
|
(69 |
) |
|
|
(53 |
) |
|
|
(43 |
) |
|
|
(35 |
) |
|
|
(26 |
) |
|
|
(216 |
) |
|
|
(61 |
) |
Core Adjusted EBITDA |
$ |
7,052 |
|
|
$ |
7,336 |
|
|
$ |
7,547 |
|
|
$ |
7,181 |
|
|
$ |
7,617 |
|
|
$ |
8,027 |
|
|
$ |
14,388 |
|
|
$ |
15,644 |
|
(1) |
Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the Condensed Consolidated Financial Statements. Additionally, certain stock-based compensation expenses associated with the Sprint Merger have been included in Merger-related costs (gain), net. |
|
(2) |
Merger-related costs (gain), net, for the three and six months ended June 30, 2024, includes the |
|
(3) |
Legal-related (recoveries) expenses, net consists of the settlement of certain litigation associated with the August 2021 cyberattack, net of insurance recoveries. |
|
(4) |
Other, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, including severance and related costs associated with the August 2023 workforce reduction, not directly attributable to the Merger, which are not reflective of T-Mobile’s core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA. |
Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization, stock-based compensation and certain expenses, gains and losses, which are not reflective of our ongoing operating performance (“Special Items”). Special Items include Merger-related costs (gain), net, (Gain) loss on disposal groups held for sale, certain legal-related recoveries and expenses, restructuring costs not directly attributable to the Merger (including severance), and other non-core gains and losses. Core Adjusted EBITDA represents Adjusted EBITDA less device lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management to monitor the financial performance of our operations. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Core Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and to facilitate comparisons with other wireless communications services companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, non-cash stock-based compensation, and Special Items. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of device lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for Net income or any other measure of financial performance reported in accordance with
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)
(Unaudited)
Adjusted Free Cash Flow is calculated as follows:
|
Quarter |
|
Six Months Ended
|
||||||||||||||||||||||||||||
(in millions, except percentages) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
2023 |
|
2024 |
||||||||||||||||
Net cash provided by operating activities |
$ |
4,051 |
|
|
$ |
4,355 |
|
|
$ |
5,294 |
|
|
$ |
4,859 |
|
|
$ |
5,084 |
|
|
$ |
5,521 |
|
|
$ |
8,406 |
|
|
$ |
10,605 |
|
Cash purchases of property and equipment, including capitalized interest |
|
(3,001 |
) |
|
|
(2,789 |
) |
|
|
(2,424 |
) |
|
|
(1,587 |
) |
|
|
(2,627 |
) |
|
|
(2,040 |
) |
|
|
(5,790 |
) |
|
|
(4,667 |
) |
Proceeds from sales of tower sites |
|
6 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
— |
|
Proceeds related to beneficial interests in securitization transactions |
|
1,345 |
|
|
|
1,309 |
|
|
|
1,131 |
|
|
|
1,031 |
|
|
|
890 |
|
|
|
958 |
|
|
|
2,654 |
|
|
|
1,848 |
|
Adjusted Free Cash Flow |
$ |
2,401 |
|
|
$ |
2,877 |
|
|
$ |
4,003 |
|
|
$ |
4,305 |
|
|
$ |
3,347 |
|
|
$ |
4,439 |
|
|
$ |
5,278 |
|
|
$ |
7,786 |
|
Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues) |
|
26.1 |
% |
|
|
27.7 |
% |
|
|
33.3 |
% |
|
|
30.3 |
% |
|
|
31.6 |
% |
|
|
33.6 |
% |
|
|
26.9 |
% |
|
|
32.6 |
% |
Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues) |
|
15.4 |
% |
|
|
18.3 |
% |
|
|
25.2 |
% |
|
|
26.8 |
% |
|
|
20.8 |
% |
|
|
27.0 |
% |
|
|
16.9 |
% |
|
|
23.9 |
% |
Adjusted Free Cash Flow - Net cash provided by operating activities less Cash purchases of property and equipment, plus Proceeds from sales of tower sites and Proceeds related to beneficial interests in securitization transactions. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to evaluate cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.
Adjusted Free Cash Flow margin - Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares and provide further investment in the business.
The current guidance range for Adjusted Free Cash Flow is calculated as follows:
|
FY 2024 |
||||||
(in millions) |
Guidance Range |
||||||
Net cash provided by operating activities |
$ |
21,800 |
|
|
$ |
22,200 |
|
Cash purchases of property and equipment, including capitalized interest |
|
(8,700 |
) |
|
|
(9,100 |
) |
Proceeds related to beneficial interests in securitization transactions (1) |
|
3,500 |
|
|
|
3,900 |
|
Adjusted Free Cash Flow |
$ |
16,600 |
|
|
$ |
17,000 |
|
(1) |
Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024. |
The previous guidance range for Adjusted Free Cash Flow was calculated as follows:
|
FY 2024 |
||||||
(in millions) |
Guidance Range |
||||||
Net cash provided by operating activities |
$ |
21,600 |
|
|
$ |
22,300 |
|
Cash purchases of property and equipment, including capitalized interest |
|
(8,600 |
) |
|
|
(9,400 |
) |
Proceeds related to beneficial interests in securitization transactions (1) |
|
3,400 |
|
|
|
4,000 |
|
Adjusted Free Cash Flow |
$ |
16,400 |
|
|
$ |
16,900 |
|
(1) |
Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2024. |
T-Mobile US, Inc.
Operating Measures
(Unaudited)
The following table sets forth company operating measures ARPA and ARPU:
|
Quarter |
|
Six Months Ended
|
||||||||||||||||||||
(in dollars) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
2023 |
|
2024 |
||||||||
Postpaid ARPA |
$ |
138.04 |
|
$ |
138.94 |
|
$ |
139.83 |
|
$ |
140.23 |
|
$ |
140.88 |
|
$ |
142.54 |
|
$ |
138.49 |
|
$ |
141.71 |
Postpaid phone ARPU |
|
48.63 |
|
|
48.84 |
|
|
48.93 |
|
|
48.91 |
|
|
48.79 |
|
|
49.07 |
|
|
48.73 |
|
|
48.93 |
Prepaid ARPU |
|
37.98 |
|
|
37.98 |
|
|
38.18 |
|
|
37.55 |
|
|
37.18 |
|
|
35.94 |
|
|
37.98 |
|
|
36.52 |
Postpaid Average Revenue Per Account (Postpaid ARPA) - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.
Average Revenue Per User (ARPU) - Average monthly service revenue earned per customer. Service revenues for the specified period divided by the average number of customers during the period, further divided by the number of months in the period.
Postpaid phone ARPU excludes postpaid other customers and related revenues.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240730162457/en/
Media Relations: mediarelations@t-mobile.com
Investor Relations: investor.relations@t-mobile.com
Source: T-Mobile US, Inc.
FAQ
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