Industry-Leading Postpaid and Broadband Customer Growth(1)
Postpaid net account additions of 287 thousand, best in industry
Postpaid net customer additions of 1.3 million, more than AT&T and Verizon combined and raising guidance
Postpaid phone net customer additions of 538 thousand, higher share of industry net adds year-over-year
Postpaid phone churn of 0.89%, only operator to improve year-over-year
High Speed Internet net customer additions of 523 thousand, more than AT&T, Verizon, Comcast and Charter combined for the 4th consecutive quarter
Differentiated Growth Strategy with Disciplined Focus on Profitability
Service revenues of $15.5 billion grew an industry-leading 3% year-over-year, including industry-leading Postpaid service revenue growth of 6% year-over-year
Net income of $1.9 billion grew 172% year-over-year and diluted earnings per share (“EPS”) of $1.58 grew 177% year-over-year, best in industry growth
Core Adjusted EBITDA(2) of $7.1 billion grew 9% year-over-year, best in industry growth and raising guidance
Net cash provided by operating activities of $4.1 billion grew 5% year-over-year, higher margins year-over-year and raising guidance
Adjusted Free Cash Flow(2) of $2.4 billion grew 46% year-over-year, best in industry margins and raising guidance
Repurchased 33.0 million shares of common stock in Q1 2023 for $4.8 billion
T-Mobile Reigns as Nationwide Overall Network Leader and Largest, Fastest and Most-Awarded 5G Network
Clean sweep across every category for overall network performance for the second quarter in a row from Ookla and continued wins across 5G network categories from Ookla and umlaut
5G network covers 98% of Americans and Ultra-Capacity 5G covers 275 million people
Bellevue, WA — April 27, 2023 — T-Mobile US, Inc. (NASDAQ: TMUS) reported first quarter 2023 results today, raising 2023 guidance while translating its disciplined approach to profitable growth into industry-leading growth in both customers and profitability. The company is celebrating 10 years of Un-carrier moves and three years since the merger with Sprint by continuing its commitment to eliminate customer pain points while leading the industry in overall network experience. In its latest Un-carrier move, T-Mobile is delivering Phone Freedom by giving Carrier customers the flexibility to break free from ever-expanding device contracts, while providing even more value with the new Go5G Plus rate plan.
"T-Mobile’s focused execution against our intentional growth plan delivered best-in-class postpaid and broadband customer and profitability growth in Q1 that gave us confidence to raise our 2023 guidance for customers and profitability,” said T-Mobile CEO Mike Sievert. “For more than ten years, the Un-carrier has put customers first and we will continue to do just that. Our unique ability to offer the best network and best value, coupled with moves like Phone Freedom and our new Go5G plans, will only continue to fuel our profitable future growth in this competitive environment."
Industry-Leading Postpaid and Broadband Customer Growth(1)
Postpaid net account additions of 287 thousand decreased 61 thousand year-over-year, reflecting continued industry-leading share of net account additions in an environment of industry growth normalization toward pre-pandemic levels.
Postpaid net customer additions of 1.3 million decreased 25 thousand year-over-year, reflecting continued normalization of industry growth.
Postpaid phone net customer additions of 538 thousand decreased 51 thousand year-over-year while reflecting a higher share of industry net additions. Postpaid phone churn of 0.89% improved 4 bps year-over-year.
Prepaid net customer additions of 26 thousand decreased 36 thousand year-over-year, and Prepaid churn was 2.76%.
High Speed Internet net customer additions of 523 thousand increased 185 thousand year-over-year. T-Mobile ended the quarter with 3.2 million High Speed Internet customers.
Total net customer additions of 1.3 million decreased 61 thousand year-over-year. The total customer count increased to a record high of 114.9 million.
Differentiated Growth Strategy with Disciplined Focus on Profitability
Total service revenues increased 3% year-over-year to $15.5 billion, which included Postpaid service revenue growth of 6% year-over-year.
Net income increased 172% year-over-year to $1.9 billion, which included lower merger-related costs, net of tax, of $268 million. Diluted EPS increased 177% year-over-year to $1.58 per share.
Core Adjusted EBITDA increased 9% year-over-year to $7.1 billion, primarily due to Service revenue growth and increased synergy realization.
Net cash provided by operating activities increased 5% year-over-year to $4.1 billion, which included cash payments for merger-related costs of $484 million.
Cash purchases of property and equipment, including capitalized interest, decreased 11% year-over-year to $3.0 billion driven by increased capital efficiencies from accelerated investments in the nationwide 5G network in 2022.
Adjusted Free Cash Flow increased 46% year-over-year to $2.4 billion, which included cash payments for merger-related costs of $484 million.
Common stock repurchases of 33.0 million shares for $4.8 billion in Q1 2023. As of April 21, 2023, the cumulative total repurchased was 59.4 million shares for $8.5 billion with remaining authorization of up to $5.5 billion through the end of September 2023.
T-Mobile Reigns as Nationwide Overall Network Leader and Largest, Fastest and Most-Awarded 5G Network
T-Mobile’s 5G network covers 326 million people with more geographic coverage than AT&T and Verizon combined. 275 million people nationwide are covered by T-Mobile’s super-fast Ultra Capacity 5G, and the Un-carrier plans to reach 300 million people with Ultra Capacity this year – nearly everyone in the country.
T-Mobile’s 5G leadership has translated into overall network leadership while 5G is increasingly becoming the overall network experience for customers. The Un-carrier continues its third-party report winning streak for overall network and 5G:
Ookla: In its latest Speedtest Global Index Market Analysis, T-Mobile repeated wins in every single category for overall network performance for the second consecutive quarter. T-Mobile’s network once again earned the top ranking for fastest speeds, most consistent, best video, lowest latency, best 5G performance and 5G availability.
umlaut: In its latest 5G Network Performance Audit Report, T-Mobile received top honors with the overall highest 5G score and was once again named as the most reliable 5G network in the country with the best 5G coverage, stability, and speeds.
Raising 2023 Guidance
Postpaid net customer additions are expected to be between 5.3 million and 5.7 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 $28.8 billion and $29.2 billion, an increase from prior guidance of $28.7 billion to $29.2 billion.
Merger synergies are expected to be between $7.3 billion and $7.5 billion, an increase from prior guidance of $7.2 billion to $7.5 billion.
Merger-related costs are expected to be approximately $1.0 billion before taxes. These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided by operating activities and Adjusted Free Cash Flow.
Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $17.9 billion and $18.3 billion, an increase from prior guidance of $17.8 billion to $18.3 billion.
Cash purchases of property and equipment, including capitalized interest, are expected to be between $9.4 billion and $9.7 billion.
Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $13.2 billion and $13.6 billion, an increase from prior guidance of $13.1 billion to $13.6 billion. Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization.
Doing Good — The Un-carrier Way — Industry Leader in Building a More Connected and Sustainable Future
T-Mobile continues to stay true to its commitment to use its network, scale and resources for good, building a more connected, equitable and sustainable future:
T-Mobile earned an A- (leadership level) on the 2022 CDP Climate Change assessment. The company also earned a place on the 2022 Supplier Engagement Leaderboard with an A rating, landing among the top 8% of companies assessed for supplier engagement around climate change.
The Un-carrier continued to lead the U.S. wireless industry in renewable energy use. T-Mobile sourced 100% of its purchased electricity from renewable energy in 2022.(1)
T-Mobile made progress on the DE&I Promises in its Equity In Action Plan, achieving over half of the Promises by the end of 2022 and remaining on track to achieve the remaining Promises by 2025.
T-Mobile launched the fifth Changemaker Challenge, a nationwide contest that gives young leaders an opportunity to turn their innovative ideas into solutions that create a more inclusive, equitable and sustainable future.