Un-carrier Celebrates Two-Year Merger Anniversary with Highest Postpaid Service Revenue and Cash Flow Growth in the Industry and Raises Guidance Across the Board
Industry-Leading Growth in Postpaid and Broadband Customers(1)
- Postpaid net account additions of 348 thousand, best in industry and record Q1
- Postpaid net customer additions of 1.3 million, best in industry and highest Q1 in eight years
- Postpaid phone net customer additions of 589 thousand, including best churn improvement in industry
- High Speed Internet net customer additions of 338 thousand, best in industry and record high
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Strong Financial Results Drive 2022 Guidance Raise Across the Board
- Service revenues of $15.1 billion grew 7% year-over-year including industry-leading Postpaid service revenue growth of 9%
- Strong Net income of $713 million and diluted earnings per share (“EPS”) of $0.57
- Core Adjusted EBITDA(2) of $6.5 billion grew 10% year-over-year, best growth in industry and raising guidance
- Net cash provided by operating activities of $3.8 billion grew 5% year-over-year, best growth in industry and raising guidance
- Free Cash Flow(2) of $1.6 billion grew 26% year-over-year, best growth in industry and raising guidance
- Raising merger synergies guidance range to $5.2 to $5.4 billion in 2022
Unprecedented Pace of Network Build Extends 5G Leadership and Delivers on Accelerated Integration
- Extended Range 5G covers 315 million people, or 95% of Americans
- Ultra Capacity 5G covers 225 million people and nearly 85% of T-Mobile customers
- Approximately 45% of postpaid customers are now using a 5G phone, and 5G devices account for more than half of total network traffic
- On track to complete Sprint customer network migration mid-year and decommissioning by end of year
T-Mobile US, Inc. reported first quarter 2022 results today, delivering industry-leading growth in postpaid and broadband customers driven by its unparalleled 5G network and best value combination. T-Mobile had the highest postpaid service revenue and cash flow growth in the industry enabled by its synergy-backed model and diverse growth strategy and raises full-year 2022 guidance across the board.
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“T-Mobile continues to be the growth leader in this industry, with another beat and raise quarter that delivered front-of-the-pack postpaid, new account, and broadband customer results,” said Mike Sievert, CEO of T-Mobile. “Only the Un-carrier’s unparalleled network leadership in the 5G era has enabled us to give customers the best network and best value without compromise, and effectively solve one of the most prevalent pain points in the wireless industry. And we are accomplishing this while advancing our integration and delivering bigger synergies faster than expected. I’m excited to carry our momentum forward through the rest of the year.”
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| (1) | AT&T Inc. historically does not disclose postpaid net account additions. Industry-leading claims based on consensus expectations if results not yet reported. | |
| (2) | Core 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 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 either of the two measures and Net income is variable. |
Industry-Leading Growth in Postpaid and Broadband Customers
- Postpaid net account additions of 348 thousand increased 91 thousand year-over-year.
- Postpaid net customer additions of 1.3 million increased 108 thousand year-over-year.
- Postpaid phone net customer additions of 589 thousand including industry-leading postpaid phone gross additions. Postpaid phone churn was 0.93%, which improved an industry-leading 5 basis points year-over-year and 17 basis points sequentially.
- Prepaid net customer additions were 62 thousand. Prepaid churn was 2.67% in Q1 2022, which improved by 11 basis points year-over-year.
- High Speed Internet net customer additions of 338 thousand increased more than 3x year-over-year. T-Mobile ended the quarter with 984 thousand High Speed Internet customers and currently serves more than 1 million customers.
- Total net customer additions of 1.4 million increased 19 thousand year-over-year and the total customer count increased to a record-high of 109.5 million.
Strong Financial Results
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- Total service revenues increased 7% year-over-year to $15.1 billion, which included Postpaid service revenue growth of 9% year-over-year driven by continued customer account and ARPA growth.
- Net income decreased year-over-year to $713 million and Diluted earnings per share (“EPS”) decreased year-over-year to $0.57, which included merger-related costs, net of tax, of $1.1 billion or $0.84 per share.
- Core Adjusted EBITDA increased 10% year-over-year to $6.5 billion due to Service revenue growth and increased synergy realization.
- Net cash provided by operating activities increased 5% year-over-year to $3.8 billion, which included cash payments for merger-related costs of $893 million.
- Cash purchases of property and equipment, including capitalized interest increased 6% year-over-year to $3.4 billion driven by the accelerated build-out of its nationwide 5G network.
- Free Cash Flow increased 26% year-over-year to $1.6 billion, which included cash payments for merger-related costs of $893 million and cash purchases of property and equipment of $3.4 billion.
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