T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q2 2024 Earnings Presentation
23 slides from T-mobile Us's earnings presentation, Jul 31, 2024
Slide 1: Investor Factbook Q2 2024
INVESTOR FACTBOOK Q2 2024
Slide 2: Footnotes and non-GAAP notes
(1) AT&T Inc. historically 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 ar
Slide 3: Postpaid ARPA & Postpaid Phone ARPU
■ ■ ■ ostpaid ARPA increased 3% primarily due to: ■ Higher premium services, primarily high-end rate plans, net of contra revenues for content included in such plans, and discounts for specific affinity groups (55+, military, and first responders) and partially offset by lower average device protect
Slide 4: Postpaid ARPA & Postpaid Phone ARPU chart
$142.54 giza94 $139.83 $140.23 STO.88 $48.84 $48.93 $48.91 $48.79 $49.07 e = o eo Postpaid ARPA —O— Postpaid Phone ARPU
Slide 5: Postpaid net customer additions
■ ■ tpaid phone net customer additions increased due to: ■ Higher gross additions Year-Over-Year Postpaid phone net customer additions increased primarily due to: Higher gross additions Partially offset by increased deactivations from a growing customer base and slightly higher churn Postpaid other
Slide 6: Postpaid phone churn
0.96% 0.87% 9 0.77% . oe 0.80%
Slide 7: Prepaid and High Speed Internet net customer additions
■ Higher gross additions following the acquisition of Ka’ena Corporation, including its subsidiary brands Mint Mobile and Ultra Mobile (the “Ka’ena Acquisition”) ■ Lower churn ■ Partially offset by continued moderation of prepaid industry growth ■ Lower seasonal churn ■ Higher gross additions follow
Slide 8: High Speed Internet net customer additions
Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 |_| Postpaid High Speed Internet net customer additions |_| Prepaid High Speed Internet net customer additions —O— High Speed Internet customers
Slide 9: Service revenues
primarily Year-Over-Year Service revenues increased 4% primarily due to: ■ Increase in Postpaid service revenues ■ An increase in Prepaid service revenues, driven by the impact of the Ka’ena Acquisition ■ Partially offset by a decrease in Wholesale and other service revenues driven primarily by lowe
Slide 10: Service revenues chart
$12,070 $12,288 $12,472 $12,631 $12,899
Slide 11: Equipment revenues
Equipment revenues decreased 2% : ■ A net decrease in the total number of devices sold, driven by lower Assurance Wireless, prepaid and postpaid upgrade units partially offset by higher postpaid gross addition related devices ■ Partially offset by a slightly higher average revenue per device sold, n
Slide 12: Cost of equipment sales
$5,608 $4,088 $4,249 $4,399 $4,088 131.9% 140.6% 135.8% 136.8% 132.7% OF e e =S: O Cost of Equipment sales, excl. D&A —O— % of Equipment sales, excl. D&A
Slide 13: Cost of services and SG&A expense
■ ■ ■ slightly ■ G&A expense decreased arily due to: ■ ■ ■ igher costs as the result SG&A expense was relatively flat primarily due to: ■ Higher costs as the result of the ■ Year-Over-Year Cost of services, exclusive of D&A, decreased 9% primarily due to: Lower Merger-related costs related to networ
Slide 14: SG&A expense chart
$5,272 $5,334 $5,280 $5,138 $5,142 32.6% 31.0% 32.2% 31.7% 31.6% e O e e SG&A expense, ex. Special Items II Merger-related costs (gain), net Other Special Items -O- % of Srvc revs, ex. Special Items
Slide 15: Diluted Earnings Per Share
Diluted Earnings Per Share (Diluted EPS)
Slide 16: Net income and diluted EPS
Net income was $2.9 billion and Diluted earnings per share was $2.49 in Q2 2024, compared to $2.2 billion and $1.86 in Q2 2023, primarily due to the factors described above and included the following, net of tax: ■ Merger-related costs of $207 million, or $0.17 per share, in Q2 2023 ■ Year-Over-Year
Slide 17: Core Adjusted EBITDA and operating cash flow
5% pri imarily due to: ■ Higher ■ 9% ■ Higher *Excludes Special Items (see detail on page 23) Year-Over-Year Core Adjusted EBITDA increased 9% primarily due to: ■ Higher Service revenues ■ Lower Cost of services, excluding Special Items Sequential Core Adjusted EBITDA increased marily due to: ■ High
Slide 18: Net cash provided by operating activities
$5,521 $5,294 Pee $5,084 $4,355
Slide 19: Capex and Adjusted Free Cash Flow
sh purchases of property and equipment, including capitalized interest, decreased 27% : ■ Increased capital efficiencies from accelerated investments in our nationwide 5G network build-out in previous years Cash purchases of property and equipment, including capitalized interest, decreased 22% prima
Slide 20: Adjusted Free Cash Flow chart
$4,305 $4,439 $4,003 $3,347 $2,877
Slide 21: Stockholder Returns
Stockholder Returns ($ in millions)
Slide 22: Stockholder return program
On September 6, 2023, the Board of Directors authorized a stockholder return program for up to $19.0 billion that will run through December 31, 2024, consisting of additional repurchases of shares and payment of cash dividends. ■ During Q2 2024, 14.0 million shares were repurchased for $2.3 billion.
Slide 23: Slide 23