T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q3 2024 Earnings Presentation
23 slides from T-mobile Us's earnings presentation, Oct 23, 2024
Slide 1: Investor Factbook Q3 2024
INVESTOR FACTBOOK Q3 2024
Slide 2: Notes on industry claims and non-GAAP measures
(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 4% 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) ■ An increase in customers per account, including co
Slide 4: Postpaid ARPA and Postpaid Phone ARPU chart
$145.60 $139.83 $140.23 $140.88 visas $48.93 $48.91 $48.79 $49.07 $49.79 e e Postpaid ARPA —O— Postpaid Phone ARPU
Slide 5: Postpaid net customer additions
tpaid phone net customer additions increased primarily due to: ■ Higher prepaid to postpaid migrations ■ Lower churn ■ ■ tpaid phone net customer additions increased due to: ■ Seasonally higher gross additions Year-Over-Year Pos Higher gross additions Partially offset by increased deactivations from
Slide 6: Postpaid churn chart
0.96% 0.87% 9 9 o 0.86% 0.80% 0.86%
Slide 7: Prepaid and High Speed Internet net customer additions
During Q2 2024, we acquired 3.5 million prepaid customers, net of certain base adjustments, through the acquisition of Mint Mobile and Ultra Mobile. ■ Continued moderation of prepaid industry growth ■ Higher prepaid to postpaid migrations ■ Lower net additions from High Speed Internet ■ Partially of
Slide 8: High Speed Internet net customer additions chart
Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 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 5% primarily due to: ■ Increase in Postpaid service revenues ■ An increase in Prepaid service revenues, primarily driven by the impact of the acquisition of Mint Mobile and Ultra Mobile ■ Partially offset by a decrease in Wholesale and other servic
Slide 10: Service revenues chart
12,899 ots.o08 $12,288 $12,472 $12,631 $12,
Slide 11: Equipment revenues
Equipment revenues increased 4% : ■ A higher average revenue per device sold, net of promotions, primarily driven by an increase in the high-end phone mix ■ Higher liquidation revenue primarily due to a higher number of in-house liquidated devices, including the impact from the transition of certain
Slide 12: Cost of equipment sales
$5,608 $4,249 $4,399 g4ogg $4,307 140.6% 135.8% 136.8% 132.7% 135.2% OS eo Cost of Equipment sales, excl. D&A —O— % of Equipment sales, excl. D&A
Slide 13: Cost of services and SG&A expense
■ ■ ■ ■ G&A expense decreased arily due to: ■ ■ ■ igher costs as the result of the acquisition of Mint Mobile and Ultra Mobile SG&A expense increased slightly primarily due to: ■ Year-Over-Year Cost of services, exclusive of D&A, decreased 6% primarily due to: Prior year severance and related costs
Slide 14: SG&A expense, excluding Special Items
$5,334 $5,280 ¢5.438 $5,142 31.0% 32.2% 31.7% 31.6% $5,186 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 $3.1 billion and Diluted earnings per share was $2.61 in Q3 2024, compared to $2.1 billion and $1.82 in Q3 2023, primarily due to the factors described above and included the following, net of tax: ■ Merger-related costs of $114 million, or $0.10 per share, in Q3 2023 ■ Severance and
Slide 17: Core Adjusted EBITDA and operating cash flow
2% pri imarily due to: ■ Higher ■ 11% ■ Higher *Excludes Special Items (see detail on page 23) Year-Over-Year Core Adjusted EBITDA increased 9% primarily due to: ■ Higher Service revenues ■ Higher Equipment revenues, excluding Lease revenues ■ Partially offset by higher SG&A expenses, excluding Spec
Slide 18: Net cash provided by operating activities chart
$6,139 5,294 Z $5,29 $4,859 $5,084 $5,521
Slide 19: Cash capex and Adjusted Free Cash Flow
sh purchases of property and equipment, including capitalized interest, decreased 19% : ■ 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 4% primar
Slide 20: Adjusted Free Cash Flow chart
$5,162 $4,305 $4,439 $4,003 $3,347
Slide 21: Stockholder Returns
Stockholder Returns ($ in millions)
Slide 22: Stockholder return program and debt
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 Q3 2024, 3.2 million shares were repurchased for $644 million.
Slide 23: Slide 23