T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q3 2024 Earnings Presentation
28 slides from T-mobile Us's earnings presentation, Oct 23, 2024
Slide 1: Exhibit 99.2
EXHIBIT 99.2
Slide 2: Contents
2 3 Highlights 4 Customer Metrics 7 Financial Metrics 13 Capital Structure 14 Guidance 15 Contacts 16 Financial and Operational Tables
Slide 3: Highlights
3 (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
Slide 4: Postpaid Accounts
4 Postpaid Accounts Year-Over-Year (in thousands) Continued growth in Postpaid accounts with a decrease in net additions primarily due to: 30,316 30,631 ■ Fewer High Speed Internet only additions due to the 29,797 30,015 29,498 sunsetting of promotional pricing 386 299 301 315 Sequential 218 Continu
Slide 5: Postpaid Customers
5 Postpaid Customers Year-Over-Year (in thousands) Postpaid phone net customer additions increased primarily due to: 98,052 99,272 100,610 102,185 96,312 ■ Higher prepaid to postpaid migrations ■ Lower churn 1,570 1,575 ■ Higher gross additions 1,226 1,220 1,338 ■ Partially offset by increased deact
Slide 6: Prepaid Customers
6 Prepaid Customers Year-Over-Year (in thousands) Prepaid net customer additions decreased primarily due to: 25,283 25,307 ■ Continued moderation of prepaid industry growth 21,648 ■ Higher prepaid to postpaid migrations 21,595 21,600 ■ Lower net additions from High Speed Internet 179 ■ Partially off
Slide 7: Service Revenues
7 Service Revenues Year-Over-Year ($ in millions) Service revenues increased 5% primarily due to: ■ Increase in Postpaid service revenues $16,725 ■ An increase in Prepaid service revenues, primarily $16,429 $16,043 $16,096 driven by the impact of the acquisition of Mint Mobile and $15,914 Ultra Mobi
Slide 8: Equipment Revenues
8 Equipment Revenues Year-Over-Year ($ in millions) Equipment revenues increased 4% primarily due to: ■ A higher average revenue per device sold, net of $4,174 promotions, primarily driven by an increase in the high- $4,131 end phone mix $3,076 $3,251 $3,106 $3,207 ■ Higher liquidation revenue prima
Slide 9: Cost of Services and SG&A
9 Cost of Services, exclusive of D&A Year-Over-Year ($ in millions, % of Service revenues) Cost of services, exclusive of D&A, decreased 6% primarily due to: $2,886 ■ Prior year severance and related costs of $140 million $2,792 $2,688 $2,664 $2,722 ■ Prior year Merger-related costs related to netwo
Slide 10: Net Income and Diluted EPS
10 Net Income Year-Over-Year ($ in millions, % of Service revenues) 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 $3,059 above and included the following, net of tax: $2,925 ■ Mer
Slide 11: Core Adjusted EBITDA and Operating Cash Flow
11 Core Adjusted EBITDA* Year-Over-Year ($ in millions, % of Service revenues) Core Adjusted EBITDA increased 9% primarily due to: ■ Higher Service revenues $8,027 $8,222 ■ Higher Equipment revenues, excluding Lease revenues $7,547 $7,617 $7,181 ■ Partially offset by higher SG&A expenses, excluding
Slide 12: Cash Capex and Adjusted Free Cash Flow
12 Cash Purchases of Property and Year-Over-Year Equipment, incl. Capitalized Interest Cash purchases of property and equipment, including ($ in millions, % of Service revenues) capitalized interest, decreased 19% primarily due to: ■ Increased capital efficiencies from accelerated investments in our
Slide 13: Net Debt and Capital Structure
13 Total debt, excluding tower obligations, at the end of Q3 Net Debt (Excluding Tower 2024 was $82.3 billion. Obligations) & Net Debt to LTM Net Net debt, excluding tower obligations, at the end of Q3 Income and Core Adj. EBITDA 2024 was $72.6 billion. Ratios ($ in billions) ■ On September 6, 2023,
Slide 14: 2024 Outlook
14 2024 Outlook Metric Previous Revised Change at Midpoint Postpaid net customer additions 5.4 to 5.7 million 5.6 to 5.8 million 150 thousand Net income (1) N/A N/A N/A Effective tax rate 24% to 25% ~24% (50) bps Core Adjusted EBITDA (2) $31.5 to $31.8 billion $31.6 to $31.8 billion $50 million Net
Slide 15: Investor Relations
15 Investor Relations Cathy Yao Justin Taiber Rob Brust Senior Vice President Senior Director Senior Director Investor Relations Investor Relations Investor Relations Zach Witterstaetter Rose Kopecky Jacob Marks Investor Relations Investor Relations Investor Relations Manager Manager Manager investo
Slide 16: Condensed Consolidated Balance Sheets
16 T-Mobile US, Inc. Condensed Consolidated Balance Sheets (Unaudited) September 30, December 31, (in millions, except share and per share amounts) 2024 2023 Assets Current assets Cash and cash equivalents $ 9,754 $ 5,135 Accounts receivable, net of allowance for credit losses of $162 and $161 4,286
Slide 17: Condensed Consolidated Statements of Comprehensive Income
17 T-Mobile US, Inc. Condensed Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, June 30, September 30, (in millions, except share and per share amounts) 2024 2024 2023 2024 2023 Revenues Postpaid revenues $ 13,308 $ 12,899 $
Slide 18: Condensed Consolidated Statements of Cash Flows
18 T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, June 30, September 30, (in millions) 2024 2024 2023 2024 2023 Operating activities Net income $ 3,059 $ 2,925 $ 2,142 $ 8,358 $ 6,303 Adjustments to recon
Slide 19: Statements of Cash Flows (Continued)
19 T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Continued) (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, June 30, September 30, (in millions) 2024 2024 2023 2024 2023 Supplemental disclosure of cash flow information Interest payments, net of amoun
Slide 20: Supplementary Operating and Financial Data
20 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Nine Months Ended Quarter September 30, (in thousands) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2023 2024 Customers, end of period Postpaid phone customers (1) 73,372 74,132 74,982 75,936 76,468 77,245 78,110
Slide 21: Supplementary Operating and Financial Data
21 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Nine Months Ended Quarter September 30, (in thousands) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2023 2024 Accounts, end of period Total postpaid customer accounts 28,813 29,112 29,498 29,797 30,015 30,316 30,6
Slide 22: Supplementary Operating and Financial Data (continued)
22 T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) (Unaudited) Nine Months Ended Quarter September 30, (in millions, except percentages) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 2023 2024 Financial measures Service revenues $15,546 $15,738 $15,914 $16,043 $16,
Slide 23: Reconciliation of Non-GAAP Financial Measures to GAAP
23 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (Unaudited) This Investor Factbook 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 accorda
Slide 24: Reconciliation of Non-GAAP Measures (continued)
24 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Net debt (excluding tower obligations) to the LTM Net income, LTM Adjusted EBITDA and LTM Core Adjusted EBITDA ratios are calculated as follows: Mar 31, Jun 30, Sep 30, Dec 31, Mar 3
Slide 25: Adjusted Free Cash Flow Guidance Reconciliation
25 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) 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 $ 22,000 $ 22,300 Cash
Slide 26: Definitions of Terms
26 Definitions of Terms Operating and financial measures are utilized by T-Mobile’s management to evaluate its operating performance and, in certain cases, its ability to meet liquidity requirements. Although companies in the wireless industry may not define measures in precisely the same way, T-Mob
Slide 27: Definitions of Terms (continued)
27 13. Net debt - Short-term debt, short-term debt to affiliates, long-term debt (excluding tower obligations), and long-term debt to affiliates, short- term financing lease liabilities and financing lease liabilities, less cash and cash equivalents. 14. Merger-related costs include: • Integration c
Slide 28: Cautionary Statement Regarding Forward-Looking Statements
28 Cautionary Statement Regarding 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.’