T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q4 2023 Earnings Presentation
27 slides from T-mobile Us's earnings presentation, Jan 25, 2024
Slide 1: Exhibit 99.2
EXHIBIT 99.2
Slide 2: Highlights, Customer Metrics, Financial Metrics, Capital Structure, Guidance
2 3 Highlights 4 Customer Metrics 7 Financial Metrics 13 Capital Structure 14 Guidance 15 Contacts 16 Financial and Operational Tables
Slide 3: Q4 2023 highlights and footnotes
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 net accounts with relatively flat net additions 29,498 29,797 28,813 29,112 28,526 Sequential 386 Continued growth in Postpaid net accounts with a 314 287 299 299 decrease in net additions primarily due to: ■ Focus on dee
Slide 5: Postpaid Customers
5 Postpaid Customers Year-Over-Year (in thousands) Postpaid phone net customer additions were relatively 96,312 98,052 flat primarily due to: 92,232 93,525 95,086 ■ Higher gross additions 1,818 ■ Mostly offset by increased deactivations from a growing 1,561 1,570 customer base and higher churn 1,293
Slide 6: Prepaid Customers and High Speed Internet Customers
6 Prepaid Customers Year-Over-Year (in thousands) Prepaid net customer additions increased primarily due to: 21,366 21,392 21,516 21,595 21,648 ■ Lower churn 124 Sequential 79 Prepaid net customer additions decreased primarily due 53 to: 25 26 ■ Seasonally higher churn ■ Partially offset by seasonal
Slide 7: Service Revenues and Postpaid Service Revenues
7 Service Revenues Year-Over-Year ($ in millions) Service revenues increased 3% primarily due to: ■ Increase in Postpaid service revenues $15,914 $16,043 ■ Partially offset by a decrease in Wholesale and other $15,738 $15,518 $15,546 service revenues, including the impact from the sale of the Wireli
Slide 8: Equipment Revenues
8 Equipment Revenues Year-Over-Year ($ in millions) Equipment revenues decreased 6% primarily due to: $4,451 ■ Lower lease revenues $246 $4,174 ■ A lower net number of devices and accessories sold due $43 to lower postpaid upgrades driven by longer device $4,205 $4,131 lifecycles, as well as lower s
Slide 9: Cost of Services and SG&A Expense
9 Cost of Services, exclusive of D&A Year-Over-Year ($ in millions, % of Service revenues) Cost of services, exclusive of D&A, decreased 12% primarily due to: $3,167 $3,061 ■ Lower costs due to the sale of the Wireline Business $2,916 $2,886 $2,792 ■ Higher realized Merger synergies ■ Lower Merger-r
Slide 10: Net Income and Diluted Earnings Per Share
10 Net Income Year-Over-Year ($ in millions, % of Service revenues) Net income was $2.0 billion and Diluted earnings per share was $1.67 in Q4 2023, compared to $1.5 billion and $1.18 in Q4 2022, primarily due to the factors described $2,221 above and included the following, net of tax: $2,142 $1,94
Slide 11: Core Adjusted EBITDA
11 Core Adjusted EBITDA* Year-Over-Year ($ in millions, % of Service revenues) Core Adjusted EBITDA increased 9% primarily due to: ■ Higher Service revenues $7,336 $7,547 ■ Lower Cost of services, excluding Merger-related costs $7,052 $7,181 $6,582 and other special items ■ Lower SG&A expense, exclu
Slide 12: Cash Purchases of Property and Equipment; Adjusted Free Cash Flow
12 Cash Purchases of Property and Year-Over-Year Equipment, incl. Capitalized Interest Cash purchases of property and equipment, including ($ in millions, % of Service revenues) capitalized interest, decreased 53% primarily due to: ■ Increased capital efficiency following the company’s accelerated n
Slide 13: Net Debt and Net Debt Ratios
13 Total debt, excluding tower obligations, at the end of Q4 Net Debt (Excluding Tower 2023 was $77.5 billion. Obligations) & Net Debt to LTM Net Net debt, excluding tower obligations, at the end of Q4 Income and Core Adj. EBITDA 2023 was $72.4 billion. Ratios ($ in billions) ■ On September 8, 2022,
Slide 14: 2024 Outlook
14 2024 Outlook Postpaid net customer additions 5.0 to 5.5 million Net income (1) N/A Effective tax rate 24% to 26% Core Adjusted EBITDA (2) $31.3 to $31.9 billion Net cash provided by operating activities $21.5 to $22.3 billion Capital expenditures (3) $8.6 to $9.4 billion Adjusted Free Cash Flow (
Slide 15: Investor Relations
15 Investor Relations Jud Henry 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: Consolidated Balance Sheets
16 T-Mobile US, Inc. Consolidated Balance Sheets (Unaudited) December 31, December 31, (in millions, except share and per share amounts) 2023 2022 Assets Current assets Cash and cash equivalents $ 5,135 $ 4,507 Accounts receivable, net of allowance for credit losses of $161 and $167 4,692 4,445 Equi
Slide 17: Consolidated Statements of Comprehensive Income
17 T-Mobile US, Inc. Consolidated Statements of Comprehensive Income (Unaudited) Three Months Ended Year Ended December 31, December 31, September 30, December 31, (in millions, except share and per share amounts) 2023 2023 2022 2023 2022 Revenues Postpaid revenues $ 12,472 $ 12,288 $ 11,725 $ 48,69
Slide 18: Consolidated Statements of Cash Flows
18 T-Mobile US, Inc. Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Year Ended December 31, December 31, September 30, December 31, (in millions) 2023 2023 2022 2023 2022 Operating activities Net income $ 2,014 $ 2,142 $ 1,477 $ 8,317 $ 2,590 Adjustments to reconcile net income
Slide 19: Consolidated Statements of Cash Flows (Continued)
19 T-Mobile US, Inc. Consolidated Statements of Cash Flows (Continued) (Unaudited) Three Months Ended Year Ended December 31, December 31, September 30, December 31, (in millions) 2023 2023 2022 2023 2022 Supplemental disclosure of cash flow information Interest payments, net of amounts capitalized
Slide 20: Supplementary Operating and Financial Data
20 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Year Ended Quarter December 31, (in thousands) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Customers, end of period Postpaid phone customers (1) 70,656 71,053 71,907 72,834 73,372 74,132 74,982
Slide 21: Supplementary Operating and Financial Data
21 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Year Ended Quarter December 31, (in thousands) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Accounts, end of period Total postpaid customer accounts (1) 27,507 27,818 28,212 28,526 28,813 29,112
Slide 22: Supplementary Operating and Financial Data (continued)
22 T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) (Unaudited) Year Ended Quarter December 31, (in millions, except percentages) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 2022 2023 Financial measures Service revenues $15,128 $15,316 $15,361 $15,518 $15,
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 Financial 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: Definitions of Terms
25 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 26: Definitions of Terms (continued)
26 12. Adjusted Free Cash Flow margin - Adjusted Free Cash Flow margin is calculated as Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue effic
Slide 27: Cautionary Statement Regarding Forward-Looking Statements
27 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.’