T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q2 2023 Earnings Presentation
28 slides from T-mobile Us's earnings presentation, Jul 27, 2023
Slide 1: Exhibit 99.2
EXHIBIT 99.2
Slide 2: Table of contents
2 3 Highlights 4 Customer Metrics 7 Financial Metrics 13 Capital Structure 14 Merger & Integration 15 Guidance 16 Contacts 17 Financial and Operational Tables
Slide 3: Footnotes and non-GAAP notes
3 (1) AT&T Inc. historically does not disclose postpaid net account additions. Comcast and Charter do not disclose postpaid phone net additions. Industry leading claims are based on consensus expectations if results are not yet reported. (2) Core Adjusted EBITDA and Adjusted Free Cash Flow are non-G
Slide 4: Postpaid Accounts
4 Postpaid Accounts Year-Over-Year (in thousands) Continued growth in Postpaid net accounts with a decrease in net additions primarily due to: 28,813 29,112 ■ Continued moderation of industry growth 28,212 28,526 27,818 ■ Fewer High Speed Internet only net account additions 380 394 Sequential 314 28
Slide 5: Postpaid Customers
5 Postpaid Customers Year-Over-Year (in thousands) Postpaid phone net customer additions increased 92,232 93,525 95,086 primarily due to: 88,787 90,414 ■ Higher gross additions 1,818 ■ Lower churn 1,656 1,627 1,561 1,293 891 933 773 801 Postpaid other net customer additions decreased 755 primarily d
Slide 6: Prepaid Customers and High Speed Internet Customers
6 Prepaid Customers Year-Over-Year (in thousands) Prepaid net customer additions decreased primarily due to: 21,236 21,341 21,366 21,392 21,516 ■ Continued moderation of industry growth ■ Continued industry migration of prepaid to postpaid 146 124 105 Sequential Prepaid net customer additions increa
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 $15,738 ■ Partially offset by a decrease in Wholesale and other $15,361 $15,518 $15,546 service revenues, including the impact from the sale of $15,316 the Wireli
Slide 8: Equipment Revenues
8 Equipment Revenues Year-Over-Year ($ in millions) Equipment revenues decreased 23% primarily due to: ■ Lower lease revenues $4,451 ■ A lower number of devices sold primarily driven by $246 higher postpaid upgrades in the prior year related to $4,130 Sprint customers moving to devices that are comp
Slide 9: Cost of Services and SG&A
9 Cost of Services, exclusive of D&A Year-Over-Year ($ in millions, % of Service revenues) Cost of services, exclusive of D&A, decreased 28% primarily due to: $4,060 $3,712 ■ Lower Merger-related costs related to network $3,167 $3,061 decommissioning and integration $2,916 ■ Higher realized Merger s
Slide 10: Net Income (Loss)
10 Net Income (Loss) Year-Over-Year ($ in millions, % of Service revenues) Net income was $2.2 billion and Diluted earnings per share was $1.86 in Q2 2023, compared to Net loss of $2,221 $108 million and Diluted loss per share of $0.09 in Q2 $1,940 2022, primarily due to the factors described above
Slide 11: Core Adjusted EBITDA and Operating Cash Flow
11 Core Adjusted EBITDA* Year-Over-Year ($ in millions, % of Service revenues) Core Adjusted EBITDA increased 11% primarily due to: ■ Lower Cost of equipment sales, excluding Merger- $7,336 $7,052 related costs $6,618 $6,728 $6,582 ■ Higher Service revenues ■ Lower Cost of services, excluding Merger
Slide 12: Cash Purchases of Property and Equipment and Adjusted Free Cash Flow
12 Cash Purchases of Property and Year-Over-Year Equipment, incl. Capitalized Interest Cash purchases of property and equipment, including ($ in millions, % of Service revenues) capitalized interest, decreased 22% primarily due to: ■ Increased capital efficiency following our accelerated nationwide
Slide 13: Net Debt and Capital Structure
13 Total debt, excluding tower obligations, at the end of Q2 Net Debt (Excluding Tower 2023 was $80.3 billion. Obligations) & Net Debt to LTM Net Net debt, excluding tower obligations, at the end of Q2 Income and Core Adj. EBITDA 2023 was $73.7 billion. Ratios ($ in billions) ■ On September 8, 2022,
Slide 14: Merger-Related Synergies Guidance and Costs
14 Merger-Related Synergies Guidance Merger synergies are expected to be approximately $7.5 billion in 2023: ▪ Approximately $2.7 billion of SG&A expense reductions ▪ Approximately $3.2 billion of cost of service expense reductions achieved through network efficiencies ▪ Approximately $1.6 billion o
Slide 15: 2023 Outlook
15 2023 Outlook Metric Previous Revised Change at Midpoint Postpaid net customer additions 5.3 to 5.7 million 5.6 to 5.9 million 250 thousand Net income (1) N/A N/A N/A Core Adjusted EBITDA (2) $28.8 to $29.2 billion $28.9 to $29.2 billion $50 million Merger synergies $7.3 to $7.5 billion ~$7.5 bill
Slide 16: Investor Relations
16 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 17: Condensed Consolidated Balance Sheets
17 T-Mobile US, Inc. Condensed Consolidated Balance Sheets (Unaudited) June 30, December 31, (in millions, except share and per share amounts) 2023 2022 Assets Current assets Cash and cash equivalents $ 6,647 $ 4,507 Accounts receivable, net of allowance for credit losses of $151 and $167 4,592 4,44
Slide 18: Condensed Consolidated Statements of Comprehensive Income
18 T-Mobile US, Inc. Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, (in millions, except share and per share amounts) 2023 2023 2022 2023 2022 Revenues Postpaid revenues $ 12,070 $ 11,862 $ 11,445
Slide 19: Condensed Consolidated Statements of Cash Flows
19 T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Unaudited) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, (in millions) 2023 2023 2022 2023 2022 Operating activities Net income (loss) $ 2,221 $ 1,940 $ (108) $ 4,161 $ 605 Adjustments to reconcile net i
Slide 20: Statements of Cash Flows (Continued)
20 T-Mobile US, Inc. Condensed Consolidated Statements of Cash Flows (Continued) (Unaudited) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, (in millions) 2023 2023 2022 2023 2022 Supplemental disclosure of cash flow information Interest payments, net of amounts capitalized
Slide 21: Supplementary Operating and Financial Data
21 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Six Months Ended Quarter June 30, (in thousands) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2022 2023 Customers, end of period Postpaid phone customers (1) 70,656 71,053 71,907 72,834 73,372 74,132 71,053 74,132 Postpai
Slide 22: Supplementary Operating and Financial Data
22 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Six Months Ended Quarter June 30, (in thousands) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2022 2023 Accounts, end of period Total postpaid customer accounts (1) 27,507 27,818 28,212 28,526 28,813 29,112 27,818 29,112
Slide 23: Supplementary Operating and Financial Data (continued)
23 T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) (Unaudited) Six Months Ended Quarter June 30, (in millions, except percentages) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 2022 2023 Financial Measures Service revenues $15,128 $15,316 $15,361 $15,518 $15,546 $15,738 $3
Slide 24: Reconciliation of Non-GAAP Financial Measures to GAAP
24 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 25: Reconciliation of Non-GAAP Financial Measures (continued)
25 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 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 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 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.’