T-mobile Us, Inc. · NASDAQ:TMUS

T-mobile Us — Q2 2013 Earnings Presentation

17 slides from T-mobile Us's earnings presentation, Aug 8, 2013

  1. Slide 1: T-Mobile US Q2 2013

    T - Mobile- T-Mobile US Q2 2013

  2. Slide 2: Disclaimer

    Disclaimer This presentation contains “forward-looking” statements within the meaning of the U.S. federal securities laws. For those statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Any statements

  3. Slide 3: Agenda

    Agenda Proprietary and Confidential Financial results Operating highlights and key initiatives Q&A Braxton Carter, CFO John Legere, President and CEO 3

  4. Slide 4: Operating highlights and key initiatives

    Operating highlights and key initiatives John Legere President and CEO Proprietary and Confidential 4

  5. Slide 5: Q2 2013 operating highlights

    Q2 2013 operating highlights Proprietary and Confidential 5  1.1 million net customer additions  Led US wireless industry with 685,000 branded postpaid phone net adds  Record low branded postpaid churn of 1.58%  Un-carrier – successful execution of major strategic initiatives:  Accelerated netw

  6. Slide 6: Branded postpaid growth – improving quality

    Branded postpaid growth – improving quality Proprietary and Confidential 6 Net porting ratio 1 Q2 2013 Q1 2013 Q4 2012 688 -199 -515 Q2 2013 Q1 2013 Q4 2012 Branded postpaid nets thousand 688k branded postpaid net adds  +77% YoY postpaid gross adds  1.58% branded postpaid churn – all-time low  +1

  7. Slide 7: Strong total branded growth

    Net adds Strong total branded growth Proprietary and Confidential 7 688 -199 -515 Q1 2013 Q2 2013 Q4 2012 Branded postpaid Branded prepaid Total branded Churn 1.58%1.9% 2.5% Q1 2013 Q4 2012 Q2 2013 4.9%4.4%4.9% Q2 2013 Q1 2013 Q4 2012 -87 310 73 Q2 2013 Q1 2013 Q4 2012 thousand Back to growth in pos

  8. Slide 8: Strong customer momentum across the board

    Net adds Strong customer momentum across the board Proprietary and Confidential 8 601 111 -442 Q2 2013 Q1 2013 Q4 2012 Total branded Wholesale1 Total 452 576 410 Q2 2013 Q1 2013 Q4 2012 thousand Strong total branded growth  Demonstrates success of Un-carrier strategy and Simple Choice plan Sustaine

  9. Slide 9: Un-carrier – key initiatives

    Un-carrier – key initiatives Proprietary and Confidential 9  Completed competitive full device lineup  Strategic direction – get on customer’s side and relieve pain points – Un-carrier 1.0: Simple Choice/no annual contract – Un-carrier 2.0: JUMP!/no annual contract family plans – Un-carrier 3.0: S

  10. Slide 10: Rapidly reaching top markets with 4G LTE

    Rapidly reaching top markets with 4G LTE Proprietary and Confidential 10 4G LTE rollout and modernization  157 million 4G LTE POPs in 116 metro areas  200 million POPs prior to the end of 2013  73 of Top 100 markets  Blazing fast 4G LTE performance Solid 4G HSPA+ network  228 million POPs on AW

  11. Slide 11: MetroPCS integration ahead of plan

    MetroPCS integration ahead of plan Proprietary and Confidential 11 Integration milestones  Launched HSPA+/LTE devices in MetroPCS markets  Already combined 4G LTE spectrum in Las Vegas  MetroPCS customers’ LTE handsets already compatible with TMUS network  Sales in new MetroPCS expansion markets

  12. Slide 12: Financial results

    Financial results Proprietary and Confidential 12 Braxton Carter CFO

  13. Slide 13: Double-digit growth in total revenues

    Note: All figures are pro forma combined results 5,1225,1065,227 Q2 2013 Q1 2013 Q4 2012 Double-digit growth in total revenues Proprietary and Confidential 13 Total revenue ($ million) Service revenue ($ million) Adjusted EBITDA ($ million) 26% 29% 25% Adj. EBITDA margin 11.5% QoQ growth in total re

  14. Slide 14: Stabilizing branded postpaid ARPU trend

    Stabilizing branded postpaid ARPU trend Proprietary and Confidential 14 ARPU decline from migration to Simple Choice / Value plans partly offset by strong smartphone growth  Sequential decline of $0.47 (-0.9%) vs. $1.40 (-2.5%) in Q1  Simple Choice / Value plans 77% of branded postpaid gross adds

  15. Slide 15: Strong cash position

    2,362 449394 Q2 2013 Q1 2013 Q4 2012 Strong cash position Proprietary and Confidential 15 Cash Capex ($ million) Ending cash ($ million) Simple FCF1 ($ million) Significant investment in network modernization  Accelerated rollout of 4G LTE  157 million POPs in 116 metro areas Focus on FCF generati

  16. Slide 16: Guidance for 2013

    Guidance for 2013 Proprietary and Confidential 16 2013 Outlook Guidance Adjusted EBITDA pro forma combined ($ billion)1 Cash capex pro forma combined ($ billion)1 Branded postpaid net adds (million) 5.2 – 5.4 4.2 – 4.4 1.0 – 1.2 Penetration of Simple Choice / Value plans in branded postpaid base 60%

  17. Slide 17: Recap highlights

    Recap highlights Proprietary and Confidential 17  Un-carrier 1.0 & 2.0 – significant improvement in customer momentum – 685k branded postpaid phone net adds – leading the industry in Q2 – 688k branded postpaid net adds – 77% YoY increase in postpaid gross adds – 1.58% churn – all-time low  Rapidly

T-Mobile US — Q2 2013 Earnings Presentation on 6ix