T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q2 2022 Earnings Presentation
29 slides from T-mobile Us's earnings presentation, Jul 27, 2022
Slide 1: Investor Factbook Q2 2022
EXHIBIT 99.2 IY INVESTOR © ss fw FACTBOOK Q2 2022
Slide 2: Table of contents
2 3 Highlights 4 Customer Metrics 7 Financial Metrics 13 Capital Structure 14 5G Network Leadership 15 Merger & Integration 16 Guidance 17 Contacts 18 Financial and Operational Tables
Slide 3: T-Mobile Delivers Industry-Leading Postpaid Service, Revenue and Cash Flow Growth
3 T-Mobile Delivers Industry-Leading Postpaid Service Revenue and Cash Flow Growth in Q2 2022 and Raises Guidance Across the Board “Our relentless focus on putting customers first delivered yet another outstanding quarter for T-Mobile with industry-leading postpaid and broadband customer growth, inc
Slide 4: Postpaid Accounts
4 Postpaid Accounts Year-Over-Year (in thousands) Postpaid net account additions increased primarily due 26,901 27,216 27,507 27,818 to continued growth in High Speed Internet. 26,363 ■ Postpaid net account additions were the highest in company history, driven by the company’s differentiated growth
Slide 5: Postpaid Customers
5 Postpaid Customers Year-Over-Year (in thousands) Postpaid phone net customer additions increased 85,913 87,663 88,423 88,787 primarily due to: 83,848 ■ Higher gross additions primarily driven by growth in new 1,750 1,656 customer account relationships 1,318 ■ Lower churn 1,276 1,259 906 ■ Partiall
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: 20,941 21,007 21,056 21,118 21,236 ■ Introduction of High Speed Internet offering ■ Higher gross additions 146 ■ Lower churn ■ Lower migrations to postpaid plans 76 66 62 49 Sequential Prepai
Slide 7: Service Revenues
7 Service Revenues Year-Over-Year ($ in millions) Service revenues increased 6% primarily due to: ■ Increase in Postpaid service revenues $15,316 $15,128 ■ Partially offset by a decrease in Wholesale and other $14,963 $14,722 service revenues $14,492 Sequential Service revenues increased 1% primaril
Slide 8: Equipment Revenues
8 Equipment Revenues Year-Over-Year ($ in millions) Equipment revenue decreased 21% primarily due to: ■ Lower lease revenues and lower customer purchases of $5,506 leased devices driven by a continued strategic shift from $5,215 device financing to equipment installment plans $4,660 $623 $4,694 $914
Slide 9: Cost of Services, exclusive of D&A
9 Cost of Services, exclusive of D&A Year-Over-Year ($ in millions, % of Service revenues) Cost of services, exclusive of D&A, increased 16% $4,060 primarily due to: $3,727 $3,491 $3,538 $3,521 ■ Higher Merger-related costs related to network decommissioning and integration ■ Higher site costs relat
Slide 10: Net (Loss) Income
10 Net (Loss) Income Year-Over-Year ($ in millions, % of Service revenues) Net loss was $108 million and Diluted loss per share was $0.09 in Q2 2022, compared to Net income of $978 million and Diluted earnings per share of $0.78 in Q2 $978 2021, primarily due to the factors described above and inclu
Slide 11: Core Adjusted EBITDA
11 Core Adjusted EBITDA* Year-Over-Year ($ in millions, % of Service revenues) Core Adjusted EBITDA increased 10% primarily due to: $6,618 ■ Higher Service revenues $6,463 $5,992 $6,041 ■ Lower Cost of equipment sales, excluding Merger- $5,679 related costs ■ Lower Cost of services, excluding Merger
Slide 12: Cash Purchases of Property and Equipment; Free Cash Flow
12 Cash Purchases of Property and Year-Over-Year Equipment ($ in millions, % of Service revenues) Cash purchases of property and equipment increased 9% primarily due to: $3,572 ■ Accelerated build-out of our nationwide 5G network $3,270 $3,381 $2,944 $2,929 Sequential Cash purchases of property and
Slide 13: Net Debt & Net Debt to LTM Core Adj. EBITDA Ratio
13 Total debt, excluding tower obligations, at the end of Q2 Net Debt (Excluding Tower 2022 was $73.8 billion. Obligations) & Net Debt to LTM Core Net debt, excluding tower obligations, at the end of Q2 Adj. EBITDA Ratio 2022 was $70.7 billion. ($ in billions) ■ The ratio of net debt, excluding towe
Slide 14: 5G Network Leadership
5G Network Leadership Unprecedented Pace of 5G Network Build Delivers Differentiated Customer Experience Sites Combined LTE + 5G 5G Geographic Coverage Macro Cell Sites 4G LTE — 5G EXTENDED RANGE 5G ULTRA CAPACITY pa Small cell/distributed ; ¢ antenna systems sites Delivering more 5G geographic cove
Slide 15: Merger synergies guidance raised; Merger-related costs
15 T-Mobile raises Merger synergies guidance range to $5.4 to $5.6 billion in 2022, driven by continued strength of integration execution. The Company expects full-year 2022 Merger synergies to be $5.4 billion to $5.6 billion: ▪ $2.3 billion to $2.4 billion of SG&A expense reductions. ▪ $1.8 billion
Slide 16: 2022 Outlook
16 2022 Outlook Metric Previous Revised Change at Midpoint Postpaid net customer additions 5.3 to 5.8 million 6.0 to 6.3 million 600 thousand Net income (1) N/A N/A N/A Core Adjusted EBITDA (2) $25.8 to $26.2 billion $26.0 to $26.3 billion $150 million Merger synergies $5.2 to $5.4 billion $5.4 to $
Slide 17: Investor Relations
17 Investor Relations Jud Henry Justin Taiber Trina Schurman Senior Vice President Senior Director Senior Director Investor Relations Investor Relations Investor Relations Samia Bhatti Zach Witterstaetter Rose Kopecky Jacob Marks Investor Relations Investor Relations Investor Relations Investor Rela
Slide 18: Condensed Consolidated Balance Sheets
T-Mobile US, Inc. Condensed Consolidated Balance Sheets (Unaudited) (in millions, except share and per share amounts) June 30, 2022 December 31, 2021 Assets Current assets Cash and cash equivalents $ 3,151 $ 6,631 Accounts receivable, net of allowance for credit losses of $177 and $146 4,466 4,194 E
Slide 19: Condensed Consolidated Statements of Comprehensive (Loss) Income
T-Mobile US, Inc. Condensed Consolidated Statements of Comprehensive (Loss) Income (Unaudited) Three Months Ended Six Months Ended June 30, June 30, March 31, June 30, (in millions, except share and per share amounts) 2022 2022 2021 2022 2021 Revenues Postpaid revenues $ 11,445 $ 11,201 $ 10,492 $ 2
Slide 20: Condensed Consolidated Statements of Cash Flows
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) 2022 2022 2021 2022 2021 Operating activities Net (loss) income $ (108) $ 713 $ 978 $ 605 $ 1,911 Adjustments to reconcile net (loss) i
Slide 21: Condensed Consolidated Statements of Cash Flows (Continued)
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) 2022 2022 2021 2022 2021 Supplemental disclosure of cash flow information Interest payments, net of amounts capitalized $ 9
Slide 22: Supplementary Operating and Financial Data
T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Six Months Ended Quarter June 30, (in thousands) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 2021 2022 Customers, end of period Postpaid phone customers (1)(2) 67,402 68,029 69,418 70,262 70,656 71,053 68,029 71,053 Postpai
Slide 23: Supplementary Operating and Financial Data
T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Six Months Ended Quarter June 30, (in thousands) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 2021 2022 Accounts, end of period Total postpaid customer accounts (1)(2) 26,014 26,363 26,901 27,216 27,507 27,818 26,363 27,818
Slide 24: Supplementary Operating and Financial Data (continued)
T-Mobile US, Inc. Supplementary Operating and Financial Data (continued) (Unaudited) Six Months Ended Quarter June 30, (in millions, except percentages) Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 2021 2022 Financial Measures Service revenues $14,192 $14,492 $14,722 $14,963 $15,128 $15,316 $28,6
Slide 25: Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
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 accordance
Slide 26: Reconciliation of Non-GAAP Financial Measures to GAAP (continued)
T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) Net debt (excluding tower obligations) to the LTM Adjusted EBITDA and LTM Core Adjusted EBITDA ratios are calculated as follows: Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, (in mill
Slide 27: Reconciliation of Non-GAAP Financial Measures to GAAP (continued)
T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) The current guidance range for Free Cash Flow is calculated as follows: FY 2022 (in millions) Guidance Range Net cash provided by operating activities $ 16,000 $ 16,300 Cash purchases o
Slide 28: Definitions of Terms
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-Mobile
Slide 29: Cautionary Statement Regarding Forward-Looking Statements
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.’s f