T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q1 2024 Earnings Presentation
23 slides from T-mobile Us's earnings presentation, Apr 25, 2024
Slide 1: Q1 2024 Investor Factbook
Q1 2024 INVESTOR FACTBOOK
Slide 2: Notes on industry claims and non-GAAP measures
(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 ar
Slide 3: Postpaid ARPA & Postpaid Phone ARPU
■ ■ ostpaid ARPA increased 2% primarily due to: ■ Higher premium services, primarily high-end rate plans, net of contra revenues for content included in such plans, and discounts for specific affinity groups (55+, military, and first responders) ■ An increase in customers per account, including cont
Slide 4: Postpaid ARPA and Postpaid Phone ARPU chart
138.04 $138.94 $139.69 SO ae $48.63 $48.84 $48.93 $48.91 $48.79 o =a38) e e Postpaid ARPA —O— Postpaid Phone ARPU
Slide 5: Improved customer retention driven by value and network leadership
■ ■ Improved customer retention driven by value and network leadership Year-Over-Year Postpaid phone net customer additions slightly decreased primarily due to: Higher deactivations from a growing customer base Mostly offset by a lower churn rate and higher gross additions Postpaid other net custome
Slide 6: Postpaid phone churn chart
5 0.96% 0.89% 0.87% 0.86% 0.77%
Slide 7: High Speed Internet Customers
■ riven by continued moderation of prepaid industry growth and lower High Speed Internet additions ■ Year-Over-Year Prepaid net customer additions (losses) decreased primarily due to: Lower gross additions, d Sequential Prepaid net customer additions (losses) decreased primarily due to: Lower gross
Slide 8: High Speed Internet net customer additions chart
523 509 557 541 405 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 |_| Postpaid High Speed Internet net customer additions |_| Prepaid High Speed Internet net customer additions —O— High Speed Internet customers
Slide 9: Postpaid Service Revenues
primar Year-Over-Year Service revenues increased 4% primarily due to: ■ Increase in Postpaid service revenues ■ Partially offset by a decrease in Wholesale and other service revenues, including the impact from the sale of the Wireline Business Sequential Service revenues were relatively flat ily due
Slide 10: Postpaid service revenues chart
$11,862 $12,070 $12,288 $12,472 $12,631
Slide 11: Equipment revenues
Equipment revenues decreased 13% : ■ A decrease in the number of postpaid and prepaid devices sold, including lower upgrades ■ Partially offset by a slightly higher average revenue per device sold, primarily driven by a shift in the high-end phone mix, which was mostly offset by an increase in promo
Slide 12: Cost of equipment sales chart
$5,608 eases $4,088 $4,249 $4,399 128.4% 131.9% 140.6% 135.8% 136.8% O o =S O © Cost of Equipment sales, excl. D&A —O— % of Equipment sales, excl. D&A
Slide 13: Cost of services and SG&A expense
■ ■ ■ 4% ■ G&A expense decreased arily due to: ■ ■ ■ ■ SG&A expense decreased 3% primarily due to: ■ Seasonally lower advertising and other selling expenses ■ ■ Year-Over-Year Cost of services, exclusive of D&A, decreased 12% primarily due to: Lower costs due to the sale of the Wireline Business Low
Slide 14: SG&A expense, ex. Special Items
$5,425 $5,272 $5,334 $5,280 $5138 33.3% 32.6% 34.0% 32.2% 31.7% e e. ° ec SG&A expense, ex. Special Items II Merger-related costs Other Special Items -O- % of Srvc revs, ex. Special Items
Slide 15: Diluted Earnings Per Share
Diluted Earnings Per Share (Diluted EPS)
Slide 16: Net income and Diluted EPS
Net income was $2.4 billion and Diluted earnings per share was $2.00 in Q1 2024, compared to $1.9 billion and $1.58 in Q1 2023, primarily due to the factors described above and included the following, net of tax: ■ Merger-related costs in Q1 2024 of $97 million, or $0.08 per share, compared to $268
Slide 17: Core Adjusted EBITDA and net cash from operating activities
6% pri imarily due to: ■ Higher ■ 5% ■ Higher ■ Partially offset by higher net cash outflows from changes in working capital *Excludes Special Items (see detail on page 23) Year-Over-Year Core Adjusted EBITDA increased 8% primarily due to: ■ Higher Service revenues ■ Lower Cost of services, excludin
Slide 18: Core Adjusted EBITDA and operating cash flow chart
$2 54,a59 _$5:084 $4,051 $4,355
Slide 19: Cash purchases of property and equipment and Adjusted Free Cash Flow
sh purchases of property and equipment, including capitalized interest, decreased 12% : ■ Increased capital efficiencies from accelerated investments in our nationwide 5G network build-out in previous years Cash purchases of property and equipment, including capitalized interest, increased 66% prima
Slide 20: Cash capital expenditures chart
$4,305 $4,003 $3,347 $2,877 $2,401
Slide 21: Stockholder Returns
Stockholder Returns ($ in millions)
Slide 22: Stockholder return program and debt
On September 6, 2023, the Board of Directors authorized a stockholder return program for up to $19.0 billion that will run through December 31, 2024, consisting of additional repurchases of shares and payment of cash dividends. ■ During Q1 2024, 21.9 million shares were repurchased for $3.6 billion.
Slide 23: Slide 23