T-mobile Us, Inc. · NASDAQ:TMUS
T-mobile Us — Q4 2024 Earnings Presentation
29 slides from T-mobile Us's earnings presentation, Jan 29, 2025
Slide 1: Exhibit 99.2
EXHIBIT 99.2
Slide 2: Contents
2 3 Highlights 4 Customer Metrics 7 Financial Metrics 13 Capital Structure 14 Guidance 15 Contacts 16 Financial and Operational Tables
Slide 3: Highlights 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 accounts with a decrease in net additions primarily due to: 30,631 30,894 30,015 30,316 ■ Fewer High Speed Internet only additions 29,797 Sequential 299 301 315 218 263 Continued growth in Postpaid accounts with a decreas
Slide 5: Postpaid Customers
5 Postpaid Customers Year-Over-Year (in thousands) Postpaid phone net customer additions decreased primarily due to: 99,272 100,610 102,185 104,118 98,052 ■ Increased deactivations from a growing customer base, 1,933 partially offset by lower churn 1,570 1,575 1,220 1,338 Postpaid other net customer
Slide 6: Prepaid and High Speed Internet Customers
6 Prepaid Customers Year-Over-Year (in thousands) Prepaid net customer additions increased primarily due to: 25,283 25,307 25,410 ■ Higher net additions following the acquisition of Mint Mobile and Ultra Mobile 21,648 21,600 ■ Partially offset by higher deactivations from a larger base 179 and conti
Slide 7: Service Revenues
7 Service Revenues Year-Over-Year ($ in millions) Service revenues increased 6% primarily due to: ■ Increase in Postpaid service revenues $16,725 $16,928 ■ Increase in Prepaid service revenues, driven by the $16,429 $16,043 $16,096 impact of the acquisition of Mint Mobile and Ultra Mobile ■ Partiall
Slide 8: Equipment Revenues
8 Equipment Revenues Year-Over-Year ($ in millions) Equipment revenues increased 13% primarily due to: $4,699 ■ A higher average revenue per device sold, net of $4,174 promotions, primarily driven by an increase in the high- $4,688 end phone mix, including from higher postpaid device $4,131 $3,251 $
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 3% primarily due to: ■ Prior year Merger-related costs related to network $2,792 $2,688 $2,664 $2,722 $2,697 decommissioning and integration $2,646 $2,655 $2,622 ■
Slide 10: Net Income and Diluted EPS
10 Net Income Year-Over-Year ($ in millions, % of Service revenues) Net income was $3.0 billion and Diluted earnings per share was $2.57 in Q4 2024, compared to $2.0 billion and $1.67 in Q4 2023, primarily due to the factors described $3,059 $2,981 above and included the following, net of tax: $2,92
Slide 11: Core Adjusted EBITDA and Operating Cash Flow
11 Core Adjusted EBITDA* Year-Over-Year ($ in millions, % of Service revenues) Core Adjusted EBITDA increased 10% primarily due to: ■ Higher Total service revenues $8,027 $8,222 ■ Higher Equipment revenues, excluding Lease revenues $7,905 $7,617 $7,181 ■ Partially offset by higher Cost of equipment
Slide 12: Capital Expenditures and Adjusted Free Cash Flow
12 Cash Purchases of Property and Year-Over-Year Equipment, incl. Capitalized Interest Cash purchases of property and equipment, including ($ in millions, % of Service revenues) capitalized interest, increased 39% primarily due to: ■ Planned timing of capital purchases $2,627 Sequential $2,212 $2,04
Slide 13: Net Debt and Stockholder Returns
13 Total debt, excluding tower obligations, at the end of Q4 Net Debt (Excluding Tower 2024 was $80.6 billion. Obligations) & Net Debt to LTM Net Net debt, excluding tower obligations, at the end of Q4 Income and Core Adj. EBITDA 2024 was $75.2 billion. Ratios ($ in billions) ■ On a cumulative basis
Slide 14: 2025 Outlook
14 2025 Outlook Postpaid net customer additions 5.5 to 6.0 million Net income (1) N/A Effective tax rate 24% to 26% Core Adjusted EBITDA (2) $33.1 to $33.6 billion Net cash provided by operating activities $26.8 to $27.5 billion Capital expenditures (3) ~$9.5 billion Adjusted Free Cash Flow $17.3 to
Slide 15: Investor Relations
15 Investor Relations Cathy Yao 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) 2024 2023 Assets Current assets Cash and cash equivalents $ 5,409 $ 5,135 Accounts receivable, net of allowance for credit losses of $176 and $161 4,276 4,692 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) 2024 2024 2023 2024 2023 Revenues Postpaid revenues $ 13,502 $ 13,308 $ 12,472 $ 52,34
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) 2024 2024 2023 2024 2023 Operating activities Net income $ 2,981 $ 3,059 $ 2,014 $ 11,339 $ 8,317 Adjustments to reconcile net incom
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) 2024 2024 2023 2024 2023 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 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Customers, end of period Postpaid phone customers (1) 73,372 74,132 74,982 75,936 76,468 77,245 78,110
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 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Accounts, end of period Total postpaid customer accounts 28,813 29,112 29,498 29,797 30,015 30,316 30,6
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 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Financial measures Service revenues $15,546 $15,738 $15,914 $16,043 $16,
Slide 23: Supplementary Data: Stockholder Returns
23 T-Mobile US, Inc. Supplementary Operating and Financial Data (Unaudited) Year Ended Quarter December 31, (in millions, except share and per share amounts) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 2023 2024 Stockholder returns Total repurchases $ 4,766 $ 3,525 $ 2,675 $ 2,24
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 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: Adjusted Free Cash Flow Guidance Reconciliation
26 T-Mobile US, Inc. Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued) (Unaudited) The guidance range for Adjusted Free Cash Flow is calculated as follows: FY 2025 (in millions) Guidance Range Net cash provided by operating activities $ 26,800 $ 27,500 Cash purchas
Slide 27: Definitions of Terms
27 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 28: Definitions of Terms (continued)
28 13. Net debt - Short-term debt, short-term debt to affiliates, long-term debt (excluding tower obligations), and long-term debt to affiliates, short- term financing lease liabilities and financing lease liabilities, less cash and cash equivalents. 14. Merger-related costs include: • Integration c
Slide 29: Cautionary Statement Regarding Forward-Looking Statements
29 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.’