T-mobile Us, Inc. · NASDAQ:TMUS

T-mobile Us — Q2 2014 Earnings Presentation

16 slides from T-mobile Us's earnings presentation, Jul 31, 2014

  1. Slide 1: T-Mobile US Q2 2014 Earnings

    T - Mobile- T-Mobile US Q2 2014 Earnings

  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 Financial Results Operating Highlights and Key Initiatives Q&A Braxton Carter, CFO John Legere, President and CEO 3 TMUS Management Team

  4. Slide 4: Operating Highlights and Key Initiatives

    Operating Highlights and Key Initiatives John Legere President and CEO 4

  5. Slide 5: We expect our positive momentum to continue into the second half of 2014

    We expect our positive momentum to continue into the second half of 2014  Increased guidance range for branded postpaid net adds to 3.0 – 3.5 million  No change to Adjusted EBITDA guidance – projecting strong YoY growth in 2014 Key Messages 5 Fastest Growing Wireless Company in America  Industry-

  6. Slide 6: Over 900K Branded Postpaid Net Adds; churn at record lows

    Churn Results Continued at Record Lows  Branded postpaid phone churn at 1.5%, flat QoQ and YoY Industry-Best Branded Prepaid Performance  102K branded prepaid net adds in seasonally slower second quarter – significant improvement from (87K) in 2Q 2013  Ongoing prepaid to postpaid migrations of ~8

  7. Slide 7: 1.5 million Total Net Adds in Q2

    1.5 million Total Net Adds in Q2  5th consecutive quarter of over 1 million total net adds  6th consecutive quarter of positive customer momentum – value proposition continues to resonate 452 351 664 603 460 Over 1 Million Total Branded Net Adds  Un-carrier strategy driving continued success in b

  8. Slide 8: Fastest Nationwide 4G LTE Network in the US

    1) Based on download speeds. 2) Based on T-Mobile’s analysis of crowd-sourced 4G LTE download speeds. 700 MHz A-Block Transaction Lays Groundwork for Further Network Improvement  158M POPs covered including 9 of Top 10 and 21 of Top 30 metro areas  First 700MHz sites on air and first handsets bein

  9. Slide 9: MetroPCS Integration Continues Ahead of Plan

     CDMA network portion of the MetroPCS markets in Boston, Hartford, and Las Vegas shut down in early July – 2.5 years ahead of initial plan  Shutdown of CDMA network portion in Philadelphia expected in Q3 with potential for early shutdowns in several additional markets by YE  One-time shutdown cos

  10. Slide 10: Financial Results

    Financial Results 10 Braxton Carter CFO

  11. Slide 11: Total Revenue Growth and Adjusted EBITDA Growth

    YoY and QoQ Growth in Adjusted EBITDA  YoY growth of 14.7% and QoQ growth of 33.4%  Strong smartphone sales of 6.2 million units  Branded postpaid upgrade rate of 8%; up from 7% in 1Q14 and down from 10% in 2Q13 Total Revenue Growth of 8.0% YoY  4.5% QoQ growth in Total Revenue  $1.342 billion

  12. Slide 12: Customer Quality and ARPU/ABPU Trends

    Customer Quality Continues to Improve  EIP receivables: 53% Prime  Prime mix among branded postpaid gross adds improved 9pp YoY Continued Growth in Average Billings Per User (ABPU) 12 $54.04 $52.62 $51.13 $50.48 $49.32 Branded Postpaid Phone ARPU $ per month YoY % change 2Q13 3Q13 4Q13 1Q14 2Q14 1

  13. Slide 13: Ongoing Investment in Network Modernization; Balance Sheet Flexibility

    Ongoing Investment in Network Modernization  FY14 cash capex guidance of $4.3 to $4.6 billion  Fastest 4G LTE network covering 233M+ POPs in 325 metro areas $518 $575 $679 $540 $497 2Q13 3Q13 4Q13 1Q14 2Q14 Balance Sheet Provides Significant Flexibility 13 QoQ Change in Total Net EIP Receivables i

  14. Slide 14: Updated Guidance for 2014

    Updated Guidance for 2014 14 2014 Guidance Outlook Adjusted EBITDA (in billions) Cash Capex (in billions) Branded Postpaid Net Adds (in millions) $5.7 – $6.0 $4.3 – $4.6 2.0 – 3.0 Penetration of Simple Choice Plans in Branded Postpaid Base 85% – 90% Original Q1 2014 Unchanged Unchanged 3.0 – 3.5 Unc

  15. Slide 15: We expect our positive momentum to continue into the second half of 2014

    We expect our positive momentum to continue into the second half of 2014  Increased guidance range for branded postpaid net adds to 3.0 – 3.5 million  No change to Adjusted EBITDA guidance – projecting strong YoY growth in 2014 Key Messages 15 Fastest Growing Wireless Company in America  Industry

  16. Slide 16: T-Mobile US Q2 2014 Earnings

    T - Mobile- T-Mobile US Q2 2014 Earnings

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