T-mobile Us, Inc. · NASDAQ:TMUS

T-mobile Us — FY2013 Earnings Presentation

18 slides from T-mobile Us's earnings presentation, Feb 25, 2014

  1. Slide 1: T-Mobile US Q4 and Full Year 2013

    T-Mobile US Q4 and Full Year 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 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: Key Messages: Growth and profitability

    Growth and profitability  Met Adjusted EBITDA target while exceeding branded postpaid net adds guidance  Strong cost discipline with $1.7 billion run-rate costs taken out of the business in 2013 Key Messages 5 2013: T-Mobile is the fastest growing wireless company  Total net additions of more tha

  6. Slide 6: Transformational Year of Growth as Un-carrier

    UN-CARRIER 1.0 – SIMPLE CHOICE MARCH 26 Transformational Year of Growth as Un-carrier APPLE iPHONE LAUNCHED APRIL12 CLOSED METROPCS DEAL – TMUS LISTED ON NYSE APRIL 30 / MAY 1 UN-CARRIER 2.0 – JUMP! AND SIMPLE CHOICE FOR FAMILY JULY 10 UN-CARRIER 3.0, PART I – SIMPLE GLOBAL OCT 9 ANNOUNCED VERIZON A

  7. Slide 7: Sustained Postpaid Growth – Improving Quality

    Continued Improvement in Customer Quality  2013 Service bad debt exp. down 51% YoY  EIP receivables: 54% Prime vs. 43% in 4Q12  Un-carrier 4.0 launch – strong uptake among highest credit quality customers Branded Prepaid Net Adds Accelerating  112K branded prepaid net adds in 4Q13  Ongoing prep

  8. Slide 8: Strong Customer Momentum Across the Board

    Over 4.4 million Total Net Adds in 2013  3rd consecutive quarter of over 1 million net adds (32) 410 576 452 351 664 Nearly 1.0 Million Total Branded Net Adds  Un-carrier strategy driving continued success in branded postpaid and prepaid 4Q12 1Q13 2Q13 3Q13 4Q13 Strong Customer Momentum Across the

  9. Slide 9: Fastest 4G LTE Network in the United States

    1 According to our independent analysis of the NetMetrics reports provided by Speedtest.net. Strategic 700 A-Block Transaction Announced  158M POPs covered including existing Boston license  9 of Top 10 and 21 of Top 30 metro areas  70% of existing TMUS customer base  Deployment planned to start

  10. Slide 10: MetroPCS Integration Continues Ahead of Plan

     Synergies exceeded plan in 20131 – Capex synergies at $675M versus original plan of $70-135M – Opex synergies at $105M versus original plan of $(30)-30M  One-time integration costs – opex and capex – ahead of target in 20131 ‒ $450M network and non-network costs versus original plan of $500- 640M

  11. Slide 11: Financial Results

    Financial Results 11 Braxton Carter CFO

  12. Slide 12: Strong Profitability and Significant Growth

    Over $5.3 billion of Adjusted EBITDA in 2013  FY13 Adjusted EBITDA fully in line with guidance coupled with significant out performance on growth  Record smartphone sales of 6.2 million units  Branded postpaid upgrade rate of 9%; up from 6% in 4Q12 and flat sequentially Total Revenue Growth of 10

  13. Slide 13: Customer Quality Continues to Improve

    Customer Quality Continues to Improve  2013 Service bad debt exp. down 51% YoY  2013 Service bad debt exp. as % of service revenues: 1.47%; down 136 basis points YoY Rapid Adoption of Simple Choice Driving ARPU 13 $55.47 $54.07 $53.60 $52.20 $50.70 Branded Postpaid ARPU $ per month QoQ % change 4Q

  14. Slide 14: Balance Sheet Provides Significant Flexibility

    Ongoing Investment in Network Modernization  Capex weighted toward H1 to maximize customer benefits  Fastest 4G LTE network covering 209M POPs in 273 metro areas $199 $239 $154 $327 $357 4Q12 1Q13 2Q13 3Q13 4Q13 Balance Sheet Provides Significant Flexibility 14 Simple Free Cash Flow1 in millions $

  15. Slide 15: Successful Execution on 2013 Guidance

    Successful Execution on 2013 Guidance 15 2013 Guidance Achievement Adjusted EBITDA pro forma combined (in billions)1 Cash Capex pro forma combined (in billions)1 Branded Postpaid Net Adds (millions) $5.2 – $5.4 $4.2 – $4.4 1.6 – 1.8 Penetration of Simple Choice/Value Plans in Branded Postpaid Base 6

  16. Slide 16: Guidance for 2014

    Guidance for 2014 16 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/Value Plans in Branded Postpaid Base 85% – 90%

  17. Slide 17: Key Messages: Growth and profitability

    Growth and profitability  Met Adjusted EBITDA target while exceeding branded postpaid net adds guidance  Strong cost discipline with $1.7 billion run-rate costs taken out of the business in 2013 Key Messages 17 2013: T-Mobile is the fastest growing wireless company  Total net additions of more th

  18. Slide 18: T-Mobile US Q4 and Full Year 2013

    T-Mobile US Q4 and Full Year 2013

T-Mobile US — FY2013 Earnings Presentation on 6ix