Slide 1: T-Mobile US Q1 2014 Earnings
T - Mobile- T-Mobile US Q1 2014 Earnings
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
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
Slide 4: Operating Highlights and Key Initiatives
Operating Highlights and Key Initiatives John Legere President and CEO 4
Slide 5: Delivered top line growth and set the stage to significantly grow the bottom line
Delivered top line growth and set the stage to significantly grow the bottom line Delivered both sequential and year-over-year service revenue growth Projecting strong year-over-year Adjusted EBITDA growth in 2014 Key Messages – A Quarter of Records 5 Record quarter for T-Mobile – the fastest gr
Slide 6: Year Anniversary Marks Transformational Turnaround
1 Year Anniversary Marks Transformational Turnaround 6 $15 $20 $25 $30 $35 $15.581 $29.29 May July Sept Nov Jan Mar TMUS Share Price Performance +88% TMUS 1-Year Anniversary Completed transaction with MetroPCS on 4/30/13 Began trading on the NYSE as TMUS on 5/1/13 +88% share price appreciation
Slide 7: Record Postpaid Customer Growth & Churn
Continued Improvement in Customer Quality Service bad debt expense down 13% QoQ EIP receivables: 53% Prime vs. 44% in 1Q13 Prime mix among branded postpaid gross adds up 19 percentage points YoY Significant Improvement in Branded Prepaid Net Adds 465K branded prepaid net adds in 1Q14 Ongoi
Slide 8: Strong Customer Momentum Across the Board
Nearly 2.4 million Total Net Adds in Q1 4th consecutive quarter of over 1 million net adds 576 452 351 664 603 Almost 1.8 Million Total Branded Net Adds Un-carrier strategy driving continued success in branded postpaid and prepaid 1Q13 2Q13 3Q13 4Q13 1Q14 Strong Customer Momentum Across the Boar
Slide 9: 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 A-Block Transaction Lays Groundwork for Further Network Improvement 158M POPs covered including existing Boston license 9 of Top 10 and 21 of Top 30 metro areas 70% of existing TMUS custom
Slide 10: MetroPCS Integration Continues Ahead of Plan
MetroPCS customers with TMUS compatible handsets: 53% at end of Q1 2014 More than 50% of MetroPCS spectrum re-farmed and integrated into the T-Mobile network at end of Q1 2014 30 new expansion markets with nearly 2,200 distribution points at end of Q1 2014 Accelerating shutdown of CDMA netwo
Slide 11: Financial Results
Financial Results 11 Braxton Carter CFO
Slide 12: Strong Profitability and Significant Growth
Significant Growth Pressures Adjusted EBITDA Adjusted EBITDA pressured by significant acceleration of growth, strong uptake of ETF offer (impact ~$100 million) and record sale of smartphones Record smartphone sales of 6.9 million units Branded postpaid upgrade rate of 7%; down from 9% in 4Q13
Slide 13: Strong Growth in ABPU – Moderating Decline in ARPU
Customer Quality Continues to Improve Service bad debt expense down 3% YoY and 13% QoQ Service bad debt expense as % of service revenues: 1.4%; down 12 basis points YoY and 26 basis points QoQ Strong Growth in ABPU – Moderating Decline in ARPU 13 $54.07 $53.60 $52.20 $50.70 $50.01 Branded Postpa
Slide 14: Balance Sheet Provides Significant Flexibility
Ongoing Investment in Network Modernization FY14 cash capex guidance of $4.3 to $4.6 billion Fastest 4G LTE network covering 220M+ POPs in 284 metro areas $83 $518 $575 $679 $540 1Q13 2Q13 3Q13 4Q13 1Q14 Balance Sheet Provides Significant Flexibility 14 QoQ Change in Total EIP Receivables in mil
Slide 15: Updated Guidance for 2014
Updated Guidance for 2014 15 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% Original Revised Unchanged Unchanged 2.8 – 3
Slide 16: Delivered top line growth and set the stage to significantly grow the bottom line
Delivered top line growth and set the stage to significantly grow the bottom line Delivered both sequential and year-over-year service revenue growth Projecting strong year-over-year Adjusted EBITDA growth in 2014 Key Messages – A Quarter of Records 16 Record quarter for T-Mobile – the fastest g
Slide 17: T-Mobile US Q1 2014 Earnings
T - Mobile- T-Mobile US Q1 2014 Earnings