January 29, 2025
Highest-Ever Postpaid Phone Gross Additions and Record Low Postpaid Phone Churn Drive the Third Straight Year of Over 3 Million Postpaid Phone Net Customer Additions Alongside Industry-Leading Service Revenue and Cash Flow Growth, and Highest-Ever Diluted EPS, Enabling Tremendous Shareholder Returns of $14.4 Billion in 2024
BELLEVUE, Wash., January 29, 2025 --( BUSINESS WIRE )--T-Mobile US, Inc. (NASDAQ: TMUS):
Industry-Leading Customer Growth Fueled by Best Network, Best Value and Best Experience Combination (1)
Translating Industry-Leading Customer Growth into Industry-Leading Financial Performance
Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership
Strong Outlook for 2025 with Continued Industry-Leading Growth
T-Mobile US, Inc. (NASDAQ: TMUS) reported fourth quarter and full-year 2024 results today, delivering industry-leading customer growth across the board, including industry-best growth in postpaid accounts, total postpaid, postpaid phone, prepaid, and High Speed Internet customers. The company also tied its lowest-ever Q4 postpaid phone churn, and delivered a record low postpaid phone churn for the full year alongside its highest-ever postpaid phone gross additions. The company translated its industry-leading customer growth into industry-best service revenue and cash flow growth in 2024 while fueling stockholder returns of $14.4 billion, executing against its ambitious multiyear growth plan.
"By putting customers first, T-Mobile delivered another monster Q4 that punctuated an amazing growth year with best-in-class results across wireless and broadband," said Mike Sievert, CEO of T-Mobile. "In 2024, more new postpaid customers chose the Un-carrier than ever before, and we had our lowest ever full-year postpaid phone churn, leading to our third year of more than 3 million postpaid phone net additions. Now, building on this incredible momentum, 2025 is poised to be even more exciting, and because of this, we’re issuing the strongest start-of-year postpaid net additions guide in our history. We’ve already hit the ground running on our ambitious plans to give customers the kind of new, transformative experiences no one else can, and we’re just getting started."
|
___________________________________________________________ |
||
|
(1) |
AT&T Inc. 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 are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable GAAP financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable. |
|
(3) |
|
Beginning in Q3 2022 through December 31, 2024. |
Industry-Leading Customer Growth Fueled by Best Network, Best Value and Best Experience Combination (1)
|
|
Quarter |
|
Year Ended
|
||||||||||||
|
(in thousands, except churn) |
Q4 2024 |
|
Q3 2024 |
|
Q4 2023 |
|
2024 |
|
2023 |
||||||
|
Postpaid net account additions |
263 |
|
|
315 |
|
|
299 |
|
|
1,097 |
|
|
1,271 |
|
|
|
Total net customer additions |
2,036 |
|
|
1,599 |
|
|
1,623 |
|
|
6,324 |
|
|
5,932 |
|
|
|
Postpaid net customer additions |
1,933 |
|
|
1,575 |
|
|
1,570 |
|
|
6,066 |
|
|
5,650 |
|
|
|
Postpaid phone net customer additions |
903 |
|
|
865 |
|
|
934 |
|
|
3,077 |
|
|
3,082 |
|
|
|
Postpaid other net customer additions (2) |
1,030 |
|
|
710 |
|
|
636 |
|
|
2,989 |
|
|
2,568 |
|
|
|
Prepaid net customer additions (2) |
103 |
|
|
24 |
|
|
53 |
|
|
258 |
|
|
282 |
|
|
|
Total customers, end of period (2) (3) |
129,528 |
|
|
127,492 |
|
|
119,700 |
|
|
129,528 |
|
|
119,700 |
|
|
|
Postpaid phone churn |
0.92 |
% |
|
0.86 |
% |
|
0.96 |
% |
|
0.86 |
% |
|
0.87 |
% |
|
|
Prepaid churn |
2.85 |
% |
|
2.78 |
% |
|
2.86 |
% |
|
2.73 |
% |
|
2.76 |
% |
|
|
High Speed Internet net customer additions |
428 |
|
|
415 |
|
|
541 |
|
|
1,654 |
|
|
2,130 |
|
|
|
Total High Speed Internet customers, end of period |
6,430 |
|
|
6,002 |
|
|
4,776 |
|
|
6,430 |
|
|
4,776 |
|
|
|
(1) |
AT&T Inc. 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) |
Includes High Speed Internet customers. |
|
|
(3) |
In the second quarter of 2024, we acquired 3,504,000 prepaid customers through our acquisition of Ka’ena, which includes the impact of certain base adjustments to align the policies of Ka’ena and T-Mobile. |
Translating Industry-Leading Customer Growth into Industry-Leading Financial Performance (1)
|
|
Quarter |
Year Ended
|
|
Q4 2024
|
|
Q4 2024
|
|
YTD
|
||||||||||||||||
|
(in millions, except EPS) |
Q4 2024 |
Q3 2024 |
Q4 2023 |
2024 |
2023 |
|
||||||||||||||||||
|
Total service revenues |
$ |
16,928 |
|
$ |
16,725 |
|
$ |
16,043 |
|
$ |
66,178 |
|
$ |
63,241 |
|
1.2 |
% |
|
5.5 |
% |
|
4.6 |
% |
|
|
Postpaid service revenues |
|
13,502 |
|
|
13,308 |
|
|
12,472 |
|
|
52,340 |
|
|
48,692 |
|
1.5 |
% |
|
8.3 |
% |
|
7.5 |
% |
|
|
Total revenues |
|
21,872 |
|
|
20,162 |
|
|
20,478 |
|
|
81,400 |
|
|
78,558 |
|
8.5 |
% |
|
6.8 |
% |
|
3.6 |
% |
|
|
Net income |
|
2,981 |
|
|
3,059 |
|
|
2,014 |
|
|
11,339 |
|
|
8,317 |
|
(2.5 |
)% |
|
48.0 |
% |
|
36.3 |
% |
|
|
Diluted EPS |
|
2.57 |
|
|
2.61 |
|
|
1.67 |
|
|
9.66 |
|
|
6.93 |
|
(1.5 |
)% |
|
53.9 |
% |
|
39.4 |
% |
|
|
Adjusted EBITDA |
|
7,916 |
|
|
8,243 |
|
|
7,224 |
|
|
31,864 |
|
|
29,428 |
|
(4.0 |
)% |
|
9.6 |
% |
|
8.3 |
% |
|
|
Core Adjusted EBITDA |
|
7,905 |
|
|
8,222 |
|
|
7,181 |
|
|
31,771 |
|
|
29,116 |
|
(3.9 |
)% |
|
10.1 |
% |
|
9.1 |
% |
|
|
Net cash provided by operating activities |
|
5,549 |
|
|
6,139 |
|
|
4,859 |
|
|
22,293 |
|
|
18,559 |
|
(9.6 |
)% |
|
14.2 |
% |
|
20.1 |
% |
|
|
Cash purchases of property and equipment, including capitalized interest |
|
2,212 |
|
|
1,961 |
|
|
1,587 |
|
|
8,840 |
|
|
9,801 |
|
12.8 |
% |
|
39.4 |
% |
|
(9.8 |
)% |
|
|
Adjusted Free Cash Flow |
|
4,084 |
|
|
5,162 |
|
|
4,305 |
|
|
17,032 |
|
|
13,586 |
|
(20.9 |
)% |
|
(5.1 |
)% |
|
25.4 |
% |
|
|
(1) |
Industry-leading claims are based on consensus expectations if results are not yet reported. |
Extending Overall Network Lead with Best Assets, Customer Centricity and Technology Leadership
T-Mobile is the overall network leader, with the company continuing to earn third-party recognition and win pivotal contracts that require the most rigorous standards and highest expectations of performance:
|
Note: See 5G device, coverage, and access details at T-Mobile.com. Ookla awards: Based on analysis by Ookla® of Speedtest Intelligence® data for the U.S., 2H 2024. Ookla trademarks used under license and reprinted with permission. Opensignal Awards: USA: Mobile Network Experience Report January 2025, based on independent analysis of mobile measurements recorded during the period September 1 - November 29, 2024. © 2025 Opensignal Limited. |
Strong Outlook for 2025 with Continued Industry-Leading Growth
T-Mobile’s 2025 guidance below excludes pending acquisitions of UScellular, Metronet, Lumos, and Vistar Media:
|
(in millions, except Postpaid net customer additions and Effective tax rate) |
FY 2025 Guidance |
|||
|
Postpaid net customer additions (thousands) |
5,500 |
|
6,000 |
|
|
Net income (1) |
N/A |
|
N/A |
|
|
Effective tax rate |
24% |
|
26% |
|
|
Core Adjusted EBITDA (2) |
$33,100 |
|
$33,600 |
|
|
Net cash provided by operating activities |
26,800 |
|
27,500 |
|
|
Capital expenditures (3) |
~9,500 |
|||
|
Adjusted Free Cash Flow |
17,300 |
|
18,000 |
|
|
(1) |
T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income, including, but not limited to, Income tax expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable. |
|
|
(2) |
Management uses Core Adjusted EBITDA as a measure to monitor the financial performance of Company operations, excluding the impact of lease revenues from related device financing programs. |
|
|
(3) |
Capital expenditures means cash purchases of property and equipment, including capitalized interest. |
Doing Well by Doing Good — The Un-carrier Way Leading the Industry in Connecting Students
T-Mobile remains committed to leveraging its network, scale, and resources to build a more connected and equitable future. Through its flagship philanthropic program, Project 10Million ("P10M"), T-Mobile is ensuring students have the tools they need to succeed in a digital world.
Through P10M, T-Mobile has connected over 6.3 million students nationwide and invested over $7.3 billion in devices and services.
Financial Results
For more details on T-Mobile’s Q4 2024 and full-year 2024 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at https://investor.t-mobile.com .
Earnings Call Information
Date/Time
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Access via Phone (audio only)
Please plan on accessing the call 10 minutes prior to the scheduled start time.
Access via Webcast
The earnings call will be broadcasted live and can be replayed via the Investor Relations website at https://investor.t-mobile.com .
Submit Questions via X
Send a post to @TMobileIR or @MikeSievert using $TMUS
T-Mobile Social Media
Investors and others should note that we announce material financial and operational information to our investors using our investor relations website ( https://investor.t-mobile.com ), newsroom website ( https://t-mobile.com/news ), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD (the @TMobileIR X account ( https://x.com/TMobileIR ), the @MikeSievert X account ( https://x.com/MikeSievert ) and our CEO’s LinkedIn account ( https://www.linkedin.com/in/sievert ), both of which Mr. Sievert also uses as a means for personal communications and observations, and the @TMobileCFO X account ( https://x.com/tmobilecfo ), and our CFO’s LinkedIn account ( https://www.linkedin.com/in/peter-osvaldik-3887394 ), both of which Mr. Osvaldik also uses as a means for personal communication and observations). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.
About T-Mobile US, Inc.
T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile, Metro by T-Mobile and Mint Mobile. For more information please visit: https://www.t-mobile.com .
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.’s future results of operations, are forward-looking statements. These forward-looking statements are generally identified by the words "anticipate," "believe," "estimate," "expect," "intend," "may," "could" or similar expressions.
Forward-looking statements are based on current expectations and assumptions, which are subject to risks and uncertainties and may cause actual results to differ materially from the forward-looking statements. Important factors that could affect future results and cause those results to differ materially from those expressed in the forward-looking statements include, among others, the following: competition, industry consolidation and changes in the market for wireless communications services and other forms of connectivity; criminal cyberattacks, disruption, data loss or other security breaches; our inability to timely adopt and effectively deploy network technology developments; our inability to effectively execute our digital transformation and drive customer and employee adoption of emerging technologies; our inability to retain or motivate key personnel, hire qualified personnel or maintain our corporate culture; system failures and business disruptions, allowing for unauthorized use of or interference with our network and other systems; the scarcity and cost of additional wireless spectrum, and regulations relating to spectrum use; the timing and effects of any pending and future acquisition, divestiture, investment, joint venture or merger involving us, including our inability to obtain any required regulatory approval necessary to consummate any such transactions or to achieve the expected benefits of such transactions; adverse economic, political or market conditions in the U.S. and international markets, including changes resulting from increases in inflation or interest rates, supply chain disruptions and impacts of geopolitical instability, such as the Ukraine-Russia and Israel-Hamas wars and further escalations thereof; our inability to successfully deliver new products and services; any disruption or failure of our third parties (including key suppliers) to provide products or services for the operation of our business; sociopolitical volatility and polarization and risks related to environmental, social and governance matters; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; our inability to maintain effective internal control over financial reporting; any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy, data protection and artificial intelligence; unfavorable outcomes of and increased costs from existing or future regulatory or legal proceedings; difficulties in protecting our intellectual property rights or if we infringe on the intellectual property rights of others; our offering of regulated financial services products and exposure to a wide variety of state and federal regulations; new or amended tax laws or regulations or administrative interpretations and judicial decisions affecting the scope or application of tax laws or regulations; our wireless licenses, including those controlled through leasing agreements, are subject to renewal and may be revoked; our exclusive forum provision as provided in our Certificate of Incorporation; interests of DT, our controlling stockholder, which may differ from the interests of other stockholders; our current and future stockholder return programs may not be fully utilized, and our share repurchases and dividend payments pursuant thereto may fail to have the desired impact on stockholder value; future sales of our common stock by DT and SoftBank and our inability to attract additional equity financing outside the United States due to foreign ownership limitations by the FCC; and other risks as disclosed in our most recent annual report on Form 10-K, and subsequent Forms 10-Q and other filings with the Securities and Exchange Commission. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements, except as required by law.
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures
(Unaudited)
This Press Release 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 accordance with GAAP. Reconciliations for the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below. T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP net income, including, but not limited to, Income tax expense and Interest expense. Adjusted EBITDA and Core Adjusted EBITDA should not be used to predict Net income as the difference between either of these measures and Net income is variable.
Adjusted EBITDA and Core Adjusted EBITDA are reconciled to Net income as follows:
|
|
Quarter |
|
Year Ended
|
|||||||||||||||||||||||||||||||||||||
|
(in millions) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
2023 |
|
2024 |
|||||||||||||||||||||
|
Net income |
$ |
1,940 |
|
|
$ |
2,221 |
|
|
$ |
2,142 |
|
|
$ |
2,014 |
|
|
$ |
2,374 |
|
|
$ |
2,925 |
|
|
$ |
3,059 |
|
|
$ |
2,981 |
|
|
$ |
8,317 |
|
|
$ |
11,339 |
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
Interest expense, net |
|
835 |
|
|
|
861 |
|
|
|
790 |
|
|
|
849 |
|
|
|
880 |
|
|
|
854 |
|
|
|
836 |
|
|
|
841 |
|
|
|
3,335 |
|
|
|
3,411 |
|
|
|
Other (income) expense, net |
|
(9 |
) |
|
|
(6 |
) |
|
|
(41 |
) |
|
|
(12 |
) |
|
|
(20 |
) |
|
|
8 |
|
|
|
(7 |
) |
|
|
(94 |
) |
|
|
(68 |
) |
|
|
(113 |
) |
|
|
Income tax expense |
|
631 |
|
|
|
717 |
|
|
|
705 |
|
|
|
629 |
|
|
|
764 |
|
|
|
843 |
|
|
|
908 |
|
|
|
858 |
|
|
|
2,682 |
|
|
|
3,373 |
|
|
|
Operating income |
|
3,397 |
|
|
|
3,793 |
|
|
|
3,596 |
|
|
|
3,480 |
|
|
|
3,998 |
|
|
|
4,630 |
|
|
|
4,796 |
|
|
|
4,586 |
|
|
|
14,266 |
|
|
|
18,010 |
|
|
|
Depreciation and amortization |
|
3,203 |
|
|
|
3,110 |
|
|
|
3,187 |
|
|
|
3,318 |
|
|
|
3,371 |
|
|
|
3,248 |
|
|
|
3,151 |
|
|
|
3,149 |
|
|
|
12,818 |
|
|
|
12,919 |
|
|
|
Stock-based compensation (1) |
|
173 |
|
|
|
155 |
|
|
|
152 |
|
|
|
164 |
|
|
|
140 |
|
|
|
147 |
|
|
|
143 |
|
|
|
156 |
|
|
|
644 |
|
|
|
586 |
|
|
|
Merger-related costs (gain), net (2) |
|
358 |
|
|
|
276 |
|
|
|
152 |
|
|
|
248 |
|
|
|
130 |
|
|
|
(9 |
) |
|
|
— |
|
|
|
— |
|
|
|
1,034 |
|
|
|
121 |
|
|
|
Legal-related (recoveries) expenses, net (3) |
|
(43 |
) |
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
15 |
|
|
|
1 |
|
|
|
(105 |
) |
|
|
(42 |
) |
|
|
(89 |
) |
|
|
(Gain) loss on disposal group held for sale |
|
(42 |
) |
|
|
17 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(25 |
) |
|
|
— |
|
|
|
Other, net (4) |
|
153 |
|
|
|
54 |
|
|
|
513 |
|
|
|
13 |
|
|
|
13 |
|
|
|
22 |
|
|
|
152 |
|
|
|
130 |
|
|
|
733 |
|
|
|
317 |
|
|
|
Adjusted EBITDA |
|
7,199 |
|
|
|
7,405 |
|
|
|
7,600 |
|
|
|
7,224 |
|
|
|
7,652 |
|
|
|
8,053 |
|
|
|
8,243 |
|
|
|
7,916 |
|
|
|
29,428 |
|
|
|
31,864 |
|
|
|
Lease revenues |
|
(147 |
) |
|
|
(69 |
) |
|
|
(53 |
) |
|
|
(43 |
) |
|
|
(35 |
) |
|
|
(26 |
) |
|
|
(21 |
) |
|
|
(11 |
) |
|
|
(312 |
) |
|
|
(93 |
) |
|
|
Core Adjusted EBITDA |
$ |
7,052 |
|
|
$ |
7,336 |
|
|
$ |
7,547 |
|
|
$ |
7,181 |
|
|
$ |
7,617 |
|
|
$ |
8,027 |
|
|
$ |
8,222 |
|
|
$ |
7,905 |
|
|
$ |
29,116 |
|
|
$ |
31,771 |
|
|
|
(1) |
Stock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense in the Consolidated Financial Statements. Additionally, certain stock-based compensation expenses associated with the merger with Sprint Corporation (the "Merger") have been included in Merger-related costs (gain), net. |
|
|
(2) |
Merger-related costs (gain), net, for the year ended December 31, 2024, includes the $100 million gain recognized for the extension fee previously paid by DISH associated with the DISH License Purchase Agreement. |
|
|
(3) |
|
Legal-related (recoveries) expenses, net consists of the settlement of certain litigation associated with the August 2021 cyberattack, net of insurance recoveries. |
|
(4) |
|
Other, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, including severance and related costs associated with the August 2023 workforce reduction, not directly attributable to the Merger, which are not reflective of T-Mobile’s core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA. |
Adjusted EBITDA represents earnings before Interest expense, net of Interest income, Income tax expense, Depreciation and amortization, stock-based compensation and certain expenses, gains and losses, which are not reflective of our ongoing operating performance ("Special Items"). Special Items include Merger-related costs (gain), net, (Gain) loss on disposal groups held for sale, certain legal-related recoveries and expenses, restructuring costs not directly attributable to the Merger (including severance), and other non-core gains and losses. Core Adjusted EBITDA represents Adjusted EBITDA less device lease revenues. Core Adjusted EBITDA and Adjusted EBITDA are non-GAAP financial measures utilized by T-Mobile’s management, including our chief operating decision maker, to monitor the financial performance of our operations and allocate resources of the Company as a whole. T-Mobile uses Core Adjusted EBITDA and Adjusted EBITDA as benchmarks to evaluate T-Mobile’s operating performance in comparison to its competitors. T-Mobile also uses Core Adjusted EBITDA internally as a measure to evaluate and compensate its personnel and management for their performance. Management believes analysts and investors use Core Adjusted EBITDA and Adjusted EBITDA as supplemental measures to evaluate overall operating performance and to facilitate comparisons with other wireless communications services companies because they are indicative of T-Mobile’s ongoing operating performance and trends by excluding the impact of Interest expense from financing, non-cash depreciation and amortization from capital investments, non-cash stock-based compensation, and Special Items. Management believes analysts and investors use Core Adjusted EBITDA because it normalizes for the transition in the company’s device financing strategy, by excluding the impact of device lease revenues from Adjusted EBITDA, to align with the related depreciation expense on leased devices, which is excluded from the definition of Adjusted EBITDA. Core Adjusted EBITDA and Adjusted EBITDA have limitations as analytical tools and should not be considered in isolation or as substitutes for Net income or any other measure of financial performance reported in accordance with U.S. Generally Accepted Accounting Principles ("GAAP").
T-Mobile US, Inc.
Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)
(Unaudited)
Adjusted Free Cash Flow is calculated as follows:
|
|
Quarter |
|
Year Ended
|
|||||||||||||||||||||||||||||||||||||
|
(in millions, except percentages) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
2023 |
|
2024 |
|||||||||||||||||||||
|
Net cash provided by operating activities |
$ |
4,051 |
|
|
$ |
4,355 |
|
|
$ |
5,294 |
|
|
$ |
4,859 |
|
|
$ |
5,084 |
|
|
$ |
5,521 |
|
|
$ |
6,139 |
|
|
$ |
5,549 |
|
|
$ |
18,559 |
|
|
$ |
22,293 |
|
|
|
Cash purchases of property and equipment, including capitalized interest |
|
(3,001 |
) |
|
|
(2,789 |
) |
|
|
(2,424 |
) |
|
|
(1,587 |
) |
|
|
(2,627 |
) |
|
|
(2,040 |
) |
|
|
(1,961 |
) |
|
|
(2,212 |
) |
|
|
(9,801 |
) |
|
|
(8,840 |
) |
|
|
Proceeds from sales of tower sites |
|
6 |
|
|
|
2 |
|
|
|
2 |
|
|
|
2 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
12 |
|
|
|
— |
|
|
|
Proceeds related to beneficial interests in securitization transactions |
|
1,345 |
|
|
|
1,309 |
|
|
|
1,131 |
|
|
|
1,031 |
|
|
|
890 |
|
|
|
958 |
|
|
|
984 |
|
|
|
747 |
|
|
|
4,816 |
|
|
|
3,579 |
|
|
|
Adjusted Free Cash Flow |
$ |
2,401 |
|
|
$ |
2,877 |
|
|
$ |
4,003 |
|
|
$ |
4,305 |
|
|
$ |
3,347 |
|
|
$ |
4,439 |
|
|
$ |
5,162 |
|
|
$ |
4,084 |
|
|
$ |
13,586 |
|
|
$ |
17,032 |
|
|
|
Net cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues) |
|
26.1 |
% |
|
|
27.7 |
% |
|
|
33.3 |
% |
|
|
30.3 |
% |
|
|
31.6 |
% |
|
|
33.6 |
% |
|
|
36.7 |
% |
|
|
32.8 |
% |
|
|
29.3 |
% |
|
|
33.7 |
% |
|
|
Adjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues) |
|
15.4 |
% |
|
|
18.3 |
% |
|
|
25.2 |
% |
|
|
26.8 |
% |
|
|
20.8 |
% |
|
|
27.0 |
% |
|
|
30.9 |
% |
|
|
24.1 |
% |
|
|
21.5 |
% |
|
|
25.7 |
% |
|
Effective November 1, 2024, following amendments to the company’s Equipment Installment Plan Sale and Service Receivable Sale arrangements, all cash proceeds associated with the sale of such receivables, a portion of which was previously recognized as Proceeds related to beneficial interests in securitization transactions within investing cash flows, were recognized as operating cash flows. These amendments did not have a net impact on Adjusted Free Cash Flow.
Adjusted Free Cash Flow - Net cash provided by operating activities less Cash purchases of property and equipment, plus Proceeds from sales of tower sites and Proceeds related to beneficial interests in securitization transactions. Adjusted Free Cash Flow is utilized by T-Mobile’s management, investors and analysts to evaluate cash available to pay debt, repurchase shares, pay dividends and provide further investment in the business.
Adjusted Free Cash Flow margin - Adjusted Free Cash Flow divided by Service revenues. Adjusted Free Cash Flow Margin is utilized by T-Mobile’s management, investors, and analysts to evaluate the company’s ability to convert service revenue efficiently into cash available to pay debt, repurchase shares and provide further investment in the business.
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 purchases of property and equipment, including capitalized interest |
|
(9,500 |
) |
|
|
(9,500 |
) |
|
|
Adjusted Free Cash Flow |
$ |
17,300 |
|
|
$ |
18,000 |
|
|
T-Mobile US, Inc.
Operating Measures
(Unaudited)
The following table sets forth company operating measures ARPA and ARPU:
|
|
Quarter |
|
Year Ended
|
|||||||||||||||||||||||||||
|
(in dollars) |
Q1 2023 |
|
Q2 2023 |
|
Q3 2023 |
|
Q4 2023 |
|
Q1 2024 |
|
Q2 2024 |
|
Q3 2024 |
|
Q4 2024 |
|
2023 |
|
2024 |
|||||||||||
|
Postpaid ARPA |
$ |
138.04 |
|
$ |
138.94 |
|
$ |
139.83 |
|
$ |
140.23 |
|
$ |
140.88 |
|
$ |
142.54 |
|
$ |
145.60 |
|
$ |
146.28 |
|
$ |
139.27 |
|
$ |
143.85 |
|
|
Postpaid phone ARPU |
|
48.63 |
|
|
48.84 |
|
|
48.93 |
|
|
48.91 |
|
|
48.79 |
|
|
49.07 |
|
|
49.79 |
|
|
49.73 |
|
|
48.83 |
|
|
49.35 |
|
|
Prepaid ARPU |
37.98 |
|
|
37.98 |
|
38.18 |
|
37.55 |
|
|
37.18 |
|
|
35.94 |
|
|
35.81 |
35.49 |
|
|
37.92 |
|
|
36.06 |
||||||
Postpaid Average Revenue Per Account ("ARPA") - Average monthly postpaid service revenue earned per account. Postpaid service revenues for the specified period divided by the average number of postpaid accounts during the period, further divided by the number of months in the period.
Average Revenue Per User ("ARPU") - Average monthly service revenue earned per customer. Service revenues for the specified period divided by the average number of customers during the period, further divided by the number of months in the period.
Postpaid phone ARPU excludes postpaid other customers and related revenues.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250128463619/en/
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