T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (2024)

  • T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (1)
  • T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (2)
  • T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (3)
  • T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (4)
  • T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (5)
  • T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (6)

Industry-Leading Customer Growth Fueled by Best Network and Value Combination(1)

  • Postpaid net account additions of 299 thousand in Q4 2023 — 1.3 million in 2023, industry best
  • Postpaid net customer additions of 1.6 million in Q4 2023 — 5.7 million in 2023, industry best
  • Postpaid phone net customer additions of 934 thousand in Q4 2023 — 3.1 million in 2023, industry best
  • Postpaid phone churn of 0.96% in Q4 2023 — 0.87% in 2023, lowest in company history
  • High Speed Internet net customer additions of 541 thousand in Q4 2023 — 2.1 million in 2023, industry best

Translating Customer Growth Into Industry-Leading Financial Growth

  • Service revenues of $16.0 billion in Q4 2023 — $63.2 billion in 2023, industry-leading growth of 3%
  • Postpaid service revenues of $12.5 billion in Q4 2023 — $48.7 billion in 2023, industry-leading growth of 6%
  • Net income of $2.0 billion in Q4 2023 — $8.3 billion in 2023, industry-leading growth of 221%
  • Diluted earnings per share (“EPS”) of $1.67 in Q4 2023 — $6.93 in 2023, industry-leading growth of 236%
  • Core Adjusted EBITDA(2) of $7.2 billion in Q4 2023 — $29.1 billion in 2023, industry-leading growth of 10%
  • Net cash provided by operating activities of $4.9 billion in Q4 2023 — $18.6 billion in 2023, industry-leading growth of 11%
  • Adjusted Free Cash Flow(2) of $4.3 billion in Q4 2023 — $13.6 billion in 2023, industry-leading growth of 77%
  • Returned $14.0 billion to stockholders in 2023, including repurchases of $13.2 billion of common stock and first quarterly dividend payment of $747 million

T-Mobile Continues Reign as Overall Network Leader with Largest 5G Footprint Covering 98% of Americans

  • 300 million people covered by Ultra Capacity 5G and more 5G square miles than AT&T and Verizon combined
  • Clean sweep across every category for overall network performance from Ookla and Opensignal

Strong Outlook for 2024

  • Core Adjusted EBITDA(2) is expected to grow approximately 9% at the mid-point
  • Net cash provided by operating activities is expected to grow approximately 18% at the mid-point and Adjusted Free Cash Flow(2) is expected to grow approximately 22% at the mid-point

Bellevue, WA — January 25, 2024 — T-Mobile US, Inc. (NASDAQ: TMUS) reported fourth quarter and full-year 2023 results today, delivering industry-best growth in service revenues, profitability and cash flow in 2023, enabling the Un-carrier to continue executing its best-in-class capital return program delivering $14.0 billion to stockholders in 2023. The company also effectively completed its historic merger integration, and cemented itself as the nationwide overall network leader. Combined with its established value leadership, the company delivered best-in-class customer growth in 2023, including the highest postpaid phone gross additions and the lowest annual churn rate in company history. “This was a historic year for T-Mobile, with record outcomes across nearly every metric and industry-leading customer results – including our highest share of postpaid phone net adds since the merger and best-in-class growth in service revenues, profitability and cash flow – all while effectively completing the largest, most successful telecom integration in the world,” said Mike Sievert, CEO of T-Mobile. “What’s really exciting is that while we’ve delivered fantastic results, we’ve also got room to run. Thanks to the unmatched value and network leadership that we’ve built, we’re entering a phase of enormous value creation with a plan to deliver sustained customer and financial growth leadership. This is just the beginning of the next chapter for the Un-carrier.”

T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (7)

Industry-Leading Customer Growth Fueled by Best Network and Value Combination(1)

  • Postpaid net account additions were 299 thousand in Q4 2023 and 1.3 million in 2023.
  • Postpaid net customer additions were 1.6 million in Q4 2023 and 5.7 million in 2023.
  • Postpaid phone net customer additions were 934 thousand in Q4 2023 and 3.1 million in 2023. Postpaid phone churn was 0.96% in Q4 2023 and 0.87% in 2023.
  • Prepaid net customer additions were 53 thousand in Q4 2023 and 282 thousand in 2023. Prepaid churn was 2.86% in Q4 2023 and 2023 churn of 2.76% was the lowest in company history.
  • High Speed Internet net customer additions were 541 thousand in Q4 2023 and 2.1 million in 2023, the highest in company history. T-Mobile ended the year with 4.8 million High Speed Internet customers.
  • Total net customer additions were 1.6 million in Q4 2023 and 5.9 million in 2023. Total customer connections increased to a record high of 119.7 million.

Translating Customer Growth Into Industry-Leading Financial Growth(1)

  • Total service revenues increased 3% year-over-year to $16.0 billion in Q4 2023 and 3% year-over-year to $63.2 billion in 2023, which included Postpaid service revenue growth of 6% year-over-year in Q4 2023 and 6% growth year-over-year in 2023.
  • Net income increased 36% year-over-year to $2.0 billion in Q4 2023 and increased 221% year-over-year to $8.3 billion in 2023, which included Merger-related costs, net of tax, of $775 million. Diluted EPS increased year-over-year to $1.67 per share in Q4 2023 and increased year-over-year to $6.93 per share in 2023. Diluted EPS also reflected the impact of 48.8 million shares issued to SoftBank Group in Q4 2023.
  • Core Adjusted EBITDA increased 9% year-over-year to $7.2 billion in Q4 2023 and increased 10% year-over-year to $29.1 billion in 2023.
  • Net cash provided by operating activities increased 12% year-over-year to $4.9 billion in Q4 2023 and increased 11% year-over-year to $18.6 billion in 2023, which included cash payments for Merger-related costs of $416 million in Q4 2023 and $2.0 billion in 2023.
  • Cash purchases of property and equipment, including capitalized interest, decreased 53% year-over-year to $1.6 billion in Q4 2023 and decreased 30% year-over-year to $9.8 billion in 2023.
  • Adjusted Free Cash Flow increased 97% year-over-year to $4.3 billion in Q4 2023 and increased 77% year-over-year to $13.6 billion in 2023, which included cash payments for Merger-related costs of $416 million in Q4 2023 and $2.0 billion in 2023.
  • Stockholder Returns included 15.5million shares of common stock repurchased for $2.2billion in Q4 2023, and 92.9million shares repurchased for $13.2 billion in 2023, with 114.3million cumulative shares repurchased for $16.2 billion as of December 31, 2023. The remaining authorization for stock repurchases and dividends through December 2024 is $16.0 billion, including the next quarterly cash dividend, which will be payable on March 14, 2024.

T-Mobile Continues Reign as Overall Network Leader with Largest 5G Footprint Covering 98% of Americans
T-Mobile’s Ultra Capacity 5G network covers more than 300 million people, over three times the square miles of AT&T and two times Verizon. Total 5G covers more than 330 million people and more square miles than AT&T and Verizon combined.

T-Mobile’s 5G leadership has translated into overall network leadership, while 5G is increasingly becoming the overall network experience for customers. The Un-carrier continues its third-party report winning streak for overall network and 5G performance:

  • Ookla: In its latest Speedtest Global Index Market Analysis, T-Mobile beat the competition, winning every single category for overall network in every quarter of 2023, including fastest provider, lowest latency, most consistent and best mobile video. The Company also remained undefeated for 5G performance for the sixth quarter in a row, including fastest 5G performance and 5G consistency.
  • Opensignal: In its latest Global Mobile Network Experience Report, T-Mobile ranked first for all overall network experience metrics including download and upload speed experience, along with consistent quality, video, live video and games experience. The Un-carrier also ranked first in several 5G categories including 5G download speeds, 5G coverage experience, and 5G availability.

Strong Outlook for 2024

  • Postpaid net customer additions are expected to be between 5.0 million and 5.5 million, expected to lead the industry for the 10th consecutive year.
  • Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $31.3 billion and $31.9 billion, up 9% year-over-year at the midpoint.
  • Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $21.5 billion and $22.3 billion, up 18% at the mid-point.
  • Cash purchases of property and equipment, including capitalized interest, are expected to be between $8.6 billion and $9.4 billion.
  • Adjusted Free Cash Flow, including payments for Merger-related costs, is expected to be between $16.3 billion and $16.9 billion, up approximately 22% year-over-year at the mid-point. Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization.

Doing Good — The Un-carrier Way — Industry Leader in Building a More Connected and Sustainable Future
T-Mobile continues to stay true to its commitment to use its network, scale and resources for good, building a more connected, equitable and sustainable future:

  • Since launching Project 10Million in 2020, T-Mobile has focused on bringing critical connectivity to underserved students nationwide. Through the end of 2023, T-Mobile has provided $6.4 billion in services to connect nearly 6 million students across the United States through this project and other education initiatives.
  • The company partnered with Welcome.US to provide service through Metro by T-Mobile to refugees entering the U.S. as part of a multi-year commitment of 200,000 lines.
  • T-Mobile was the first U.S. wireless carrier to set a net-zero emissions target that has been validated by the Science Based Targets initiative — with a goal to achieve net-zero emissions across the company’s entire footprint by 2040.

Financial Results
For more details on T-Mobile’s Q4 2023 and full-year 2023 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

  • Thursday, January 25, 2024, at 4:30 p.m. (ET)

Pre-registration link for dial-in access
Participants can pre-register for the conference call here in order to receive dial-in information.

Access via Phone (audio only)
Please plan on accessing the call 10 minutes prior to the scheduled start time.

  • Toll Free: 1-888-222-5806
  • International: 1-412-902-6516

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 Twitter
Send a tweet to @TMobileIR or @MikeSievert using $TMUS

Contact Information

  • Media Relations: mediarelations@t-mobile.com
  • Investor Relations: investor.relations@t-mobile.com

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 Twitter account (https://twitter.com/TMobileIR), the @MikeSievert Twitter account (https://twitter.com/MikeSievert), which Mr. Sievert also uses as a means for personal communications and observations, and the @TMobileCFO Twitter Account (https://twitter.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 and Metro by T-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 take advantage of technological developments on a timely basis; 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 difficulties in maintaining multiple billing systems following the Merger (as defined below) and any unanticipated difficulties, disruption, or significant delays in our long-term strategy to convert Sprint’s legacy customers onto T-Mobile’s billing platforms; the impacts of the actions we have taken and conditions we have agreed to in connection with the regulatory proceedings and approvals of the Transactions (as defined below), including the acquisition by DISH Network Corporation (“DISH”) of the prepaid wireless business operated under the Boost Mobile and Sprint prepaid brands (excluding the Assurance brand Lifeline customers and the prepaid wireless customers of Shenandoah Personal Communications Company LLC and Swiftel Communications, Inc.), including customer accounts, inventory, contracts, intellectual property and certain other specified assets, and the assumption of certain related liabilities (collectively, the “Prepaid Transaction”), the complaint and proposed final judgment agreed to by us, Deutsche Telekom AG (“DT”), Sprint Corporation, now known as Sprint LLC (“Sprint”), SoftBank Group Corp. (“SoftBank”) and DISH with the U.S. District Court for the District of Columbia, which was approved by the Court on April 1, 2020, the proposed commitments filed with the Secretary of the Federal Communications Commission (“FCC”), which we announced on May 20, 2019, certain national security commitments and undertakings, and any other commitments or undertakings entered into, including, but not limited to, those we have made to certain states and nongovernmental organizations (collectively, the “Government Commitments”), and the challenges in satisfying the Government Commitments in the required time frames and the significant cumulative costs incurred in tracking and monitoring compliance over multiple years; 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 war and Israel-Hamas war; our inability to manage the ongoing commercial services arrangements entered into in connection with the Prepaid Transaction, and known or unknown liabilities arising in connection therewith; the timing and effects of any future acquisition, divestiture, investment, or merger involving us; any disruption or failure of our third parties (including key suppliers) to provide products or services for the operation of our business; our inability to fully realize the synergy benefits from the merger (the "Merger") with Sprint, pursuant to the Business Combination Agreement with Sprint and the other parties named therein (as amended, the "Business Combination Agreement") and the other transactions contemplated by the Business Combination Agreement (collectively, the "Transactions") in the expected time frame; our substantial level of indebtedness and our inability to service our debt obligations in accordance with their terms or to comply with the restrictive covenants contained therein; changes in the credit market conditions, credit rating downgrades or an inability to access debt markets; restrictive covenants including the agreements governing our indebtedness and other financings; the risk of future material weaknesses we may identify, or any other failure by us to maintain effective internal controls, and the resulting significant costs and reputational damage; any changes in regulations or in the regulatory framework under which we operate; laws and regulations relating to the handling of privacy and data protection; unfavorable outcomes of and increased costs from existing or future regulatory or legal proceedings; 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; 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; the dollar amount authorized for our 2023-2024 Stockholder Return Program may not be fully utilized, and our share repurchases and dividend payments pursuant thereto may fail to have the desired impact on stockholder value and other risks as disclosed in our most recent annual report on Form 10-K, 10-Q and other filings with the Securities and Exchange Commission (the “SEC”).

For our environmental, climate, or other “Environmental, Social, and Governance (ESG)” targets, goals and commitments outlined in this communication, we face additional risks and uncertainties, including unexpected delays, difficulties, and expenses in executing against such targets, goals and commitments, as well as changes in laws or regulations affecting us, such as changes in cybersecurity, data privacy, environmental, safety and health laws, and other risks as disclosed in our most recent annual report on Form 10-K, 10-Q and other filings with the SEC. 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.

In addition, some of the statements contained in this communication may rely on third-party information and projections that management believes to be reputable; however, we do not independently verify or audit this information. This communication also contains ESG-related statements based on hypothetical scenarios and assumptions as well as estimates that are subject to a high level of uncertainty, and these statements should not necessarily be viewed as being representative of current or actual risk or performance, or forecasts of expected risk or performance. In addition, historical, current, and forward-looking environmental and social-related statements may be based on standards for measuring progress that are still developing, and internal controls and processes that continue to evolve. Forward-looking and other statements in this communication may also address our corporate responsibility and sustainability progress, plans, and goals, and the inclusion of such statements is not an indication that these contents are necessarily material for the purposes of complying with or reporting pursuant to the U.S. federal securities laws and regulations, even if we use the word “material” or “materiality” in this communication in relation to those statements. Website references throughout this communication are provided for convenience only, and the content on the referenced websites is not incorporated by reference into this communication.

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As an expert in the field, it's evident that T-Mobile has demonstrated exceptional performance and growth in various aspects of its business. The information provided showcases their industry-leading customer growth, financial achievements, and network dominance. Now, let's break down the concepts used in the article:

  1. Postpaid Net Account Additions:

    • Q4 2023: 299 thousand
    • Full-year 2023: 1.3 million
    • Industry best performance, highlighting strong growth in postpaid accounts.
  2. Postpaid Net Customer Additions:

    • Q4 2023: 1.6 million
    • Full-year 2023: 5.7 million
    • Industry best, emphasizing sustained growth in postpaid customer base.
  3. Postpaid Phone Net Customer Additions:

    • Q4 2023: 934 thousand
    • Full-year 2023: 3.1 million
    • Industry best performance, especially in the crucial postpaid phone segment.
  4. Postpaid Phone Churn:

    • Q4 2023: 0.96%
    • Full-year 2023: 0.87%
    • Lowest in the company's history, indicating high customer retention.
  5. High-Speed Internet Net Customer Additions:

    • Q4 2023: 541 thousand
    • Full-year 2023: 2.1 million
    • Industry best, underlining significant growth in high-speed internet subscribers.
  6. Financial Growth:

    • Q4 2023 Service Revenues: $16.0 billion
    • Full-year 2023 Service Revenues: $63.2 billion
    • Industry-leading growth of 3%, with specific focus on postpaid service revenues showing 6% growth.
  7. Net Income:

    • Q4 2023: $2.0 billion
    • Full-year 2023: $8.3 billion
    • Industry-leading growth of 221%, demonstrating strong profitability.
  8. Earnings per Share (EPS):

    • Q4 2023: $1.67
    • Full-year 2023: $6.93
    • Industry-leading growth of 236%, reflecting impressive earnings per share.
  9. Core Adjusted EBITDA:

    • Q4 2023: $7.2 billion
    • Full-year 2023: $29.1 billion
    • Industry-leading growth of 10%, highlighting operational efficiency.
  10. Net Cash and Free Cash Flow:

    • Q4 2023 Net Cash: $4.9 billion
    • Full-year 2023 Free Cash Flow: $13.6 billion
    • Industry-leading growth of 11% and 77% respectively, indicating strong financial health.
  11. Stockholder Returns:

    • Returned $14.0 billion to stockholders in 2023, including repurchases and dividends.
  12. Network Leadership:

    • Largest 5G Footprint covering 98% of Americans.
    • Ultra Capacity 5G reaching 300 million people.
    • Recognition from Ookla and Opensignal for overall network performance.
  13. Outlook for 2024:

    • Expected growth in Postpaid Net Customer Additions, Core Adjusted EBITDA, Net Cash, and Free Cash Flow.
  14. Social Responsibility:

    • T-Mobile's commitment to social causes, including Project 10Million for connectivity to underserved students and a net-zero emissions target.

In conclusion, T-Mobile's comprehensive report indicates a robust performance across customer growth, financial metrics, and network leadership, positioning the company as a major player in the industry.

T-Mobile Delivers Industry-Leading Growth in Customers, Service Revenues, Profitability and Cash Flow in 2023, Setting Up Strong 2024 Outlook - T-Mobile Newsroom (2024)
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