\nT-Mobile CEO Mike Sievert appeared at the UBS Global Media and Communications Conference and attended a fireside chat with UBS\u2019s John Hodulik today. Sievert expressed confidence in the company\u2019s full-year guidance, with a strong holiday Q4 season, sharing that switching, which remains as robust as ever, continues to offer an enormous opportunity for T-Mobile. At the conference, Sievert had shared that the company expects to deliver on its full year postpaid phone net additions guidance of 3 million, and full year postpaid ARPA growth of around 3%.<\/p>\n
\n\u201cIt was great to be back at UBS sharing my continued optimism around T-Mobile\u2019s growth plans and that our Q4 and year are very much on track,\u201d said Sievert. \u201cMy comments explaining normal seasonal trends in Q4 were misinterpreted by one media outlet as a warning, so I want to make sure there is no investor confusion. To be clear, our Q4 is trending at least in line with prior expectations, maybe better. We continue to expect to deliver about 3 million postpaid phone net additions for the year, or more. Q3 was a fantastic growth quarter for T-Mobile and our growth momentum continues in Q4.”<\/p>\n
\nSievert also discussed opportunities for additional growth in under-penetrated areas such as SMRA, enterprise and large governments, including having the highest share of switchers in Q3 since the merger. The company also sees opportunity to further win in enterprise and large governments with its exciting solutions that will further create TAM.<\/p>\n
\nHe also discussed the additional runway the company sees to deepen relationships with customers and grow both ARPA and ARPU from customers continuing to self-select up the rate plan, with more than double the incremental customers or over 60% loading onto premium plans than those currently on premium.<\/p>\n
\nSievert recapped the company\u2019s strategies shared during its recent Capital Markets Day to continue to deliver customer love at scale through its ongoing digital and technology transformation, underscoring the enormous potential for its T-Life app to continue to create a more seamless and immersive customer experience.<\/p>\n
\nSome of the reiterated multi-year expectations include:<\/p>\n
- \n
- \nT-Mobile continues to expect to deliver industry-leading customer growth<\/p>\n<\/li>\n
- \nIndustry-leading service revenue growth (~5% CAGR through 2027), Adjusted EBITDA growth (~7% CAGR through 2027), and Adjusted Free Cash Flow conversion (~25% in 2027)<\/p>\n<\/li>\n
- \nBusiness plan supports ~$80B in capacity for investments and shareholder returns through 2027<\/p>\n<\/li>\n<\/ul>\n
About T-Mobile US, Inc.<\/b><\/p>\n
\n
\n \n (in millions)<\/b><\/p>\n<\/td>\n
\n \n Year Ended
\n
December 31, 2023<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \nNet income<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n8,317<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjustments:<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nInterest expense, net<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,335<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther income, net<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(68<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nIncome tax expense<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n2,682<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOperating income<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n14,266<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nDepreciation and amortization<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n12,818<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nStock-based compensation (1)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n644<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nMerger-related costs<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n1,034<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLegal-related recoveries, net (2)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(42<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nGain on disposal group held for sale<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(25<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nOther, net (3)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n733<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted EBITDA<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n29,428<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nLease revenues<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(312<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCore Adjusted EBITDA<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n29,116<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\n
\n \n \n(1)<\/p>\n<\/td>\n
\n \n \nStock-based compensation includes payroll tax impacts and may not agree to stock-based compensation expense on the consolidated financial statements. Additionally, certain stock-based compensation expenses associated with the Sprint Merger have been included in Merger-related costs.<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(2)<\/p>\n<\/td>\n
\n \n \nLegal-related recoveries, net, consists of the settlement of certain litigation associated with the August 2021 cyberattack and is presented net of insurance recoveries.<\/p>\n<\/td>\n<\/tr>\n
\n \n \n(3)<\/p>\n<\/td>\n
\n \n \nOther, net, primarily consists of certain severance, restructuring and other expenses, gains and losses, including severance and related costs associated with the August 2023 workforce reduction, not directly attributable to the Merger which are not reflective of T-Mobile\u2019s core business activities and are, therefore, excluded from Adjusted EBITDA and Core Adjusted EBITDA.<\/p>\n
\n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
T-Mobile US, Inc.
\n
R<\/b>econciliation of Non-GAAP Financial Measures to GAAP Financial Measures (continued)
\n
<\/b>(Unaudited)<\/b><\/p>\n\nAdjusted Free Cash Flow is calculated as follows:<\/p>\n
\n
\n \n (in millions)<\/b><\/p>\n<\/td>\n
\n \n Year Ended
\n
December 31, 2023<\/b><\/p>\n<\/td>\n<\/tr>\n\n \n \nNet cash provided by operating activities<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n18,559<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCash purchases of property and equipment, including capitalized interest<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(9,801<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nProceeds from sales of tower sites<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n12<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nProceeds related to beneficial interests in securitization transactions<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n4,816<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted Free Cash Flow<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n13,586<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
\nThe guidance range for Adjusted Free Cash Flow and Adjusted Free Cash Flow CAGR from 2023-2027 are calculated as follows:<\/p>\n
\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n FY 2027<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n (in millions, except percentages)<\/b><\/p>\n<\/td>\n
\n \n Guidance Range<\/b><\/p>\n<\/td>\n<\/tr>\n
\n \n \nNet cash provided by operating activities<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n24,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n25,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nCash purchases of property and equipment, including capitalized interest<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n(9,000<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n(10,000<\/p>\n<\/td>\n
\n \n)<\/p>\n<\/td>\n<\/tr>\n
\n \n \nProceeds related to beneficial interests in securitization transactions (1)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n3,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n4,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted Free Cash Flow<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n18,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n19,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNet cash provided by operating activities CAGR from 2023-2027 (2)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n7.2<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted Free Cash Flow CAGR from 2023-2027 (2)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n8.0<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nService revenues<\/p>\n<\/td>\n
\n \n \n$<\/p>\n<\/td>\n
\n \n75,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n$<\/p>\n<\/td>\n
\n \n76,000<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n<\/tr>\n
\n \n \nNet cash provided by operating activities margin (Net cash provided by operating activities divided by Service revenues) (2)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n32.5<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n
\n \n \nAdjusted Free Cash Flow margin (Adjusted Free Cash Flow divided by Service revenues) (2)<\/sup><\/p>\n<\/td>\n
\n \n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n\u00a0<\/p>\n<\/td>\n
\n \n24.5<\/p>\n<\/td>\n
\n \n%<\/p>\n<\/td>\n<\/tr>\n<\/table>\n
![\"Logo\"](\"https:\/\/mms.businesswire.com\/media\/20241209209669\/en\/1736286\/3\/T-Mobile_New_Logo_2023.jpg\"){kind=logo}
<\/td>\n<\/tr>\n