1.9 Million Customer Nets, Record-Low Churn of 1.27%, Net Income
of $225 Million, 12% Service Revenue Growth and 36% Adjusted EBITDA
Growth Year-over-Year
Company Website:
http://www.t-mobile.com
BELLEVUE, Wash. -- (Business Wire)
T-Mobile US, Inc. (NASDAQ: TMUS):
Second Quarter 2016 Highlights:
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Customer momentum continues for the fastest growing wireless company
in America:
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1.9 million total net adds - 13th consecutive quarter
of over 1 million
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890,000 branded postpaid net adds
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646,000 branded postpaid phone net adds - led industry in branded
postpaid phone net adds for the 10th consecutive quarter
-
476,000 branded prepaid net adds - up 167% YoY due to strong
growth from MetroPCS
-
Record-low branded postpaid phone churn of 1.27% - down 6 bps QoQ
and 5 bps YoY
-
Customer growth translating into industry-leading financial growth:
-
$6.9 billion service revenues, up 12.1% YoY
-
T-Mobile led industry in YoY service revenue percentage growth
for 9th consecutive quarter
-
$9.2 billion total revenues, up 12.8% YoY
-
T-Mobile led industry in YoY total revenue percentage growth
for 12th time in past 13 quarters
-
Net income of $225 million and earnings per share of $0.25
-
$2.5 billion Adjusted EBITDA, up 35.6% YoY
-
36% Adjusted EBITDA margin, up from 30% in the second quarter
of 2015
-
Branded postpaid phone ARPU of $47.11, up 1.9% QoQ and generally
stable adjusting for Data Stash
-
Continued improvements in America’s fastest and fastest growing 4G LTE
network:
-
Fastest 4G LTE network in the US - leading in average download
speeds for 10th consecutive quarter
-
311 million POPs covered with 4G LTE
-
“Extended Range LTE” covers more than 200 million POPs across 350
market areas
-
T-Mobile again ranked highest in Total Ownership Experience by J.D.
Power
-
Raising customer outlook and narrowing Adjusted EBITDA target for 2016:
-
Guidance range for branded postpaid net adds increased to 3.4 to
3.8 million from 3.2 to 3.6 million
-
Narrowing Adjusted EBITDA target to $9.8 to $10.1 billion from
$9.7 to $10.2 billion
-
Guidance includes aggregate impact of leasing and Data Stash
now expected to be $0.8 to $1.0 billion, and the $0.6 billion
spectrum gain in the first quarter of 2016
-
Maintaining guidance of $4.5 to $4.8 billion of cash capital
expenditures
T-Mobile US, Inc. (NASDAQ: TMUS) today reported second quarter 2016
results which again showed that the Company continues to dramatically
outperform the industry in both customer and financial results. In the
second quarter of 2016, T-Mobile added 1.9 million total net customers
while delivering 12% growth in service revenue and 36% growth in
Adjusted EBITDA year-over-year.
“We outperformed the competition again on every key metric, while
delivering the best postpaid phone churn numbers in our history!” said
John Legere, President and CEO of T-Mobile. “Quarter after quarter this
team continues to deliver results that are the best in the business
despite the competition's best efforts to compete.”
Industry-Leading Customer Growth
In the second quarter of 2016, T-Mobile added 1.9 million net customers,
bringing its total customer count to more than 67 million. This was the
thirteenth consecutive quarter in which the Company has generated more
than 1 million net customer additions. Since the launch of the first
Un-carrier initiative in the first quarter of 2013, T-Mobile has added
more than 24 million customers on a pro forma combined basis.
T-Mobile saw ongoing strength in branded postpaid customers with net
additions of 890,000 in the second quarter of 2016. The sequential and
year-over-year decline was primarily due to the absence of iconic device
launches in the period. Branded postpaid phone net customer additions
were 646,000 in the second quarter of 2016, and T-Mobile led the
industry in this metric for the 10th consecutive quarter.
Branded prepaid net customer additions in the second quarter of 2016
were 476,000, up 167% year-over-year primarily driven by MetroPCS.
Wholesale net customer additions were 515,000 in the second quarter of
2016.
Branded postpaid phone churn was a record-low 1.27% in the second
quarter of 2016, down 6 basis points compared to 1.33% in the first
quarter of 2016 and down 5 basis points compared to 1.32% in the second
quarter of 2015. Branded prepaid churn was 3.91% in the second quarter
of 2016, compared to 3.84% in the first quarter of 2016 and 4.93% in the
second quarter of 2015.
Industry-Leading Financial Growth
In addition to strong customer growth, T-Mobile delivered outstanding
financial results and once again led the industry in year-over-year
percentage growth in service revenue, total revenue, and Adjusted EBITDA
in the second quarter of 2016.
Service revenues for the second quarter of 2016 grew by 12%
year-over-year, primarily due to continued growth in the Company’s
customer base. This marks the ninth consecutive quarter that T-Mobile
has led the industry in year-over-year service revenue percentage
growth. T-Mobile’s total revenues for the second quarter of 2016 grew by
13% year-over-year, which also led the industry for the twelfth time in
the past thirteen quarters.
Branded postpaid phone Average Revenue per User (ARPU) of $47.11 in the
second quarter of 2016 was up 1.9% sequentially and down 2.2%
year-over-year. Excluding the impact of Data Stash, branded postpaid
phone ARPU was generally stable both sequentially and year-over-year as
continued strategic focus on family plan penetration, promotional
activity, and Un-carrier initiatives were offset by higher data attach
rates and growth in insurance programs revenue. Branded postpaid Average
Billings per User (ABPU) was $62.59 in the second quarter of 2016.
Excluding the impact of Data Stash, branded postpaid ABPU was also
generally stable both sequentially and year-over-year. Branded postpaid
customers per account grew to 2.64 in the second quarter of 2016, up
from 2.43 in the second quarter of 2015.
In the second quarter of 2016, Adjusted EBITDA increased by 36%
year-over-year to $2.464 billion, due to growth in the customer base and
lower losses on equipment, partially offset by higher SG&A expenses due
to strategic investments to support the growing customer base, and a
higher non-cash impact of Data Stash. The Adjusted EBITDA margin was 36%
for the second quarter of 2016, compared to 30% in the prior year.
The aggregate impact from leasing and Data Stash on Adjusted EBITDA in
the second quarter of 2016 was $279 million, including lease revenues of
$367 million offset by the non-cash impact from Data Stash of $88
million.
Net income amounted to $225 million, down from $479 million in the first
quarter of 2016 and down from $361 million in the second quarter of
2015. Earnings per share (EPS) in the second quarter of 2016 was $0.25,
compared to EPS of $0.56 in the first quarter of 2016 and $0.42 in the
second quarter of 2015. The sequential decline in EPS was due to the
after-tax impact of $0.46 related to the spectrum gain included in EPS
for the first quarter of 2016. The year-over-year decline was primarily
due to higher interest expense and lower interest income in the second
quarter of 2016, and lower income tax expense in the second quarter of
2015, partially offset by a higher operating income in the second
quarter of 2016.
Net cash provided by operating activities was $1.768 billion in the
second quarter of 2016, up from $1.161 billion in the second quarter of
2015. Free cash flow was $419 million in the second quarter of 2016,
compared to an outflow of $30 million in the second quarter of 2015.
Adjusted free cash flow was $485 million in the second quarter of 2016
compared to $73 million in the second quarter of 2015.
Continued Improvements in Fastest 4G LTE Network
T-Mobile continued to make improvements to its 4G LTE network to support
customer growth in the second quarter of 2016 and beyond. These
improvements enabled T-Mobile to once again be the fastest 4G LTE
network in the country based on download speeds from millions of
user-generated tests. This is the tenth consecutive quarter that the
Company has held that title.
Currently, T-Mobile provides 4G LTE coverage to 311 million people. The
Company has deployed Wideband LTE nationwide to add capacity to
America’s Fastest LTE Network and is expanding Extended Range LTE to
enhance coverage and in-building performance. Extended Range LTE, which
operates on the Company’s low-band 700 MHz A-Block spectrum, currently
covers more than 200 million people in 350 market areas. In the first
and second quarters of 2016, T-Mobile entered into agreements with
multiple parties to acquire additional 700 MHz A-Block spectrum
licenses. These acquisitions will increase T-Mobile’s total low-band
spectrum holdings from 210 million POPs to 269 million POPs upon closing.
The Company is a qualified bidder in the 600 MHz broadcast incentive
auction.
Cash capital expenditures reflect T-Mobile’s continued investment in the
expansion of its 4G LTE network. In the second quarter of 2016, cash
capital expenditures were $1.3 billion, in line with $1.3 billion in the
first quarter of 2016 and up from $1.2 billion in the second quarter of
2015.
Highest Ranking in Total Ownership Experience
This week, T-Mobile was again ranked highest in Total Ownership
Experience among full service U.S. wireless companies by J.D. Power,
improving across the board in all metrics including Network Quality,
Cost of Service, Account Management, Offerings & Promotions, Wireless
Devices, Purchase Process and Customer Service.
Raising Customer Outlook and Narrowing Adjusted EBITDA Target for 2016
T-Mobile expects to drive further customer momentum while delivering
strong growth in Adjusted EBITDA and free cash flow in 2016.
Branded postpaid net customer additions for full-year 2016 are now
expected to be between 3.4 and 3.8 million, an increase from the
previous guidance range of 3.2 to 3.6 million.
For the full-year 2016, T-Mobile now expects Adjusted EBITDA to be in
the range of $9.8 to $10.1 billion, narrowing the previous guidance
range of $9.7 to $10.2 billion. This guidance includes the aggregate
impact from leasing and Data Stash now expected to be approximately $0.8
to $1.0 billion, and the spectrum gain of $0.6 billion recognized in the
first quarter of 2016.
Cash capital expenditures for full-year 2016 are expected to be in the
range of $4.5 to $4.8 billion, unchanged from previous guidance.
Quarterly Financial Results
For more details on T-Mobile’s second quarter 2016 financial results,
including the Investor Factbook with detailed financial tables and
reconciliations of certain historical non-GAAP measures disclosed in
this release to the most comparable measures under GAAP, please visit
T-Mobile US, Inc.'s Investor Relations website at http://investor.T-Mobile.com.
T-Mobile Social Media
Investors and others should note that the Company announces material
financial and operational information to its investors using its
investor relations website, press releases, SEC filings and public
conference calls and webcasts. The Company also intends to use the
@TMobileIR Twitter account (https://twitter.com/TMobileIR)
and the @JohnLegere Twitter (https://twitter.com/JohnLegere),
Facebook and Periscope accounts, which Mr. Legere also uses as a means
for personal communications and observations, as means of disclosing
information about the Company and its services and for complying with
its disclosure obligations under Regulation FD. 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 the Company’s press releases, SEC filings and public
conference calls and webcasts. The social media channels that the
Company intends to use as a means of disclosing the information
described above may be updated from time to time as listed on the
Company’s investor relations website.
About T-Mobile US, Inc.:
As America's Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining
the way consumers and businesses buy wireless services through leading
product and service innovation. The Company's advanced nationwide 4G LTE
network delivers outstanding wireless experiences to 67.4 million
customers who are unwilling to compromise on quality and value. Based in
Bellevue, Washington, T-Mobile US provides services through its
subsidiaries and operates its flagship brands, T-Mobile and MetroPCS.
For more information, please visit http://www.t-mobile.com
or join the conversation on Twitter using $TMUS.
Q2 2016 Earnings Call, Livestream and Webcast
Access Information
Access via Phone (audio only): |
Date:
|
|
|
|
|
Wednesday, July 27, 2016
|
Time:
| | | | |
10:30 a.m. (EDT)
|
Call-in Numbers:
| | | | |
800-432-9830
|
International:
| | | | |
719-234-7318
|
Participant Passcode:
| | | | |
5957614
|
Please plan on accessing the earnings call ten minutes prior to the
scheduled start time.
Access via Social Media:
The @TMobileIR Twitter account will
live-tweet the earnings call.
Submit Questions via Text, Twitter, or Facebook:
Text:
|
|
|
|
|
Send a text message to 313131, enter the keyword TMUS followed by a
space
|
Twitter:
| | | | |
Send a tweet to @TMobileIR or @JohnLegere using $TMUS
|
Facebook:
| | | | |
Post a comment to John Legere’s Facebook Earnings post
|
Access via Webcast:
The earnings call will be broadcast live via the Company's Investor
Relations website at http://investor.t-mobile.com.
A replay of the earnings call will be available for two weeks starting
shortly after the call concludes and can be accessed by dialing
888-203-1112 (toll free) or 719-457-0820 (international). The passcode
required to listen to the replay is 5957414.
To automatically receive T-Mobile financial news by e-mail, please visit
the T-Mobile Investor Relations website, http://investor.t-mobile.com,
and subscribe to E-mail Alerts.
Forward-Looking Statements
This news release includes "forward-looking statements" within the
meaning of the U.S. federal securities laws. Any statements made herein
that are not statements of historical fact, including statements
about T-Mobile US, Inc.'s plans, outlook, beliefs, opinions,
projections, guidance, strategy, expected network modernization and
other advancements, are forward-looking statements. Generally,
forward-looking statements may be identified by words such as
"anticipate," "expect," "suggests," "plan," “project,” "believe,"
"intend," "estimates," "targets," "views," "may," "will," "forecast,"
and other similar expressions. The forward-looking statements speak only
as of the date made, are based on current assumptions and expectations,
and involve a number of risks and uncertainties. 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: our ability to compete in the highly competitive
U.S. wireless telecommunications industry; adverse conditions in the
U.S. and international economies and markets; significant capital
commitments and the capital expenditures required to effect our business
plan; our ability to adapt to future changes in technology, enhance
existing offerings, and introduce new offerings to address customers'
changing demands; changes in legal and regulatory requirements,
including any change or increase in restrictions on our ability to
operate our network; our ability to successfully maintain and improve
our network, and the possibility of incurring additional costs in doing
so; major equipment failures; severe weather conditions or other force
majeure events; and other risks described in our filings with
the Securities and Exchange Commission, including those described in our
most recently filed Annual Report on Form 10-K. You should not place
undue reliance on these forward-looking statements. We do not undertake
to update forward-looking statements, whether as a result of new
information, future events or otherwise, except as required by law.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160727005511/en/
Contacts:
Press Contact:
Media Relations
T-Mobile US, Inc.
mediarelations@t-mobile.com
http://newsroom.t-mobile.com
or
Investor
Relations Contact:
Nils Paellmann
T-Mobile US, Inc.
877-281-TMUS
or 212-358-3210
investor.relations@t-mobile.com
http://investor.t-mobile.com
Source: T-Mobile US, Inc.
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