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)

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.”

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 10^th 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
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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
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