Total Net Additions of 1.7M, Record-Low Q3 Branded Postpaid Phone Churn of 0.89%, Record Service Revenues of $8.6B, Record Q3 Net Income of $870M and Record Q3 Adj. EBITDA of $3.4B

Strong Customer Growth

1.7 million total net additions in Q3 2019 – record 26th consecutive quarter of more than 1 million total net additions

1.1 million branded postpaid net additions in Q3 2019 – best in the industry

754,000 branded postpaid phone net additions in Q3 2019 – best in the industry

62,000 branded prepaid net additions in Q3 2019, up 27,000 YoY

Record-low Q3 branded postpaid phone churn of 0.89% in Q3 2019, down 13 bps YoY

Record Q3 Financial Performance

(all percentages year-over-year)

Record Service revenues of $8.6 billion, up 6% in Q3 2019 with Branded postpaid revenues up 10%

Record Q3 Total revenues of $11.1 billion, up 2% in Q3 2019

Record Q3 Net income of $870 million, up 9% in Q3 2019

Record Q3 Diluted earnings per share (“EPS”) of $1.01, up 9% in Q3 2019

Record Q3 Adjusted EBITDA (1) of $3.4 billion, up 5% in Q3 2019

of $3.4 billion, up 5% in Q3 2019 Record Q3 Net cash provided by operating activities of $1.7 billion, up 91% in Q3 2019

Record Q3 Free Cash Flow(1) of $1.1 billion, up 27% in Q3 2019

Taking Major Steps Towards Nationwide 5G

Accelerated the planned launch of the first nationwide 5G network, utilizing 600 MHz spectrum, to this year, forming the foundational 5G coverage layer for New T-Mobile

600 MHz now reaching nearly 8,300 cities and towns in 48 states and Puerto Rico

4G LTE on 600 MHz now covers 200 million people and 1.4 million square miles

More than 26 million 600 MHz compatible devices already on our network

Continued Strong Outlook for 2019

Branded postpaid net additions of 4.1 to 4.3 million, up from prior guidance of 3.5 to 4.0 million

Net income is not available on a forward-looking basis (2)

Adjusted EBITDA target of $13.1 to $13.3 billion, which includes leasing revenues of $550 to $600 million, up at the midpoint from prior guidance of $12.9 to $13.3 billion (1)

Cash purchases of property and equipment, excluding capitalized interest of approximately $450 million (up from prior guidance of $400 million), are expected to be $5.9 to $6.0 billion, up $200 to $300 million from the high end of the prior guidance range, reflecting the rapid rollout of 600 MHz spectrum, which sets the foundation for our accelerated plan to launch the first nationwide 5G network this year. Cash purchases of property and equipment, including capitalized interest, are expected to be $6.35 to $6.45 billion, up from the prior guidance of $5.8 to $6.1 billion

Three-year compound annual growth rate (“CAGR”) from FY 2016 to FY 2019 for Net cash provided by operating activities, excluding payments for merger-related costs, is expected to be at 36% to 37%, an increase and narrowing from the prior target range of 33% to 35%

Three-year CAGR from FY 2016 to FY 2019 for Free Cash Flow, excluding payments for merger-related costs, is unchanged at 46% to 48% (1)

In Q4 2019, pre-close merger-related costs are expected to be $125 million to $150 million before taxes

(1) Adjusted EBITDA and 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 financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables.

(2) 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 GAAP Net income including, but not limited to, Income tax expense, stock-based compensation expense and Interest expense. Adjusted EBITDA should not be used to predict Net income as the difference between the two measures is variable.

T-Mobile US, Inc. (NASDAQ: TMUS) reported another strong quarter in Q3 2019 as we continue to maintain our unprecedented momentum and set even more performance records. America’s Un-carrier reported record high service revenues and record third-quarter financial results including net income, Adjusted EBITDA, net cash provided by operating activities and free cash flow. In addition, we reported our 26th consecutive quarter with more than 1 million total customer net adds and continue to lead the industry in postpaid phone net adds.

Customers show that they want to do business with a company that treats them right and changes the rules of the industry in their favor, and that’s what differentiates the Un-carrier from the competition. T-Mobile is known for its unrivaled customer experience obsession and the best customer care in the industry, with Team of Experts, and this has resulted in record-low Q3 branded postpaid phone churn and all-time high customer satisfaction scores.

T-Mobile continues to invest in building its nationwide 4G LTE network and continues to roll out 600 MHz spectrum, which now covers 200 million Americans and is live in nearly 8,300 cities and towns across 48 states and Puerto Rico. In addition, T-Mobile accelerated plans to launch America’s first nationwide 5G network on 600 MHz spectrum, which we expect will be live later this year. Our 600 MHz spectrum will be the foundational layer for the New T-Mobile’s 5G Network that once combined with Sprint’s spectrum, will result in a broad and deep nationwide 5G experience for everyone, everywhere.

“Q3 2019 was another blockbuster quarter for T-Mobile! Once again we set new records, including our 26th quarter in a row with more than 1 million net additions. And the Un-carrier is leading the industry in postpaid phone net adds – again,” said John Legere, CEO of T-Mobile. “Our team has been hard at work deploying 600 MHz spectrum and we have accelerated our plans to launch a foundational layer of 5G nationwide later this year. On top of that, the tremendous benefits of our merger with Sprint are just as compelling today as when we announced the deal and we look forward to completing the remaining steps so the New T-Mobile can get started delivering the incredible benefits to American consumers!”

For the full release and Fact Book, go to the T-Mobile Investor Relations page

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: the failure to obtain, or delays in obtaining, required regulatory approvals for the merger (the “Merger”) with Sprint Corporation (“Sprint”), pursuant to the Business Combination Agreement with Sprint and other parties therein (as amended, the “Business Combination Agreement”) and the other transactions contemplated by the Business Combination Agreement (collectively, the “Transactions”), risks associated with the actions and conditions we have agreed to in connection with such approvals, and the risk that such approvals may result in the imposition of additional conditions that, if accepted by the parties, could adversely affect the combined company or the expected benefits of the Transactions, or the failure to satisfy any of the other conditions to the Transactions on a timely basis or at all; the occurrence of events that may give rise to a right of one or both of the parties to terminate the Business Combination Agreement; adverse effects on the market price of our common stock or on our operating results because of a failure to complete the Merger in the anticipated timeframe, on the anticipated terms or at all; inability to obtain the financing contemplated to be obtained in connection with the Transactions on the expected terms or timing or at all; the ability of us, Sprint and the combined company to make payments on debt or to repay existing or future indebtedness when due or to comply with the covenants contained therein; adverse changes in the ratings of our or Sprint’s debt securities or adverse conditions in the credit markets; negative effects of the announcement, pendency or consummation of the Transactions on the market price of our common stock and on our or Sprint’s operating results, including as a result of changes in key customer, supplier, employee or other business relationships; significant costs related to the Transactions, including financing costs, and unknown liabilities of Sprint or that may arise; failure to realize the expected benefits and synergies of the Transactions in the expected timeframes, in part or at all; costs or difficulties related to the integration of Sprint’s network and operations into our network and operations, including intellectual property and communications systems, administrative and information technology infrastructure and accounting, financial reporting and internal control systems, and the alignment of the two companies’ guidelines and practices; costs or difficulties related to the completion of the divestiture of Sprint’s prepaid wireless businesses to DISH Network Corporation and the satisfaction of any related government commitments to such divestiture; the risk of litigation or regulatory actions related to the Transactions, including the antitrust litigation related to the Transactions brought by the attorneys general of certain states and the District of Columbia; the inability of us, Sprint or the combined company to retain and hire key personnel; the risk that certain contractual restrictions contained in the Business Combination Agreement during the pendency of the Transactions could adversely affect our or Sprint’s ability to pursue business opportunities or strategic transactions; adverse economic, political or market conditions in the U.S. and international markets; competition, industry consolidation, and changes in the market for wireless services, which could negatively affect our ability to attract and retain customers; the effects of any future merger, investment, or acquisition involving us, as well as the effects of mergers, investments, or acquisitions in the technology, media and telecommunications industry; challenges in implementing our business strategies or funding our operations, including payment for additional spectrum or network upgrades; the possibility that we may be unable to renew our spectrum licenses on attractive terms or acquire new spectrum licenses at reasonable costs and terms; difficulties in managing growth in wireless data services, including network quality; material changes in available technology and the effects of such changes, including product substitutions and deployment costs and performance; the timing, scope and financial impact of our deployment of advanced network and business technologies; the impact on our networks and business from major technology equipment failures; inability to implement and maintain effective cyber security measures over critical business systems; breaches of our and/or our third-party vendors’ networks, information technology and data security, resulting in unauthorized access to customer confidential information; natural disasters, terrorist attacks or similar incidents; unfavorable outcomes of existing or future litigation; any changes in the regulatory environments in which we operate, including any increase in restrictions on the ability to operate our networks and changes in data privacy laws; any disruption or failure of our third parties’ or key suppliers’ provisioning of products or services; material adverse changes in labor matters, including labor campaigns, negotiations or additional organizing activity, and any resulting financial, operational and/or reputational impact; changes in accounting assumptions that regulatory agencies, including the Securities and Exchange Commission (“SEC”), may require, which could result in an impact on earnings; changes in tax laws, regulations and existing standards and the resolution of disputes with any taxing jurisdictions; the possibility that the reset process under our trademark license results in changes to the royalty rates for our trademarks; the possibility that we may be unable to adequately protect our intellectual property rights or be accused of infringing the intellectual property rights of others; our business, investor confidence in our financial results and stock price may be adversely affected if our internal controls are not effective; the occurrence of high fraud rates related to device financing, credit card, dealers, or subscriptions; and interests of a majority stockholder may differ from the interests of other stockholders. 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.

