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Press Release: T-Mobile Caps Best Year Ever in 2020 with Strong Q4 Results, Is the Only National Wireless Provider to Beat Expectations on BOTH Customer Growth and Profitability

· 02/04/2021 16:01
-- Total revenues increased year-over-year to $20.3 billion in Q4 2020 and $68.4 billion in full-year 2020, and total service revenues increased year-over-year to $14.2 billion in Q4 2020 and $50.4 billion in full-year 2020, driven by the Sprint merger and continued customer growth. -- Net income was essentially flat year-over-year at $750 million in Q4 2020 and decreased year-over-year to $3.1 billion in full-year 2020, as expense increases as a result of the Sprint merger, including merger-related costs, were partially offset by higher revenues. Merger-related costs were $686 million before taxes in Q4 2020 and $1.9 billion before taxes in full-year 2020. Diluted earnings per share (EPS) decreased year-over-year to $0.60 in Q4 2020 and $2.65 in full-year 2020 due to lower net income and a higher number of outstanding shares as a result of the Sprint merger. -- Adjusted EBITDA increased year-over-year to $6.7 billion in Q4 2020 and $24.6 billion in full-year 2020, primarily due to the Sprint merger, including the related synergy capture, and continued customer growth. -- Net cash provided by operating activities increased year-over-year to $3.5 billion in Q4 2020 and $8.6 billion in full-year 2020. Free Cash Flow, excluding gross payments for the settlement of interest rate swaps, decreased year-over-year to $476 million in Q4 2020 and $3.0 billion in full-year 2020, as higher cash purchases of property and equipment were partially offset by increased net cash provided by operating activities. -- Cash purchases of property and equipment including capitalized interest increased year-over-year to $3.8 billion in Q4 2020 and $11.0 billion in full-year 2020, primarily due to the continued 5G network build-out and network integration activities related to the Sprint merger.Year Ended Quarter December 31, ------------------------------------ ----------------------- (in thousands, except churn) Q4 2020 Q3 2020 Q4 2019 2020 2019 ----------- ----------- ---------- ----------- ---------- Net customer additions 1,702 2,035 1,391 5,631 4,854 Postpaid net customer additions 1,618 1,979 1,314 5,486 4,515 Postpaid phone net customer additions 824 689 1,001 2,218 3,121 Postpaid other customer additions 794 1,290 313 3,268 1,394 Prepaid net customer additions 84 56 77 145 339 Total customers, end of period 102,064 100,362 67,894 102,064 67,894 Postpaid phone churn 1.03% 0.90% 1.01% 0.90% 0.89% Prepaid churn 2.92% 2.86% 3.97% 3.03% 3.82%-- Net customer additions were 1.7 million in Q4 2020, the 24th consecutive quarter of industry-leading performance in this category. Net customer additions were 5.6 million in full-year 2020, the best in the industry and highest in four years. The total customer count increased to a record-high of 102.1 million. -- Postpaid net customer additions were 1.6 million in Q4 2020, the 12th consecutive quarter of industry-leading performance in this category. Postpaid net customer additions were 5.5 million in full-year 2020, the best in the industry and the most in company history. -- Postpaid phone net customer additions were 824 thousand in Q4 2020, best in the industry and the 28th consecutive quarter of leading the national carriers, and 2.2 million in full-year 2020. Postpaid phone churn was 1.03% in Q4 2020 and 0.90% in full-year 2020. -- Postpaid other net customer additionswere 794 thousand in Q4 2020, leading the industry for the 3rd consecutive quarter. Postpaid other net customer additions were 3.3 million in full-year 2020, best in the industry and the most in company history. -- Prepaid net customer additions were 84 thousand in Q4 2020, leading the national carriers, and 145 thousand in full-year 2020. Prepaid churn was 2.92% in Q4 2020 and 3.03% in full-year 2020.(1) Adjusted EBITDA, Core Adjusted EBITDA and Free Cash Flow, excluding gross payments for the settlement of interest rate swaps, 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 GAAP financial measures, to the extent applicable, are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables. 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 Net income including, but not limited to, Income tax expense, stock-based compensation expense and Interest expense. Core Adjusted EBITDA should not be used to predict Net income as the difference between the two measures is variable.-- Expect growth in postpaid customers, Core Adjusted EBITDA(1), net cash provided by operating activities, and Free Cash Flow(1) in 2021 -- Updated merger synergies, medium and long-term guidance, and a strategic overview of the business to be provided at Analyst Day following the expected end of the FCC quiet period for Auction 107 BELLEVUE, Wash.--(BUSINESS WIRE)--February 04, 2021---- Extended Range 5G covers 280 million people across 1.6 million square miles, nearly 4x more than Verizon and nearly 2.5x more than AT&T -- Ultra Capacity 5G covers 106 million people, over 50x more than Verizon's 5G Ultra Wideband, and expect to cover 200 million people nationwide by the end of 2021 -- Fastest 5G speeds based on recent data from Opensignal and umlaut (formerly P3)-- Delivered $1.3 billion of synergies in full-year 2020, exceeding guidance -- 25 percent of Sprint postpaid customer traffic has already been moved over to the T-Mobile network and more than 4 million customer network migrations have been completed-- Total revenues of $20.3 billion in Q4 2020 -- $68.4 billion in full-year 2020 -- Net income of $750 million in Q4 2020 -- $3.1 billion in full-year 2020 -- Adjusted EBITDA(1) of $6.7 billion in Q4 2020 -- $24.6 billion in full-year 2020 -- Net cash provided by operating activities of $3.5 billion in Q4 2020 -- $8.6 billion in full-year 2020 -- Free Cash Flow, excluding gross payments for the settlement of interest rate swaps(1) of $476 million in Q4 2020 -- $3.0 billion in full-year 2020-- Total net additions of 1.7 million in Q4 2020, best in industry -- 5.6 million in full-year 2020, best in industry and highest in four years -- Postpaid net additions of 1.6 million in Q4 2020, best in industry -- 5.5 million in full-year 2020, best in industry and most in company history -- Postpaid phone net additions of 824 thousand in Q4 2020, best in industry -- 2.2 million in full-year 2020, best in industry

T-Mobile Caps Best Year Ever in 2020 with Strong Q4 Results, Is the Only National Wireless Provider to Beat Expectations on BOTH Customer Growth and Profitability

Industry-Leading Customer Growth

Strong Financial Results

Merger Synergies and Customer Migrations Ahead of Schedule

Largest 5G Network in America is Now the Fastest Too

Strong 2021 Outlook and Analyst Day Coming After Auction 107

T-Mobile US, Inc. (NASDAQ: TMUS) reported fourth quarter and full-year 2020 results today, highlighted by industry-leading total net additions, postpaid net additions and postpaid phone net additions for both the fourth quarter and full-year 2020. The company also reported strong financial results that met or exceeded all guidance as it leverages a synergy-backed model to simultaneously deliver customer growth and profitability.

"These results show that we're pulling way ahead of the pack on what matters - overall 5G network performance - and executing to stay ahead," said Mike Sievert, CEO of T-Mobile. "And customers are noticing. 2020 was quite simply our best year yet, with our highest EVER total postpaid net additions of 5.5 million. Our team delivered -- leading the industry on customer growth, while being the ONLY major player to grow profitability as well, with our synergy-backed business model. The best team, the best assets, the best 5G network. We're positioned to create enormous value. I like the hand we're holding!"

Industry-Leading Customer Growth

The following table includes the impact of the Sprint merger on a prospective basis from the close date of April 1, 2020. Historical results have not been restated and reflect standalone T-Mobile.

Strong Financial Results

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February 04, 2021 16:01 ET (21:01 GMT)