Q4 2019 Delivers 1.9 Million Total Net
Additions, including 1.0 Million Postpaid Phone Net Additions with
Postpaid Phone Churn Continuing at Near Q4 Record Low
Levels
T-Mobile US, Inc. (NASDAQ: TMUS):
Preliminary Fourth Quarter 2019 Customer Highlights:
- 1.9 million total net additions
- 1.3 million branded postpaid net
additions
- 1.0 million branded postpaid phone net
additions
- 1.01% branded postpaid phone churn
- 77,000 branded prepaid net
additions
- 86.0 million customers in total at
year-end 2019
Preliminary Full-Year 2019 Customer Highlights:
- 7.0 million total net additions
- 4.5 million branded postpaid net
additions
- 3.1 million branded postpaid phone net
additions
- 339,000 branded prepaid net
additions
T-Mobile US, Inc. (NASDAQ: TMUS) provided a preliminary view of
key customer results for the fourth quarter and full-year 2019. In
the fourth quarter, T-Mobile had 1.9 million total net additions,
the 27th quarter in a row with more than 1 million total net
additions. In addition, the company delivered branded postpaid
phone net additions of 1.0 million and branded postpaid phone churn
of 1.01% in the fourth quarter. For full-year 2019, T-Mobile had
7.0 million total net additions, including 4.5 million branded
postpaid net additions - beating its increased customer guidance
range of 4.1 to 4.3 million for the full-year 2019. T-Mobile's
total customer base was 86.0 million at year-end 2019, an increase
of approximately 53 million since T-Mobile launched the Un-carrier
in 2013.
“T-Mobile delivered another incredible fourth quarter with
strong customer growth, despite a very competitive environment -
and we did it while lighting up the country's first nationwide 5G
network and working to close our merger with Sprint,” said John
Legere, CEO of T-Mobile. “7 million net customers have chosen to
join the Un-carrier movement in 2019, and they are choosing
T-Mobile because we treat them right, we eliminate their pain
points, and we are changing the rules of this industry for
customers everywhere."
Preliminary Fourth Quarter and Full-Year 2019 Customer
Results
T-Mobile continued to demonstrate the brand’s ongoing strength
and momentum in the fourth quarter of 2019, reflected once again by
the company’s strong net customer additions. T-Mobile’s unrivaled
customer-experience obsession provides customers with access to a
host of Un-carrier benefits solving everyday pain points and the
best customer service in the industry with T-Mobile’s Team of
Experts. T-Mobile added 1.9 million total net customers in the
fourth quarter - bringing its total customer base to 86.0 million
at year-end 2019. This marks the 27th consecutive quarter that
T-Mobile has generated more than 1 million total net customer
additions. Notably, the company lit up America’s first nationwide
5G network in the fourth quarter of 2019 using 600 MHz spectrum – a
foundational layer of its 5G network – covering more than 200
million people and more than 1 million square miles across the
US.
Branded postpaid phone net additions amounted to 1.0 million,
flat year-over-year and up 33% from 754,000 net additions in the
third quarter of 2019. This result reflects strong gross branded
postpaid phone customer additions, up 5% year-over-year, in a very
competitive environment.
T-Mobile also saw continued strength in total branded postpaid
net additions, reporting net additions of 1.3 million in the fourth
quarter of 2019. For full-year 2019, the company added 4.5 million
branded postpaid net additions, which exceeded the top end of the
increased guidance range for branded postpaid net customer
additions of 4.1 to 4.3 million.
Branded prepaid net customer additions were 77,000 in the fourth
quarter of 2019 and 339,000 for full-year 2019. Migrations to
branded postpaid plans reduced branded prepaid net customer
additions by approximately 160,000 in the fourth quarter of 2019
and 525,000 for full-year 2019.
Wholesale net customer additions were 472,000 in the fourth
quarter of 2019 and 2.2 million for full-year 2019.
Postpaid phone churn amounted to 1.01% in the fourth quarter of
2019, up 2 basis points year-over-year, reflecting continued strong
brand loyalty in a heightened competitive environment.
Branded prepaid churn was 3.97% in the fourth quarter of 2019,
down 2 basis points year-over-year and down 1 basis point
sequentially.
Preliminary Customer Results
Our customer results for the fourth quarter and full-year 2019
are preliminary and subject to change pending completion of our
year-end closing review procedures. America’s Un-carrier plans to
share more details and its full financial results for the fourth
quarter and full-year 2019 in February.
As of %
Change (in thousands)
December 31,2019
September 30,2019
December 31,2018
Qtr/Qtr Year/Year Customers, end of
period Branded postpaid phone customers 40,345 39,344 37,224 3
% 8 % Branded postpaid other customers 6,689 6,376
5,295 5 % 26 % Total branded postpaid customers 47,034
45,720 42,519 3 % 11 % Branded prepaid customers (1) 20,860
20,783 21,137 — % (1) % Total branded customers
67,894 66,503 63,656 2 % 7 % Wholesale customers (1) 18,152
17,680 15,995 3 % 13 % Total customers, end of period
86,046 84,183 79,651 2 % 8 % Adjustments to
branded prepaid customers
(616
)
(1) On July 18, 2019, we entered into an agreement whereby
certain T-Mobile branded prepaid products will now be offered and
distributed by a current MVNO partner. As a result, we included a
base adjustment in Q3 2019 to reduce branded prepaid customers by
616,000. Prospectively, new customer activity associated with these
products is recorded within wholesale customers.
Quarter % Change Year Ended % Change
(in thousands) Q4 2019 Q3 2019
Q4 2018 Qtr/Qtr
Year/Year 2019 2018
2019 vs 2018
Net customer additions Branded postpaid phone customers
1,001 754 1,020 33 % (2 ) % 3,121 3,097 1 % Branded postpaid other
customers 313 320 338 (2 ) % (7 ) % 1,394
1,362 2 % Total branded postpaid customers
1,314 1,074 1,358 22 % (3 ) % 4,515 4,459 1 % Branded prepaid
customers (1) 77 62 135 24 % (43 ) %
339 460 (26 ) % Total branded customers 1,391 1,136
1,493 22 % (7 ) % 4,854 4,919 (1 ) % Wholesale customers (1) 472
611 909 (23 ) % (48 ) % 2,157 2,125
2 % Total net customer additions 1,863 1,747
2,402 7 % (22 ) % 7,011 7,044 —
% (1) On July 18, 2019, we entered into an agreement
whereby certain T-Mobile branded prepaid products will now be
offered and distributed by a current MVNO partner. As a result, we
included a base adjustment in Q3 2019 to reduce branded prepaid
customers by 616,000. Prospectively, new customer activity
associated with these products is recorded within wholesale
customers.
Quarter Qtr/Qtr Year/Year Year Ended
2019 vs2018
Q4 2019 Q3 2019 Q4
2018 2019 2018 Branded postpaid
phone churn 1.01 % 0.89 % 0.99 % 12 bps 2 bps 0.89 % 1.01 % -12 bps
Branded prepaid churn 3.97 % 3.98 % 3.99 % -1 bps -2 bps 3.82 %
3.96 % -14 bps
T-Mobile Social Media
Investors and others should note that we announce material
financial and operational information to our investors using our
investor relations website, press releases, SEC filings and public
conference calls and webcasts. We also intend to use certain social
media accounts as means of disclosing information about us and our
services and for complying with our disclosure obligations under
Regulation FD (the @TMobileIR Twitter account
(https://twitter.com/TMobileIR) and through April 30, 2020, the
@JohnLegere Twitter (https://twitter.com/JohnLegere), Facebook and
Periscope accounts, which Mr. Legere also uses as means for
personal communications and observations, and on and after May 1,
2020 the @SievertMike Twitter (https://twitter.com/SievertMike)
account, which Mr. Sievert also uses as a means for personal
communications and observations). 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 our press releases, SEC filings and public conference
calls and webcasts. The social media channels that we intend to use
as a means of disclosing the information described above may be
updated from time to time as listed on our 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. Our nationwide 5G
and advanced 4G LTE network delivers outstanding wireless
experiences to 86.0 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 Metro by T-Mobile. For more
information, please visit http://www.t-mobile.com or join the
conversation on Twitter using $TMUS.
Important Additional Information
In connection with the Transactions, T-Mobile US, Inc.
(“T-Mobile”) has filed a registration statement on Form S-4 (File
No. 333-226435), which contains a joint consent solicitation
statement of T-Mobile and Sprint Corporation (“Sprint”), that also
constitutes a prospectus of T-Mobile (the “joint consent
solicitation statement/prospectus”), and each party will file other
documents regarding the Transactions with the SEC. The registration
statement on Form S-4 was declared effective by the SEC on October
29, 2018, and T-Mobile and Sprint commenced mailing the joint
consent solicitation statement/prospectus to their respective
stockholders on October 29, 2018. INVESTORS AND SECURITY HOLDERS
ARE URGED TO READ THE JOINT CONSENT SOLICITATION
STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED WITH THE
SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT
INFORMATION. Investors and security holders may obtain these
documents free of charge from the SEC’s website or from T-Mobile or
Sprint. The documents filed by T-Mobile may be obtained free of
charge at T-Mobile’s website, at www.t-mobile.com, or at the SEC’s
website, at www.sec.gov, or from T-Mobile by requesting them by
mail at T-Mobile US, Inc., Investor Relations, 1 Park Avenue, 14th
Floor, New York, NY 10016, or by telephone at 212-358-3210. The
documents filed by Sprint may be obtained free of charge at
Sprint’s website, at www.sprint.com, or at the SEC’s website, at
www.sec.gov, or from Sprint by requesting them by mail at Sprint
Corporation, Shareholder Relations, 6200 Sprint Parkway, Mailstop
KSOPHF0302-3B679, Overland Park, Kansas 66251, or by telephone at
913-794-1091.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be
any sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended.
Cautionary Statement Regarding 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.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200107005400/en/
Press Contact:Media RelationsT-Mobile US,
Inc.mediarelations@t-mobile.comhttp://newsroom.t-mobile.comInvestor
Relations Contact:Nils PaellmannT-Mobile US,
Inc.investor.relations@t-mobile.comhttp://investor.t-mobile.com
T Mobile US (NASDAQ:TMUS)
Historical Stock Chart
From Mar 2024 to Apr 2024
T Mobile US (NASDAQ:TMUS)
Historical Stock Chart
From Apr 2023 to Apr 2024