Best Ever Total Net Additions of 2.4
Million, Best Ever Q4 Postpaid Net Additions of 1.4
Million,
Best Q4 Postpaid Phone Net Additions in 4
Years of 1.0 Million, & Record Low Q4 Postpaid Phone
Churn
T-Mobile US, Inc. (NASDAQ: TMUS):
Preliminary Fourth Quarter 2018 Customer Highlights:
- 2.4 million total net additions - best
quarter ever
- 1.4 million branded postpaid net
additions - best Q4 ever
- 1.0 million branded postpaid phone net
additions - best Q4 in 4 years
- Lowest ever Q4 branded postpaid phone
churn of 0.99%, down 19 basis points year-over-year
- 135,000 branded prepaid net
additions
- 79.7 million customers in total at
year-end 2018
Preliminary Full-Year 2018 Customer Highlights:
- 7.0 million total net additions -
accelerated year-over-year
- 4.5 million branded postpaid net
additions - best in 3 years
- 3.1 million branded postpaid phone net
additions - accelerated year-over-year
- 460,000 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 2018. The
company posted its best quarter ever in total net customer
additions of 2.4 million, delivered its best fourth quarter ever in
branded postpaid net additions of 1.4 million and had record low
fourth quarter postpaid phone churn of 0.99%. For the full year
2018, T-Mobile exceeded its customer guidance delivering 4.5
million branded postpaid net additions and showed that the
Un-carrier’s momentum accelerated year-over-year. Since the launch
of the Un-carrier movement in 2013, T-Mobile’s Un-carrier strategy
has resulted in an increase in its customer base of more than 46
million - resulting in a total customer base of 79.7 million at the
end of 2018.
“The T-Mobile team delivered our best customer results ever in
Q4 2018 and we did it in a competitive climate while working hard
to complete our merger with Sprint,” said John Legere, CEO of
T-Mobile. “That's 23 quarters in a row where more than 1 million
customers have chosen T-Mobile - along with a postpaid phone churn
result that's below 1%. These customer results speak volumes about
our company, our network and our brand!"
Preliminary Fourth Quarter and Full-Year 2018 Customer
Results
T-Mobile continued to deliver meaningful value to consumers in
the fourth quarter of 2018 and the results again showed up in the
company’s customer additions. Customers who join T-Mobile get
access to a host of Un-carrier benefits that solve everyday pain
points such as Unlimited rate plans, Netflix at no extra charge for
qualifying customers on family plans, free international data
roaming and texting in more than 210 countries and destinations,
T-Mobile Tuesdays and the best customer service in the industry
with T-Mobile’s Team of Experts - all on the nation’s fastest 4G
LTE network. As a result, T-Mobile added 2.4 million total net
customers in the fourth quarter - its best quarter ever, bringing
its total customer count to 79.7 million at year-end 2018. This
marks the 23rd consecutive quarter that T-Mobile has generated more
than 1 million total net customer additions. Total customer
additions in 2018 were 7.0 million, an acceleration year-over-year,
marking the fifth consecutive year that T-Mobile added more than 5
million net customers.
T-Mobile also saw continued strength on the postpaid side,
reporting branded postpaid net customer additions of 1.4 million in
the fourth quarter of 2018. This was T-Mobile's best fourth quarter
branded postpaid net customer addition performance to date and
represents an acceleration both quarter-over-quarter and
year-over-year. Branded postpaid phone net customer additions were
1.0 million in the fourth quarter of 2018 - the company's best
quarterly performance in 4 years. For full-year 2018, the company
added 4.5 million branded postpaid net customers, which accelerated
year-over-year and exceeded the top end of the increased guidance
range for branded postpaid net customer additions of 3.8 to 4.1
million.
Branded prepaid net customer additions were 135,000 in the
fourth quarter of 2018 and 460,000 for full-year 2018. Migrations
to branded postpaid plans reduced branded prepaid net customer
additions by approximately 160,000 in the fourth quarter of 2018
and 585,000 for full-year 2018.
Wholesale net customer additions were 909,000 in the fourth
quarter of 2018 and 2.1 million for full-year 2018.
Not only are customers coming to T-Mobile, but they are also
staying longer. T-Mobile posted its best-ever fourth quarter
branded postpaid phone churn result this quarter showing the power
of the company’s value proposition. Branded postpaid phone churn
was 0.99% in the fourth quarter of 2018, down 19 basis points
year-over-year and down 3 basis points sequentially. This was the
company's second-lowest branded postpaid phone churn result
ever.
Branded prepaid churn was 3.99% in the fourth quarter of 2018,
down 1 basis point year-over-year and down 13 basis points
sequentially.
Preliminary Customer Results
Our customer results for the fourth quarter and full-year 2018
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 2018 in early February 2019.
As of % Change (in thousands)
December 31,2018
September 30,2018
December 31,2017
Qtr/Qtr Year/Year Customers, end of
period Branded postpaid phone customers (1) 37,224 36,204
34,114 3% 9% Branded postpaid other customers 5,295 4,957
3,933 7% 35% Total branded postpaid customers 42,519
41,161 38,047 3% 12% Branded prepaid customers (1) 21,137
21,002 20,668 1% 2% Total branded customers 63,656
62,163 58,715 2% 8% Wholesale customers 15,995 15,086
13,870 6% 15% Total customers, end of period 79,651
77,249 72,585 3% 10% (1) As a result of the
acquisition of Iowa Wireless Services, LLC ("IWS"), we included an
adjustment of 13,000 branded postpaid phone and 4,000 branded
prepaid IWS customers in our reported subscriber base as of January
1, 2018. Additionally, as a result of the acquisition of Layer3 TV,
Inc. ("Layer3 TV"), we included an adjustment of 5,000 branded
prepaid customers in our reported subscriber base as of January 22,
2018.
Quarter % Change
Year Ended % Change (in
thousands) Q4 2018 Q3 2018 Q4
2017 Qtr/Qtr Year/Year
2018 2017 2018 vs 2017 Net
customer additions Branded postpaid phone customers (1)(2)
1,020 774 891 32 % 14 % 3,097 2,817 10 % Branded postpaid other
customers (2) 338 305 181 11 % 87 % 1,362
803 70 % Total branded postpaid customers 1,358 1,079
1,072 26 % 27 % 4,459 3,620 23 % Branded prepaid customers (1) 135
35 149 286 % (9 )% 460 855 (46
)% Total branded customers 1,493 1,114 1,221 34 % 22 % 4,919 4,475
10 % Wholesale customers 909 516 633 76 % 44 %
2,125 1,183 80 % Total net customer additions 2,402
1,630 1,854 47 % 30 % 7,044 5,658
24 % (1) As a result of the acquisition of IWS and
Layer3 TV, customer activity post acquisition was included in our
net customer additions beginning in the first quarter of 2018. (2)
During the third quarter of 2017, we retitled our “Branded postpaid
mobile broadband customers” category to “Branded postpaid other
customers” and reclassified 253,000 DIGITS customer net additions
from our “Branded postpaid phone customers” category for the second
quarter of 2017, when the DIGITS product was released.
Quarter Qtr/Qtr Year/Year
Q4 2018 Q3 2018 Q4 2017 Branded
postpaid phone churn 0.99 % 1.02% 1.18% -3 bps -19 bps Branded
prepaid churn 3.99 % 4.12% 4.00% -13 bps -1 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 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 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 advanced
nationwide 4G LTE network delivers outstanding wireless experiences
to 79.7 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 proposed transaction, T-Mobile US, Inc.
(“T-Mobile”) has filed a registration statement on Form S-4 (File
No. 333-226435), which was declared effective by the U.S.
Securities and Exchange Commission (the “SEC”) on October 29, 2018,
and 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 proposed transaction with the SEC. 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. 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 contains certain forward-looking statements
concerning T-Mobile, Sprint and the proposed transaction between
T-Mobile and Sprint. All statements other than statements of fact,
including information concerning future results, are
forward-looking statements. These forward-looking statements are
generally identified by the words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may,” “could” or similar
expressions. Such forward-looking statements include, but are not
limited to, statements about the benefits of the proposed
transaction, including anticipated future financial and operating
results, synergies, accretion and growth rates, T-Mobile’s,
Sprint’s and the combined company’s plans, objectives, expectations
and intentions, and the expected timing of completion of the
proposed transaction. There are several factors which could cause
actual plans and results to differ materially from those expressed
or implied in forward-looking statements. Such factors include, but
are not limited to, the failure to obtain, or delays in obtaining,
required regulatory approvals, and the risk that such approvals may
result in the imposition of conditions that could adversely affect
the combined company or the expected benefits of the proposed
transaction, or the failure to satisfy any of the other conditions
to the proposed transaction 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 T-Mobile’s or Sprint’s
common stock and on T-Mobile’s or Sprint’s operating results
because of a failure to complete the proposed transaction in the
anticipated timeframe or at all; inability to obtain the financing
contemplated to be obtained in connection with the proposed
transaction on the expected terms or timing or at all; the ability
of T-Mobile, 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 T-Mobile’s or Sprint’s debt securities or adverse
conditions in the credit markets; negative effects of the
announcement, pendency or consummation of the transaction on the
market price of T-Mobile’s or Sprint’s common stock and on
T-Mobile’s or Sprint’s operating results, including as a result of
changes in key customer, supplier, employee or other business
relationships; significant transaction costs, including financing
costs, and unknown liabilities; failure to realize the expected
benefits and synergies of the proposed transaction in the expected
timeframes or at all; costs or difficulties related to the
integration of Sprint’s network and operations into T-Mobile; the
risk of litigation or regulatory actions; the inability of
T-Mobile, 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
proposed transaction could adversely affect T-Mobile’s or Sprint’s
ability to pursue business opportunities or strategic transactions;
effects of changes in the regulatory environment in which T-Mobile
and Sprint operate; changes in global, political, economic,
business, competitive and market conditions; changes in tax and
other laws and regulations; and other risks and uncertainties
detailed in the Form S-4, as well as in T-Mobile’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2017 and in its
subsequent reports on Form 10-Q, including in the sections thereof
captioned “Risk Factors” and “Cautionary Statement Regarding
Forward-Looking Statements,” as well as in its subsequent reports
on Form 8-K, all of which are filed with the SEC and available at
www.sec.gov and www.t-mobile.com. Forward-looking statements are
based on current expectations and assumptions, which are subject to
risks and uncertainties that may cause actual results to differ
materially from those expressed in or implied by such
forward-looking statements. Given these risks and uncertainties,
persons reading this communication are cautioned not to place undue
reliance on such forward-looking statements. T-Mobile assumes no
obligation to update or revise the information contained in this
communication (whether as a result of new information, future
events or otherwise), except as required by applicable law.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190109005242/en/
Press Contact:Media RelationsT-Mobile US,
Inc.mediarelations@t-mobile.comhttp://newsroom.t-mobile.com
Investor Relations Contact:Nils PaellmannT-Mobile US,
Inc.212-358-3210investor.relations@t-mobile.comhttp://investor.t-mobile.com
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