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Mar 31, 2021
T-Mobile Q1 2021 Earnings Report
T-Mobile reported industry-leading customer growth and strong financial results, leading to raised 2021 guidance.
Key Takeaways
T-Mobile's Q1 2021 results were highlighted by industry-leading total net additions, postpaid net additions, and postpaid phone net additions. The company also reported strong financial results and raised 2021 guidance.
Total net additions of 1.4 million, best in industry.
Postpaid net additions of 1.2 million, best in industry.
Total revenues of $19.8 billion and service revenues of $14.2 billion.
Net income of $933 million, diluted earnings per share (“EPS”) of $0.74.
T-Mobile
T-Mobile
T-Mobile Revenue by Segment
Revenue by Segment
Postpaid Service Revenues Revenue
CapyFin.com Forward Guidance
T-Mobile raises 2021 outlook for postpaid net customer additions, Core Adjusted EBITDA, cash purchases of property and equipment, Merger-related costs, net cash provided by operating activities, and Free Cash Flow.
Positive Outlook
- Postpaid net customer additions are expected to be between 4.4 million and 4.9 million, an increase from prior guidance of 4.0 million to 4.7 million.
- Core Adjusted EBITDA is expected to be between $22.8 billion and $23.2 billion, an increase from prior guidance of $22.6 billion to $23.1 billion.
- Cash purchases of property and equipment, including capitalized interest are expected to be at the high end of the prior guidance range of $11.7 billion to $12.0 billion.
- Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $13.2 billion and $13.6 billion, an increase from prior guidance of $13.0 billion to $13.5 billion.
- Free Cash Flow, including payments for Merger-related costs, is expected to be between $5.1 billion and $5.5 billion, an increase from prior guidance of $4.9 billion to $5.4 billion.
Challenges Ahead
- Merger-related costs are expected to be between $2.7 billion and $3.0 billion before taxes, an increase from prior guidance of $2.5 billion to $3.0 billion as the company executes faster on merger integration.
- These costs are excluded from Core Adjusted EBITDA but will impact Net income and cash flows.
- 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.
- Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
- Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2021.