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Mar 31, 2023
T-Mobile Q1 2023 Earnings Report
T-Mobile delivered industry-leading growth in customers and profitability.
Key Takeaways
T-Mobile reported strong Q1 2023 results, demonstrating industry-leading growth in both customers and profitability. The company raised its 2023 guidance, driven by its differentiated strategy and focus on customer value.
Postpaid net customer additions of 1.3 million, exceeding AT&T and Verizon combined.
Postpaid phone churn of 0.89%, improved year-over-year.
Service revenues grew 3% year-over-year to $15.5 billion.
Net income increased 172% year-over-year to $1.9 billion, with diluted EPS of $1.58.
T-Mobile
T-Mobile
T-Mobile Revenue by Segment
Revenue by Segment
Postpaid Service Revenues Revenue
CapyFin.com Forward Guidance
T-Mobile raised its 2023 guidance for postpaid net customer additions and Core Adjusted EBITDA.
Positive Outlook
- Postpaid net customer additions are expected to be between 5.3 million and 5.7 million, an increase from prior guidance of 5.0 million to 5.5 million.
- Core Adjusted EBITDA is expected to be between $28.8 billion and $29.2 billion, an increase from prior guidance of $28.7 billion to $29.2 billion.
- Merger synergies are expected to be between $7.3 billion and $7.5 billion, an increase from prior guidance of $7.2 billion to $7.5 billion.
- Net cash provided by operating activities is expected to be between $17.9 billion and $18.3 billion, an increase from prior guidance of $17.8 billion to $18.3 billion.
- Adjusted Free Cash Flow is expected to be between $13.2 billion and $13.6 billion, an increase from prior guidance of $13.1 billion to $13.6 billion.
Challenges Ahead
- Merger-related costs are expected to be approximately $1.0 billion before taxes.
- Capital expenditures are expected to be between $9.4 billion and $9.7 billion.
- Guidance ranges assume lease revenues of approximately $300 million for 2023.
- Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2023.
- T-Mobile is 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 and Interest expense.