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Sep 30, 2020
T-Mobile Q3 2020 Earnings Report
T-Mobile surpassed 100 million customers and raised financial guidance for the second half of 2020, driven by strong Q3 2020 results.
Key Takeaways
T-Mobile reported strong Q3 2020 results, crossing the 100 million customer milestone and leading the industry in customer growth. The company raised its second half 2020 guidance for profitability and cash flow due to these strong results and faster-than-expected merger synergies.
Achieved a record-high of 2,035,000 total net additions, leading the industry.
Reported a record-high of 1,979,000 postpaid net additions, also best in the industry.
Reached a record-high of 100.4 million total customers by the end of Q3 2020.
Increased total revenues to $19.3 billion and service revenues to $14.1 billion.
Revenue by Segment
Forward Guidance
T-Mobile raised its second half 2020 outlook.
Positive Outlook
- Postpaid phone net customer additions are expected to be between 1.3 million and 1.4 million, including 600,000 to 700,000 in Q4 2020.
- Adjusted EBITDA is expected to be in the range of $13.6 billion to $13.7 billion, up from prior guidance of $12.4 billion to $12.7 billion. The Adjusted EBITDA target includes leasing revenues of $2.5 billion to $2.6 billion, compared to prior guidance of $2.4 billion to $2.6 billion.
- Cash purchases of property and equipment, including capitalized interest are expected to be between $6.7 billion and $6.9 billion, compared to prior guidance of $6.5 billion to $6.9 billion.
- Net cash provided by operating activities, including payments for Merger-related costs, is expected to be in the range of $5.9 billion to $6.1 billion, up from prior guidance of $5.3 billion to $5.7 billion.
- Free Cash Flow, including payments for Merger-related costs, is expected to be in the range of $700 million to $900 million, up from prior guidance of $300 million to $500 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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