Loading...
•
Dec 31, 2022
T-Mobile Q4 2022 Earnings Report
T-Mobile reported industry-leading customer, postpaid service revenue, and cash flow growth in Q4 2022.
Key Takeaways
T-Mobile reported strong Q4 2022 results, including industry-leading postpaid service revenue and cash flow growth. The company's focus on customer-first strategies and 5G network leadership drove record postpaid account and customer net additions.
Postpaid net customer additions of 1.8 million in Q4 2022.
Postpaid phone net customer additions of 927 thousand in Q4 2022.
Postpaid phone churn of 0.92% in Q4 2022.
Service revenues of $15.5 billion in Q4 2022.
T-Mobile
T-Mobile
T-Mobile Revenue by Segment
Revenue by Segment
Postpaid Service Revenues Revenue
CapyFin.com Forward Guidance
T-Mobile provided a strong outlook for 2023, driven by continued profitable customer growth and merger synergies.
Positive Outlook
- Postpaid net customer additions are expected to be between 5.0 million and 5.5 million, expected to lead the industry for the 9th consecutive year.
- Core Adjusted EBITDA is expected to be between $28.7 billion and $29.2 billion, up 10% year-over-year at the mid-point.
- Merger synergies are expected to be between $7.2 billion and $7.5 billion.
- Net cash provided by operating activities is expected to be between $17.8 billion and $18.3 billion, up 8% year-over-year at the mid-point.
- Free Cash Flow is expected to be between $13.1 billion and $13.6 billion, up approximately 75% year-over-year at the mid-point.
Challenges Ahead
- Merger-related costs are expected to be approximately $1.0 billion before taxes. These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided by operating activities and Free Cash Flow.
- Capital expenditures are expected to be between $9.4 billion and $9.7 billion.
- 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.
- Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2023.
- Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.