T-Mobile US (TMUS) 27 Apr 232023 Q1 Earnings call transcript

Company Profile

Participants

Jud Henry	Senior Vice President and Head-Investor Relations
Mike Sievert	President and Chief Executive Officer
Peter Osvaldik	Chief Financial Officer
Ulf Ewaldsson	President, Technology
Mike Katz	Chief Marketing Officer
Neville Ray	President and Strategic Network Advisor
Jon Freier	President, Consumer Group
Callie Field	President, T-Mobile Business Group
Phil Cusick	J.P. Morgan
Landon Park	Morgan Stanley
John Hodulik	UBS
Jonathan Chaplin	New Street Research
Brett Feldman	Goldman Sachs
Michael Rollins	Citigroup
Craig Moffett	MoffettNathanson
David Barden	Bank of America

Call transcript

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good afternoon. [Operator Instructions] I would now like to turn the conference over to Mr. Jud Henry, Senior Vice President, Head of Investor Relations for T-Mobile US. Please go ahead, sir.

Jud Henry

All right. Quarter Call. First T-Mobile’s to XXXX Earnings Welcome

team. Joining our our President the call senior CFO; Mike Sievert, today are leadership the and of well other me as on as members CEO; Peter Osvaldik,

risks you During this call, forward-looking differ that our will risk make statements. to filings, to We cause results I from comprehensive SEC and list factors which actual of forward-looking may materially uncertainties statements, we review. involve encourage our provide which a in

documents other non-GAAP and to book this fact the investor release, website. reconciliations the and earnings as Investor results, GAAP call in as of results related well Results found Our our on section Quarterly Relations can between be discussed

I it With will over turn Mike. that, to

Mike Sievert

and live can to today our as am group Thanks, off with are coming senior Bellevue, we from here posting as great team kick you that we headquarters Okay. everybody. gathered the Hi, Jud. and you see, of XXXX. are leadership to at Well, you results Washington our welcome a I some terrific share with call, we to

by best our produce outcomes. And of start our the formula to and the competitive saying no to will results environment, unique continue for offering network best demonstrate value I continues that the QX matter best-in-class

service guidance and year. the led on our full focus reliably continuing postpaid again growth best We quarter to us just raise the adds, unlocking And industry into one into the and flow our consistent gives translating postpaid broadband while profitability industry-leading net customer revenue in year substantial new to confidence growth growth. deliver cash the customer

broadband proud of how T-Mobile. us the a to benefit customers, hear XX was moves more as our wireless have more I QX and of now say am of stop. quarter also recently, often history and will celebration industry we I this you Un-carrier say, for transformed than won’t XX-year at of so Now

to aimed a to pricing other providers move relentless latest contracts, free locked with changes wireless Phone three-year So into subjected move last Un-carrier gadgets. our week are announced those customers and we Freedom, and they while

And easier for continue We for to price that lock, raise to won’t peace their knowing Phone T-Mobile we with they to customers will customers and new one with years, too part force and two for too to text to upgrade-ready top make three are in now price come years data. Freedom, of T-Mobile be of it because switch mind, to long wait. is

industry reported sort almost crazy your being quantitative that research lowest a yet highest to of Their away. this quarter or self-reported AT&T have around, customers. customers postpaid T-Mobile’s head of Verizon’s kind in states their churn likely to report Here’s the switch than of get customers and the fact more phone switching likelihood XX% the

full one me, been means decade a thing. our Un-carrier The And moves the highest customers lowest here now. groundbreaking we dissatisfaction. it all trapped move apparent the to about. that for way and designing all churn, Their And it’s is what that’s about. Phone are what latest That’s our Freedom is solve we are have Un-carrier to but and

of And milestone we month, our know, three-year as the you anniversary this hit another merger.

up is, We it merger the and that most wrapping will we are conclude telecom in integration have I that many think, an history. successful deemed,

XG massive provider. commitments from process. customers and ahead know the We XG by leapfrogging pain industry all of the in biggest did of in are and the we and of all, And of place the same had best the most last our we leadership it schedule, giving era, this from era And value celebrating the to both, smashing about, value always the network it the it in what dream we unlocking was you finally in point what? best did meeting

and a and to winners. that businesses market a about the brought have America possible we this would not that yeah, and And XG level everywhere, customers been merger to network this makes new real competition without of

of of network well fastest the Speaking quarter XG according are and most round for again network celebrating another as and overall wins as to network, in awarded the best a is results as our second Ookla. in the row largest, team

in And a President It not for you role in confident just is to time. Ulf a snapshot durable and as lead. am and that congratulations thank And Technology, lead of us… this in network is I new stepping team his

Ulf Ewaldsson

you. Thank

Sievert Mike

our continue aggregation. customer-driven in will of in standalone this XG spectrum over great next finally, multi-carrier our assets technologies advanced race process and rapidly rapid implementing to with … and in our and the breadth called coverage, depth deployed years ahead keep leadership such unique both execution us and continued as

these of in things, best the importantly capital All to contributing our are sector. efficiency

in All us of and these showed in the with coupled markets unique growth differentiated that what separates from our opportunity QX. and a strategy again strengths, are underpenetrated profitable you we know enables that what, competition,

in postpaid net at the industry once level. than more AT&T million, means And reported in X.X combined. we switching additions We account winning this because of the had additions, that at the net looks And added we it account highest market, are and decisions XXX,XXX the Verizon again. the postpaid

adds we adds This industry continues previous like included just would moderate, postpaid won predicted a in year-over-year calls. we XXX,XXX. higher even phone as net share We to net of of the

as driven to by as adds, the was phone being year-over-year. our wireless postpaid strong improve share well phone national gross only churn increased provider Our

continues and sometimes profitable plans on even and to our the Our continues above consistent deliver competitive approach ambitious right shift even and as landscape to that’s to growth evolve.

don’t, be first pulling incumbent providers to customers existing their and cable seen appear from quarters, incrementally driving but giving definitely are ARPUs down. by recent three In we that away lines way, the have

outspend spent We have more us Verizon in Verizon QX. and significantly advertising. than I AT&T seen alone XX% media T-Mobile in mean almost

year-over-year lean and churn to have improve while as lock contract T-Mobile see, the long-term rate. only one continue their expensive lowest up mentioned we to others upgrade I And the offers device earlier, into who customers, was

approach is value with to because know the the choose be. to for we with That’s but contracts with expensive want network, churn, and Improving to what? you experiences. how customers for slam proposition genuinely upgrade it for upgrades, years. three for them unwanted the T-Mobile down the not lowest And tie to that’s our Customers stay

You because and saw have us net new underpenetrated taking guidance the This to we confidence gives add have permission profitable and now it’s momentum driven is what postpaid to heard financial QX exactly differentiated places playbook is growth strategy relative be say durable, but raise in by we we year. win. to our the and where us to before, the the the for in share our where continue market,

for and Verizon highest our just phone posted the net more one add with quarter. with we phone are adds of taking share quarter churn in net net business business and this, QX of example lowest Business in perfect business T-Mobile account profitably history we the where phone than more our ever A in adds

the On the side, we network network combination coverage with increasingly and capacity seekers of XXX needs. consumer that their top prime T-Mobile for are in offers the who best winning recognize markets

quarter. our fact, In prime all-time this an hit high customer base again

news, showing where And upper on strategy it’s switchers the win are two-thirds capturing this in great we a in geography competing. are and the XXs that is now rural markets track. is smaller here our because roughly This areas, that’s in very share of of we and much

we grow quarter. that fourth gross our Internet customers two have continued I XXX,XXX adds added Charter and consecutive since years we to as would Verizon, more combined added than addition, we customers launched for quarter broadband high-speed AT&T, we every In ago. expect Comcast the

EBITDA but our net only adds, XX%. up did highest financial have X% up strong free into over translated focus core and the adjusted we cash not with year-over-year And growth profitable on flow performance

the room confident run this T-Mobile in example how year our ambitions I beyond. am of and Our have QX results lots were just of and at latest to we for

saw are more One thing team from and come even introduce offer move have our plans that value new is contracts satisfied, Un-carrier customers we latest than that this before. to from again GoXG free to with management three-year and that never you you expect

in I this with recently, that even I ahead about have us. the QX and proud of excited am are what on Un-carrier am of more in most for we XX thankful so years am As as you and as I journey accomplished all T-Mobile our what’s

Peter, to key XXXX. financial guidance the talk you highlights about for and to our updated Okay. over

Peter Osvaldik

Thank be of Mike. to I year updated the you and share best-in-class results is QX our XXXX in another Absolutely. guidance with positioned on profitable you, moment. growth will based a

accounts postpaid Our in in year-over-year. ARPA continued industry, and service growth revenue resulted the postpaid increases X% up best postpaid the in

adjusted X% year-over-year flat Verizon XXX a while in in core core to and our resulted increase margin by profitability adjusted we on were AT&T and EBITDA year-over-year, basis grew EBITDA points focus down. disciplined Our

our XX% peers. and In cash flow addition, cash free was as highest to free mentioned, flow the margin unlock up relative over Mike

of We cash forward. margin durable differentiated expect and shareholder our going industry-leading be free to value flow a unlock

This $X.X billion as performance with for million for share our we in of XX XX.X repurchased also shares as April total QX, $X.X strong XX. shares a of financial supported billion cumulative buybacks million repurchased

It cost grade two and our recent on who market. to further lower the increases rating to upgrades capital our growth Moody’s investment in was the see Fitch from also These us deep great BBB+. continued reflected upgraded rating strengthen to access profitable in execution BaaX both notches recently to

right. All

X.X across growth of net increased our Let’s full be our expect net into million, opportunities customer phones postpaid up million phone coming XXXX. postpaid postpaid customer nearly guidance the midpoint, for We additions at reflecting total of we from market to all of X.X total to jump continue expect and the adds for between net now XXX,XXX details -- the and half year. additions

those to off and based $XXX increase revenues by which substantially allows of profitable adjusted excludes fund us all midpoint as the higher expected our of million leasing end. service between million, $XX.X be merger is at Our synergies, leasing billion, course, core remaining revenues are higher $XX.X device focus adds approximately EBITDA year-over-year this XX% customers up we year on growth and and on customer to expectations, net still now transition

full merger Our rate a to towards synergy the approaching as billion our build from $X.X of synergy in are rate Day to synergies XXXX, in Analyst between billion raised the target XXXX. run run ahead we schedule of target expected $X.X recently billion $X year be

costs billion have to expect and taxes merger-related be continue $X also $X included to recognition merger-related for to-date. $X.X We EBITDA not cash P&L expect billion core as to are to before adjusted underrun in approximately billion adjusted they we XXXX the costs, continue of which or

now Net range to costs $XX.X of the by includes be which billion. $XX.X to for cash operating billion payments expected provided merger-related in activities, is

and capital continue We cash in be a and of billion billion, our $X.X CapEx by our leadership. unmatched the integration network driven efficiency industry back on to XG expect to $X.X between

QX of the in to moderating elevated, and then half expect QX lower back than year. remain We just slightly the

expected material to of now capital cash in billion. results to over in and free is to approximately $XX.X This our flow, margin merger-related the billion for this range not costs, net expansion be assume up securitization. Thanks is any higher from payments Together, does inflows and year. cash including which XX% efficiency last $XX.X

And than and then peers as higher a mentioned, QX service in ramp also expect be the multiple back is would and revenue CapEx, year. half cadence cash based margin, which to represents the of slightly points of flow higher I I cash this flow free the in QX percentage free to on than

We year effective be and rate continue to to XX%. our full expect between tax XX%

of And approximately continue we postpaid be X% expect execute to ARPA and up winning relationships, in to strategy finally, account XXXX. year as our full we expanding

right. All

the and assets at progressing the early on Before give update wireline Cogent. now is up, Cogent, our to led expect process quick of May. close by we smoothly want I and the wrap team transaction Dave sale in I to very to The a

million nominal revenue service basis, lower a wholesale this cost million and $XXX service impact On approximately to lower and other will with a of SG&A. $XXX lead quarterly expenses approximately to

QX. mid-quarter impact expect With the impact we with partial quarter in in full the QX closing, a beginning

continue opportunities. scale So, we even of leadership profitable XXXX our another profitable expect differentiated to growth extend and be flow greater growth expansion year in as further free cash to and closing, we network our

Jud? that, now turn will Jud begin to the to back with Q&A. call And the over I

Jud Henry

our [Operator right. first let’s All Instructions] Peter. Operator, Thanks, question, take please.

Operator

with question from J.P. first Morgan. proceed. Please Phil Our Cusick comes

Phil Cusick

Hi, guys. we can user. Thanks very start with much. the per Maybe revenue

approximately I about said XXXX. think the X% quarter same up ARPA last in you thing you did this that

guide that upgrades remind plans, have GoXG looking moving of the for at of sort the MAX, you been Magenta and of is lift? were path long that of launched how customers the pace how Can good We GoXG recently. and drives and to us took the ARPA that that a which the

Mike Sievert

Hey, Phil. and and maybe to I will turn Mike Peter. start

Magenta couple of But the to lineup. being this are is to point out this to new One, Magenta First of in and all, continues things. added we excited be I about really a MAX. want so lineup MAX

as popular price of plans, represented Magenta to of it by higher. these going we point kind we as think thinking are kind the and And about of be mainstream MAX

So of that GoXG Plus would as MAX, Plan category. include include a the Magenta would new it kind

what is that in and And run rate seen that, we have MAX our forward will Magenta was and the XXs that all for you true carry launch we see been expectation seeing is, since have through that QX. certainly it

great So maybe, see plans our plans customers Mike, talk unpack to about packed value And really our the are little can bit. things are you highest that that with -- popular also a looking T-Mobile for.

Mike Katz

with construct we of because our plans portfolio give Mike strategy, new plans to said, I the customers and particularly think mean, Plus, our that do see a I like are the that and Yeah. it of choice. really comes GoXG pricing, to you that it’s differentiation way GoXG as rate representation incremental great

plans, with seeing which we most packed Plus. in post-pandemic are Mexico increased popular where Canada, especially plan people are more, increased moving we that which the we everywhere working utilized hotspot, ever these most with around benefits And world destination for the and roaming a in and GoXG customers, in our done the and is with have in

are The you phones, get in see and existing plan, the promotion we other same folks. customers on guaranteed deal plan, not from first new a like the

been we early on The really these really bullish plans. So good. to response them are has

it’s And XX-plus. will one that have some things in about the with is mix-driven of as we I you things with that us, segments success see of ARPU us, the a whether particularly about of metric. business opportunities is ARPU One being the the or say talked for

a of XX-plus in opportunities can of we success demonstrate business customers. we on one those the like that with look reflected ARPA and mix a focus lot high and really lot why The segments where we like with reasons we see at and in is customers ARPU attract it’s customers and a our CLV, retain we customers see our

see So value you portfolio. those in us our accretive will kinds continue opportunities focus to on of creating

Mike Sievert

Peter?

Peter Osvaldik

Yeah.

mix-driven the only think with a said Mike is, actually it’s I really such thing add metric. Mike well XX-plus above on in for that customers CLVs it I spoke the segments And are brings and about example, that and but really we for drive, CLV, They CLVs, have to may we accretive profitable know, that’s the are very because that growth right? ARPUs as you trying average high us. the is how lower model everything growth

to metric, So it excuse XG that probably mix more GoXG mix potentially of because on an of -- flat. ARPU-based shift, I’d But, sequentially relatively you some Plus be as Plus, yes, to where up company. expect the see value of in is me, some then accounts you here, XG focus the year. opportunity latter ARPA But could everywhere half is really the the in create pick and expansion that

Phil Cusick

guys. Thanks, helpful. That’s

Mike Sievert

next question, Operator, Thanks, Phil. Yeah. please?

Operator

question Flannery next Stanley. Our proceed. from comes Please with Simon Morgan

Mike Sievert

Simon. Hey,

Landon Park

question. the Thanks taking Landon for is Simon. This Hi. for on

Mike Sievert

Okay.

Landon Park

if cohorts trials are front? been broadband in some Maybe am you that seeing home are what churn as latest thoughts potential there could the we latest I your on side. the talk you you about on can on overlay as the running, different wave how well thoughts millimeter wondering a the of start fiber and have on

Mike Sievert

Yeah. to will bunch I a wants we see then who jump There’s in. there. will start and

to fiber have a than trials. lot other committed in our that, And our to and is are a team report leadership winners there, new Internet about XG high-speed First of is broadband. being through you all, asking I in obviously, don’t very this

us, and et see something you the what being technology models, service do us to that’s to the cetera, CLV, that. important understand able is get for so very continuing drives And models, learn, involved, understand

taken We anything in as to being there any variant. already that the see is and learn in beyond than business that you this other haven’t accretive we decisions this are major player a us in XG business we

I I very am and As what than higher we continue business be mean itself, to Scores the average it in to country. Promoter fiber seeing in for higher-than-average Net this pleased. cable the relates business are

that’s it what people as the to and up you is churn T-Mobile informs and So saying. are them important serving love models,

to we it at of seeing earlier, and like are young some a their so of from Now and we cohorted retention. what we really in point, view very your have base a those aging look on we terms customers

pleased on you that? anything kind So really to want Score and Net you share Mike, can as that. of see why indicator Promoter you don’t of in, an else jump

Mike Katz

this base said, does decreases it really sequential that And seeing any product is is trade-offs as from a great a point, I as got from we we It’s longer Mike’s start more really heavily are great seeing what churn. you in are seeing require customer Mike would customers. cable. a it the just in cohorts to the doesn’t growing and It’s with product. tenures, that are pull NPS say

Cable quarter, that lot a business. of which a is this is XXX,XXX a in have to several this the in base about gives a biggest couple that us millions ago number plus now minus of customers period. contributor planning model delivering reliably getting years this us of talked a or confidence of go-to-market to the our at process and And we customer we built end

Mike Sievert

Okay. the model eye here, and go opportunity to want doing it we about there’s that, beyond to opportunity current kind current what where limited side before question last answering everybody that. well, do and part the others of speaks our said, to And what you was are model to we because I of a because your is have know remind

What are they right. that we like, mean and we all over I said are well, there, doing along. have

X a is which essentially we million the doing selling it be way to on our excess unit million are opportunity now, capacity We network. to unit expect right this X

mapping sectors we this that Internet household map way tower mobile on in and XG. rapidly every take up is, determined our the nationwide of applicants is which normal have them use sector high-speed wireless will every a no for remember, amount approve on every of created this to where works country, we and capacity expanding So

see So capacity. We we period. that our of selling high excess us in those planning households that, are essentially millions the takes single-digit into

of entertain question millimeter question yeah, the millimeter have whether a plan. be efficient. not, Now that to have way burden or home about would to wave we entertain would make capital And asked a part of idea XG is we capital it wave We the would smart. have would for says, a really you Internet that to that. to It broader

any taken you a decisions of haven’t a as little taken to bit We but what interested we or we the thinking it, it. I it on the want we short on know in if see that. of opportunity but of, don’t of is are haven’t kind answer course, of share our decision

Neville Ray

are Well, thanks, that so our serving Simon. Mike, today would using capacity. and great I say X.X is we spectrum we have so much question, that us well, because excess And

We quarter and by the year, giving this are also moving end now us with by POPs are from the reporting spectrum moving other XXX mid-band we of to serve covered opportunities. XXX coverage XXX towards we -- are this million HSI new opportunities

formula if doing it’s we see always reach when limited and would it makes reach limited are into I to we will an we we that are sense wave and over looking but testing, and say to trials it’s pursue that remember to it. it time economic put Then in have millimeter at in

Mike Sievert

Terrific. joining the Thanks for call.

Landon Park

much. very you Thank

Mike Sievert

please. question, next Operator, right. All

Operator

John with question UBS. proceed. Hodulik comes Our from Please next

Mike Sievert

John. Hi,

John Hodulik

Great. Hey, couple Maybe questions. Mike. a of

First the on environment. just competitive

been statement. mentioned sort from an a ladder bit has Verizon of advertising You little

we free sort some offer what doing. I been too, a of think had standpoint, Comcast success has similar and their line with Charter promotion from

you buyback of we as would And it of how slow confidence on we as of sort authorization? the the what then today the rest into you a along stands as environment pretty to existing gives the the higher sort competitive year to against look the raise on sort Thanks. bit thought numbers characterize you of the and wireless the we postpaid Just than year? in you through authorization, buyback, expect that and bump up are should the far

Mike Sievert

Great.

case through calls competitive and then It’s have that turn T-Mobile say, competitive would all version and of competition I probably will competitive there. it’s said, made this Freier. them. XX more Jon for there the buyback. So creation on XX that’s have the these to and for we I start and of And I being out competition of it of been out T-Mobile. done

I we is that have because in is through we again way of my strategy that’s What growth, and our find profitable so said and remarks time demonstrated our regardless to accretive differentiated. that mill, prepared time competitive the

all here, other I course, than going it’s to repeat not am say, So of really that to competitive.

about the find rational even have a I the industry competitors you pulsing and in been out. of competition, talked level

eyebrow in the of Some offers have but out. pulse raising been they and

feels rational competitive and we I differentiated think our to me, strategy. and look it at

within year. compete And and our tell Jon, us our through our seeing as team quarter. overall way this have your what what we maybe we But is increasing the see we guidance ground, control last to quarter for the and on

Jon Freier

Yeah.

You bet.

see, competitive like seeing our when environment, and we we to can is overall you a obviously it us demand -- So, there. When you Mike yeah, but out demand QX real continuing seeing look see incredible are look in numbers. nothing interest, manifested our at really that traffic, are you the solid at new for that’s said,

that And strong had customers our whole, earlier prime strong prepared our comments, as we we seeing and but not of really demand even demand highest a so and we far are the strong said like around fact in mix in only prime QX, customers. demand

kind since in healthy new a number are an really and to and Plus, peek that GoXG of of even we launched continuing Magenta into now there. happening what’s on accounts good We MAX very Sunday, are numbers early to switching terms we see seeing activating revenue

XX% households Analyst XX% of ambition the had areas. I happening of differentiated is, by the markets things again, position XXXX. too, that And marketplace Days, move to rural of would we tell we one to we our in at in from talked just doing what are in about what’s share you, from end and the then in to this smaller XXXX And you

excited are we what And is that halfway we really are about already there.

XX.X% are household now share our at of in We terms in position.

less So there, or than more the in halfway horizon. half than that over but time halfway planning there

when look markets, out we out building relative rural One, in what others, it’s four areas. at -- down coming this with you things is markets there network to and are the And distribution. to really doing smaller are we

We are now of XX markets playing XX% XXX households, the million people, smaller million in areas, two-thirds of U.S. real in

that really we getting basis XXX share unlocking in basis, Two, are was told you XXs. I the and Last switching switching quarter, are moving. win we sustaining up now switching points postpaids on a year-over-year with upper that

look for speed people is that ago, but happening with talked even high new Three, gets, when that that’s you at door what’s we for before as a household few thinking we a moments from Internet, just customers are us front AT&T, about catalyst moving about get Verizon, their a mobile the be services switching can thinking cetera. into into T-Mobile to about mobile, et

building hundreds smaller particular dedicated we a team focused venture different and bit stores we rural that’s what have out XXX is markets lastly, in the have those in we then than stores areas. out more little and of are we this since markets have started where And a about

it’s look then happened getting after really quality So talking look the we that at when been areas of XX% the better. under and overall you the to, never when of strong health smaller U.S. and the are from the ground, in and markets at demand real you it what’s customer

Mike Sievert

your we way the we it’s only and question have this XX% about more two two-thirds from share be really been should a the are you market rapid at been proud of just risk have I made what’s halfway to filibustering I XX.X% and years feel answer deployment, thing. it’s of So like cable. unless about competition competing talk It’s question, we there. space. -- so one of happening competition we shouldn’t and fire our Jon, in

Jon Freier

Right.

Mike Sievert

And I are give team very a competitive little good what able so predictions a of going unfolds on and we we that, as see of to couple I on our a one so each what’s the diagnostics telemetry marketplace and you. with company, thing the of make and credit the we in kind for quarter bit competitors have of happens is can pretty are on will

it we quarter. try for net saw us, saw at Charter we quarter, out, a to we numbers You well, sort of of phone into it additions unfolding in and strong. But double morning, the out least we think, try one in Comcast make decisions make when blockbuster that through operating very had what’s this things it. our is to when do we we -- figure behind and click the

what of calorie on we about are say, in net about adds. normal in non-parts like drop is adds, a they of kind you or for ago, big in this low printed example, number, And of going year see report, levels, we that, let’s XX%, sort net to uptick think, a the from prior are free line the bag

in kind our to quantitative fast of it’s to are make of that when operating the a because decisions compete, adjust to where and and how as kind run they we so we how try for happening marketplace. really -- And to easing

incumbent adds be players. don’t There’s of just printed any appear the from being new to coming that

of us to we kind that, has about all adjust it’s of at least XX% those been It looks for our make So decisions. for us, as kinds the to uptick of important nets. operating

asked your was second buyback. you about two So question questions, the actually yeah,

John Hodulik

Right.

Mike Sievert

it how play will things out Like, you in I make to turn will that And into for predictions to read Peter. let over the cannot say I of as are too couple and and any going fast we much future. wouldn’t how me a I

tell management getting a for I to deal the great getting you are buyback an your mind on are hired normal a you since make behalf, relative operating this we we about that could about or valuation. are conduct talk whether on we stock not idea relative decisions have a we But to speaking, and in us going just value. generally it’s fast because have think we not lot with to

potential of And flow developing and people for are on lot able and authorized we moving and fast. a we time. look production Board these take ahead means is quickly, for forward, are cash to one this T-Mobile of to and though, so that it be thinks see opportunity we lot at share shares we prices to have are going our so because cash diminishing a really what grab picture our it value team we us to valuing at at obviously, going a predict our a cannot rapidly step moving for increasingly relative thinks you, I and

Peter Osvaldik

and can’t am we personally of what the Board, Yeah. by generation have is, the that’s of The add, than of flow business, all allows very mentioned. only Mike, target, speak course, billion -- I we as is excited approved you about been $XX remember, anything it’s cash while the thing that how gone more I’d about this

both and through longer underpinning that frankly, for to and billion production with opportunity in free of XXXX the the this beyond. in into up we here this and regards XXXX XXXX share are $XX just end to buybacks term flow and And machine already. Remember, the of continues cash

in. based saw shareholder guidance on the that allows our at thing one already again machine once the is for the raise is was to go year the and I us return just just underpinnings a ambitious quarter But that look confidence you what

buybacks So am share are in I progressing, the pleased. that very how regard and

Mike Sievert

an We answer better you quite moving. keep We John. gave Okay. there,

John Hodulik

Thanks. Okay.

Mike Sievert

Operator, You bet. next question?

Operator

with Our Chaplin next New proceed. Please Research. question comes Jonathan from Street

Mike Sievert

Jonathan. Hey,

Jonathan Chaplin

on you some would sort The if can am are share on context same share if You be gave how do helpful. against or rest business what those I business the am the guidance? that’s business cost then give in which that’s the Freedom are of the are you around is super to I Plan But give Can then the two of of for to things to plans. where you lines accounts suggest. progress us terms exactly markets, people got, and guys. going questions and small into wondering trigger the it Phone and And the number of that in potential obviously, just a okay. EBITDA on the you looks trapped market color ARPU in a pushing on as making super ask color positive helpful? of have us Hey, you two help us customers, on any together you you year? well, can higher of for us rate you has the net as you have higher like presumably so expectations upgrade side, is impact unlock really understand the it

Mike Sievert

Okay.

Callie. but great. share lots say and is going Well, let’s behind for, that. what which what she’s things what is going numbers give of you on, racking asked market you and I for, to was probably go what’s not like on asked Sounds which some stacking exactly first will color you just of to

in keep marketplace? are of really we seeing it here fast moving details. the as and competitive to you tell are maybe We want the But what us to some

Callie Field

Yeah. for and thanks, John, Thanks, Mike, question. the

business really know You growth to making the doubling goal leader share. market that pleased we our be a in see and progress have towards I longstanding are am we very to nice

and Verizon. We in in growing are from are AT&T share taking customers and we And revenue.

opening phone declines his quarter-over-quarter, saw Heroes. reported in FirstNet net Connecting as Verizon. in AT&T we and a X.X QX, in churn our while remarks, And better all adds our Mike mentioned business our account in were times growth, than fact, growth phone In

So we are winning winning across and every segment. we are

and exclusive our to for In UPS, partner our connectivity we develop Dialpad selected partner, companies the selected nationwide were tool T-Mobile, and These solutions. of all Energy the using Oracle, Siemens with value roadside because exclusive AAA the like be Resorts. Dell are choosing network. T-Mobile quality, of their partners a are that performance collaboration Enterprise, in to the phone

for In of with lines, create years been as as we XX,XXX just for team as Affairs. that I nine will partner VA The the with the have a over primary well I solutions work health selected Veteran phone the T-Mobile doing proud XG to am actually government add, the space, vertical. really in care

So we are that. excited very about

in In Verizon we say can port SMB, quarters is trends in I seen positive for net four have straight row. versus a what that, SMB

also product it’s a So like superior and experience. the value, but I great profitable not said, rates, great CLVs, only best competing on

businesses know because surpassed buy product the we You the and have competition. tested they

Mike Sievert

canary businesses out us, fact check these because making that shared, Callie, decisions mine in for so phones, that of of It that They like fact, hundreds the before brand could actually on too, aren’t them much reputation. that you bit the compare little going head-to-head. and be a sometimes a of coal just last us

now only network that their into is actually guys you customers. the do if going have in best incumbent those their are we the keep that’s what going testing that well, the questions so this we competing now prices process. missed decision is and that to factor businesses get how And not about, slashing dialogue And through keeps to just hang to on

Callie Field

Yeah.

Mike Sievert

They was mean mission-critical for because are have this but network. a I businesses the lines are save couple way picking take liable some I corporate them mean Un-carrier, we the would responsibility us it’s can a reason. best I money. want connection, And years we of the to and been breakthrough they not same that’s the for case say a we that are ago. because

hearing lot there. optimism are a So you of

kind is thing a a of the lines going the listened what we in interested did industry That can you saying, were One and hear in layoffs, decline saying. Callie our aren’t here on. of of sort is lots there’s business is in sort optimism pause a there’s happening, as of we in, experience of sector anymore, companies not some that hey,

about your Okay, Freedom and going question there. second what’s was on Phone

we was there outlook start with Mike maybe associated question So then particular and a EBITDA with Peter. will

Mike Katz

has rate GoXG, components before, Like you was to the kind as into it. this of of Yeah. built upgrade had mentioned plan it. One Phone benefit big Plus, I indicated, Freedom Jonathan, which, GoXG two

XX% Mike of that it’s program have, question second Verizon then the a which going the Easy is the Unlock. Easy they in promotional both in T-Mobile. to of insight And also input important their what part really more terms thing, than Unlock, we asked is, I leave you AT&T and customers the talked launched about off is the of carrier called to current the dissatisfaction second what reports And an want think the that

also that’s And to it’s customer industry. unfriendly but entire And long-term disproportionate what we that unlock one think winner. incredibly things pool of we little both switcher with is the contracts, make wanted most really bit, what of that’s that leave, and when happens, because a will the I incredibly did program. difficult, switching know process And to do they want because us which in they the easy have unlock help T-Mobile the the when is we

Peter Osvaldik

Yeah. year And with the half us, even the frankly, here. what this time. EBITDA they MAX at of back Customers value, end, especially regards, had certain I were we level through telling at for looking Jonathan, form year provide the are of in opportunity a that already combination network last guidance, assumed clearly Magenta mean, best the best to can of

an out inspiration so more that even were going was And said pack to plan fully we we there. an featured that

of all say core customer leading the I’d acquisition we well packed into all you. to to EBITDA, as around So as CLVs this, assumptions provided the guide revenue high is that

of QX, know and QX, had well, on question went was how well the in that was business I asset the that the really -- but contract contract there continued of some that that some social impact as promotions. say frankly, the place sequentially was into a around from also -- does we asset, as and to up promotions

EBITDA actually put core gave. net But to an the impact asset that there’s will decrease assumption out again, there, for and contract we the in in the immaterial an the guide that current current guidance we year, quite that

Mike Sievert

stuff. Good

Okay.

Jonathan Chaplin

Great. Thanks, guys.

Mike Sievert

to in on go over we the coming do ones How Twitter.

and popular topic ready, you there’s always -- always get online. all is So popular your are

talk Ho Let’s to about, -- Bill stats really tell us And the depth he’s [ph], breadth. network. some and will see. the I I this you about can to I think here, is want really giving about but about is question go

and million. we kind talk last people the million how is easy how hard is compare ahead of can in now it and right But is interesting How easy last depth, ultra-capacity or where where are these XX or hard So them. also competitors we the or have of spectrum if that’s XG in you and that, XXX going? to million are mid-band you million are then covered the by still going we it what’s about XXX XXX much in to

Ulf Ewaldsson

we are to Right. if continue start XX and are reporting we million you the as and we I out build have go. here the -- XXX now mean breadth, about to million with we catch

XX We I we that XXX you harder say of And million the very It confident that, and a the by add. rule reach every would to thumb, X that gets harder million end as harder. going it’s the year. are are about times of for

how about that’s gets. it So hard

density geography the very very communities. in And geography the of with it’s vast the where population U.S., course, high reason of some is, a a

and very going that plan are confident that easy it out gets start to But we build do harder that So we and to today. it’s you with very are reach harder when it. we the have

just depth which dedicated giving over of tremendous network, We our how from it’s is amazing XG. megahertz us XXX When move mid-band, just it frequency comes more to the on more assets we to and speeds. to the today continue have LTE

quarter on mid-band. of our and this with XXX dedicated year we just the advantage to increased have last the the We downlink spectrum in to up megahertz competition speed compared are speeds on actually end going

our moving with fantastic So it’s to just journey forward see tech team. that

Mike Sievert

passing you this is says competitors when too, each day, corresponds Ulf of rapidly a is listen where expanding. to POPs, our fascinating It’s million the to with first network what generally how are. means that part easy thing XXX-and-something the Which capacity right, about overall which

And with are the year. in guys of a year hopefully, see about, of out the are we so get we at they can questions hey, you a understand couple end you And lot lead where catching aren’t when you. we already XG, where you and jumped

a the difficult really behind it’s part for still really that has important perception years and brand. Now us because that there’s the customer about last overall is

great have with offering. capacity urbans a high core be have you somebody You a high believe capacity to to outside the for offering

all them time. to matters that And they the space don’t even that leave if

it’s So a it’s and important, we have durable the leap. one many of really reasons why

Operator, go calls? it. please? to we do Should back Let’s Okay. next the question,

Operator

proceed. Our with next Goldman Feldman comes Please question Brett from Sachs.

Brett Feldman

Yeah. Thanks question. my for taking

Mike Sievert

Brett. Hi,

Brett Feldman

Mike. Hi,

So you talking made you an interesting were churn. about observation when

because interesting have And pointed that’s cohorts profile peers. the You this exhibit you you category. also as also base a best improvement that year-on-year yet that have group churn than very your lowest you in you you out churn your the noted had at large comparable and lower churn, don’t that in in noted customer cohorts a but

churn keep So driving opportunity the it certainly across seems an base. down like to there’s

you some -- continue to is still hit elevated, So much actually think Thanks. you churn driving your lower why the of churn that profile how plan is or an have do look your opportunity sort do part you of where you think at customers underlying about how when is and pockets plateau? business it of is the that of

Mike Katz

are our Yeah. moment of we a at in sort Thanks, Brett. the Listen, of company. historical history I fascinating think,

about first six then allow of we have Verizon LTE the company you last about and and in XG on place would the and era the spent from dreaming our integrating to comprised then of completing era. to that place years chapter it, being think us leapfrog AT&T in the If merger

that best values merger. And and we in network best generally we now have have done, the we gotten have have the generally that the completed we country,

convince do American And work so now to that have public we the true. to it’s

the to industry, T-Mobile of the little And rates even that a did advantages network of churn lowest by achieve the the bit am without me, journey standalone the strength. I inspired in

you And really prime so see us on focused customers. now

highest our the in the of history have company right now. prime We rate

see customers. You focusing us on business

waking the best the now true time. You that’s them to industry the up that take of see the and will T-Mobile that us in focusing a journey, is is what’s on travelers, country convincing the choice fact and some more best for more customers true, some

you your lowest postpaid And industry it it have have But are on to churn yes, to we let tell in -- our the our on goal phones. already me postpaid to prepaid, we is answer is, goal going the phones. on this, have question the

we course, should. Of

should best we have network the have the means churn. That and prices. I mean the lowest we best

through worst have T-Mobile. been to journey we so before And this standalone we first

version full about optimism of and the We of company new finally through it with are it land. the can of where kind midway

lurches of mostly the behind because merger-driven Those us. are integration big kind sort is quarter-by-quarter of right, forward us, behind

do that could showed hard we just T-Mobile. standalone slog like when were it’s now we you we So

Brett Feldman

you. Thank Okay.

Mike Sievert

Okay.

You Great. bet.

Next question, please?

Operator

Michael Rollins question proceed. next comes with Please Our from Citigroup.

Mike Sievert

Hey, Michael.

Michael Rollins

Two Hi. afternoon. and good Thanks questions.

and eSIM helping have they important spectrum, to propel industry you and back a customer on secondly, going the the topic if is next will exercise that’s opportunities? what First, steps band? to megahertz the unlock don’t, visibility that option and your opportunities, to is switching is capabilities just you XXX whether to then And spectrum and T-Mobile this respect T-Mobile DISH unlocks not for its on or where do buy with

Mike Sievert

eSIM one extension asked XX will to one. Great. a about in think to I start it of give that the yet. no, the up We decision. with and chance for object Mike The have the DISH an answer and visibility DISH on then we -- days. don’t into didn’t

And the entirely decree works up is way it’s our to consent them.

to them will here are support with Charlie. am hear and We in so decide. we I wait touch to they what

helpful engage learn be more, and may So as that. I to be able we in

so them consent the the -- to to the they up way would in maybe the it it’s the spectrum be auction someone way and that is and works theirs. it’s not, of would And it if go it works is it hands else. it’s under decree, of terms entirely want if the But

are and so we and support decision make. here whatever we see will that all unfolds how to wait it they And

how about is and all that On happened it. this been hasn’t there industry fascinating eSIM, much this has discussion across the

has phenomenon Phone been phone about the with this One limiters of are locking talking that we Freedom.

friction promised. phone, is the can’t system, been the you may even of eSIM is available, an eSIM on the coming SIM though to some very if second so that is that phone with out the way easily what still happens barriers SIM and use be second Because locked, locked a there’s

big But we fans of it. are

to you a months be great give fun maybe for introduced some try That’s on second network color to lot ago, the actually what us allows seeing. phone SIM that. are switching our a we drive our saw for on test But, You of your been can network. few to capabilities if you people able Mike,

Mike Katz

going really something similar. Yeah. to I was say

we better One, really eSIM, experience. a of fans it’s big reasons. are for two customer think big We much

in out when don’t years and are and to deal couple switching every of plastic with You have people of upgrading. your phones

where happens, does we of advantage that for eSIM we app when And company switching take the test you when the you and phone mentioned to you can and earlier, incumbent with on easily easier that launched switching switch, a clicks. with have just an where that do ready tried the same of network can to in side-by-side technology T-Mobile a couple network Mike wins are it make your

eSIM. are of we So fans

even We help accelerate optimistic that are programs Phone we Freedom. supportive really we will are about that talked and that it, today of with it

Mike Sievert

about… How Okay.

Michael Rollins

real Just quick…

Mike Sievert

talk to … T-Mobile for [ph] want Business. twitter, Roger about Adler

impact unless question in for I provide on our are GoXG prices, growth. think then what any think Business. seeing subscriber you they with our will that hit with to raised And we plans, that, HSI we new a are of we color do T-Mobile most want about, separate

that, am in this way And I did to the kind we fact, immediately asked you be we because, added these is And plans won’t of added that everybody, glad no. and them. we obvious but

online, you can if MAX. Magenta So Magenta retailer still you and present at get

in because I plans that customers be popular put all. fact we notwithstanding design have worried to But going added, want so are turning the out in they marketplace. early at they not These plans, hearing we really now them worried am we and really that being there, are the -- right them are the needs very to are out days, be even these new the popular not that am I to

reason. because thing, interesting an a really we for called is GoXG this And it

smartphone, MAX killer And There XG, are of say, them a GoXG real Our if of amounts on massive massive app of but customers our XG for it what’s now Plus, XG. on apps you have up are using differentiator is of T-Mobile or one have customers you killer us. lot soaking that’s people of are which and your and Magenta data usage the a and connectivity network.

so into to without that what they encourage that advantage going their and not because of to they And are kind want play see do, phone it. can usage, we live want once to

that Magenta of already are customers now seeing above. scale at or We at with millions MAX

Okay.

go Jud. back let’s So phone, to the

Jud Henry

do Let’s it.

Mike Sievert

please? question, next Operator,

Operator

MoffettNathanson. Please question Our comes next Craig with from proceed. Moffett

Craig Moffett

network spectrum? liquidation stay DISH story. for openly FCC were more and be a to wonder might for have that sort my how to just XG, network to may you theme to advantage? eventually update expected. been minute. the have if and if it happen be is questions, you willing, how of the spectrum been resources is just new that of with which slower discussed proceeding I with quickly it growth want If and more is you the the than It’s usage if consumption question, Hi. Yeah. respect appetite the on with into XG more given do leads XG a develop applications One were hoped DISH that is could had becoming somewhat I and your And differentiator to I could. much expected and if have second and us Two

Mike Sievert

one will to and Yeah. Mike second the I Look, first the on turn one. for

hypothetical He course, lines whether all very was because a a DISH to the we John headlines of buy time wants of did he one, unfairly spectrum, first am innocent not kind I of and interested gave kind answer it along and my spectrum. of think of the misquoted. answer the Craig, he of are any are to to there there’s I kinds an he On friend, going think it, answer

him say, will out I known I all, have long too. for premature count of a DISH or first think, time. don’t a I Charlie Listen, question it’s I very little easily.

question. I think a it’s premature So

American wireless But an this enough issue. spectrum does never, that And way, if then long is, policy. haul public raises for finally, opportunity industry say to and more which over larger you it this competitiveness. it there’s I’d have the a speaks for reframe always

others spectrum urging with work we its The that’s restore an auction lost regulatory country to for world. body this have and ongoing be to able we need can create players continue industry year long-term that our to connectivity strong the agencies, FCC have so been Congress in that, this the of and the authority all best pipeline other in T-Mobile because this to in

going that there’s I But track get American feels with And that important also pending and important work FCC way. that’s there in the that think for lead because well its space and for able think completed it’s done this FCC I that they be way. regains that the have company, very competitors the to consumer, competitiveness. past. actions my our And on that forward, back that’s are to the so our for but this very get use presume put way competitors, in authority we I for the to feel quickly American know I

-- second of came out apps this lot is of we and and it millimeter in I a of -- of the hype connectivity about euphoria our led kind kind XG and and was stuff to with all are XG. world around way gigabit going question human will of Your change say on and competitor’s in be XX to wave it the cyborgs it’s like kind that. sort going

mean they going kind first times broadband. and to at XX to at And felt our better are of are apps early a better, be ability to and to never least smartphones we going went XG the we killer way. XG much is on, get right I like after home be that that

were asset average in got the And they we times the the is T-Mobile faster. XX the amazing. industry times getting mid-band eventually the And XX customer followed. focused and of that That’s rest right. We XXXX, on connectivity

And unfolding. so is so what it and that with is are doing obviously amazing they

in a best And they great around, a network hardware innovations is our create I’d is software reality is would this create we have think, come? all look still I there’s and the choose which to and to questions eye where the augmented But network the of of And well, say, country. job people will side you all, said kind as get, to first developers T-Mobile.

they parts moving choose than starts network in be or and and as that doesn’t not We our to Whether connectivity, just with much. they inspired predicted, faster uniquely are the they the slower to and Anything we affect get fits provide massive business up this that add? directly the T-Mobile they that’s across why country work the way but pace we and country, But to the developers that’s them. do. all rate way go, of with need can

Mike Katz

over HSI, you not The apps is only I I’d let’s out the XG still seeing of do the play XXX house because on right that, markets. their hundreds running big think thing million wireless and using both other of big gigs network now. for in our customers Internet in X.X are that forget one their a top home add killer average, XG about month is HIS,

first and customers that option only is XG. of existed high-speed areas, also But which it some of in happened because the many this rural importantly,

forget I we So big don’t one killer XG can about think being those HSI applications. of

Mike Sievert

Terrific. That’s right.

Craig Moffett

That’s helpful. Thank you.

Jud Henry

All right. Operator, we question. more for have time got one

Mike Sievert

last one the It’s already. Oh!

We getting are warmed just up.

Operator

Great. right. All

question of comes David from Please next Our with America. Bank proceed. Barden

David Barden

on so and remaining you other prices you answer that about The to buyback -- stock kind kind state, plan. for performance business against in that kind now states, expired of clean just Yeah. Un-carrier out that But raise happened, want could you give of with or of years to level. relative and stock. top-up I yourselves would has is, prices April taking you just and of the any new Thanks most Hey, or Thanks would your guys. a are the positioning within thinking in able to that elegant to your And the know in of back to with it, X, I The how the the comments glad warm. would be you the question you to to much this question as notion brand Mike. is this us pledge for think to and originally then I of three the conversations do second not and XX.X be kind million. you keeps XXXX, it’s it, sense your if that most guess SoftBank Thanks. be what for I hear that? been your which exercise came first market? love non-disruptive bumping come things question. the inflation great It but am kind frame your it about up XXX is in and I way to DT been the toolkit And how the T-Mobile’s the like T-Mobile and there raise using Has simply and evolution seems between I’d of then SoftBank shares not up? every whole want authorization of

Mike Sievert

the have the entire pricing maintain that Sure. decade Un-carrier of long Yeah. superior competitors benchmark an and journey We for to for of our envelope versus continue. intend and we

move, being got static to we maintain value. of Now and but as about of always things or price has not matter shift that price a static, be a want it’s sort be we relative always a to and envelope dogmatic

we right the have we because have to the advantages benchmark allow And continue we competitors. a structure, a balance have versus can envelope sheet, to profitably have that and structure right do superiority our capital we other sustainably us great pricing that spectrum

our But with market care to things North those with and of or of. take us along otherwise, are to But customers move value inflation course, brand proposition opportunity the in as there’s the Star things. move an for have we

Plus, our so customers love have really brand higher self-select it. we offers offering or like their that now on shows you us when why it something that to put Magenta flock they MAX to GoXG out for and up value there seen focused That’s

customers our us the appreciate of in inflation, lot between of of a about because front this they the are putting covenant our brand. and voluntarily They speaks an era value customers are That them. on the rate buying our up brand card what -- and in we about

Okay, question SoftBank price your there true-up was shares. shares stock $XXX is about first everybody, to would some million XX-day kind the XX upon And VWAP. at trigger that an remind of just average being this

all of talk talk question ours. the is, We close And are I course, we to of of the them. DT to time. to course, short mean, answer a They partner your

We this nothing of question are aware to have this report. and issue. we But

everyone. it’s interest, the And to lost something so a asking of has are why it -- but If be was be to on I mean you transaction, not would that work question. for and ever it’s us there

will this program I should the we say outlook capital a about have going it that this, back question to to as shares more would. buy we continue bought than support event shares buyback and forward, intend lot dilution our back our potential pace, already more have and we earlier

And our small potential of cash production in grand so this a is the scheme shareholder fairly that remuneration event supports. actually the flow

with to anyway, that, And so to that? add anything

Peter Osvaldik

No. Great.

Mike Sievert

add Anything said. Perfectly show? the to whole to

Peter Osvaldik

go must on. show The

Mike Sievert

for All people I watch fascinating tuning in and perceptions us appreciate questions. It’s it all was It these for a all year. team. to you right. proud Well, started our am asking we of so have. for fascinating different Thanks guys. and the how

But you show time one on from thing and promised am what are up that proud do we to for focused would this is a be quarter was going what to us put that we down you try delivering away team do that, were I every I of. proud outlook and and one to we we you where great we in single so and are XXXX we for maniacally you results able take that’s hope that more

So you tuning See thanks for everybody. later.

Operator

for your T-Mobile the Ladies gentlemen, participation. concludes first quarter this and thank you We earnings call.

Have may You disconnect. day now a pleasant everyone.

We use cookies on this site to provide a more responsive and personalized service. Continuing to browse, clicking I Agree, or closing this banner indicates agreement. See our Cookie Policy for more information.