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T-Mobile raises 2021 guidance across the board again and delivers record financial results in Q2

By Hemanth on Aug 01, 2021 | 05:31 AM IST



T-Mobile US, Inc. [TMUS] reported second quarter 2021 results today, delivering industry-leading postpaid net additions and record service revenues, Core Adjusted EBITDA and Free Cash Flow, while raising 2021 guidance across the board for the second consecutive quarter. The company’s diversified growth strategy and network leadership contributed to record postpaid account growth and industry-leading sequential churn improvement.

“Stellar postpaid customer gains and industry-leading service revenue growth translated into industry-best growth in profitability and cash flow, and drove another beat and raise quarter – all fueled by unprecedented synergies that only T-Mobile can deliver,” said Mike Sievert, CEO of T-Mobile. “As we capitalize on our 5G leadership, it’s increasingly clear that our unmatched network, outstanding value and customer-centric experiences are setting the Un-carrier apart from everyone else.”


Record Financial Results

•Total revenues increased 13% year-over-year to $20.0 billion and total service revenues increased 10% year-over-year to $14.5 billion in Q2 2021, driven by continued customer growth and higher wholesale revenues.

•Net income increased year-over-year to $978 million in Q2 2021, 8x more than last year, primarily due to continued service revenue growth and synergy realization. Diluted earnings per share (EPS) increased year-over-year to $0.78 in Q2 2021, including merger-related costs, net of taxes, of $453 million, or $0.36 per share.

•Adjusted EBITDA was $6.9 billion and Core Adjusted EBITDA increased 7% year-over-year to a record-high of $6.0 billion in Q2 2021.

•Net cash provided by operating activities increased $3.0 billion year-over-year to $3.8 billion in Q2 2021, primarily due to a one-time impact related to the settlement of interest rate swaps in the prior year of $2.3 billion.

•Cash purchases of property and equipment including capitalized interest increased year-over-year to $3.3 billion in Q2 2021, primarily due to the continued 5G network build-out and network integration activities related to the Sprint merger.

•Free Cash Flow, excluding gross payments for the settlement of interest rate swaps, increased year-over-year to $1.7 billion in Q2 2021, primarily due to higher Net cash provided by operating activities, partially offset by higher Cash purchases of property and equipment including capitalized interest.


Consistent and Profitable Customer Growth:

•Net customer additions of 1.4 million in Q2 2021 increased 107 thousand year-over-year and the total customer count increased to a record-high of 104.8 million.

•Postpaid net customer additions of 1.3 million in Q2 2021 increased 164 thousand year-over-year.

•Postpaid phone net customer additions of 627 thousand in Q2 2021 increased 374 thousand year-over-year, and postpaid phone churn of 0.87% improved sequentially for the second consecutive quarter.

•Postpaid other net customer additions were 649 thousand in Q2 2021.

•Postpaid account net additions of 349 thousand in Q2 2021 increased 248 thousand year-over-year.

•Prepaid net customer additions were 76 thousand in Q2 2021, and record-low prepaid churn of 2.62% continued to lead the industry.

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