01—Abstract
Summary
Summary of the 10-K filed February 17, 2016. Cited figures are marked; the original filing is the authoritative source.
T-Mobile US, Inc. reported a strong financial performance for the year ended December 31, 2015, demonstrating significant growth in total revenues, which reached $32.1 billiona, an 8% increase year-over-year.
This growth was primarily driven by a 14% increase in branded postpaid revenues and an 8% increase in branded prepaid revenues, reflecting the continued success of its "Un-carrier" strategy and network improvements. The company also saw a substantial increase in net income to $733 millionb, up from $247 million in the prior year, and an improvement in Adjusted EBITDA to $7.4 billion. T-Mobile continued to expand its network coverage and capacity, with its LTE network covering 305 million people.
The company also focused on customer retention, evidenced by a decrease in branded postpaid phone churn to 1.39%c. The "Un-carrier" initiatives, including no annual contracts, unlimited streaming, and international roaming benefits, continue to resonate with customers, driving strong net customer additions of 8.3 million. The company remains committed to investing in network expansion and spectrum acquisition to support future growth.
02—Key points
Key Highlights
- Total revenues increased by 8% to $32.1 billion in 2015, driven by strong customer growth and "Un-carrier" initiatives.
- Net income significantly increased to $733 million, up from $247 million in 2014.
- Adjusted EBITDA grew by 31% to $7.4 billion, indicating improved operational profitability.
- Branded postpaid phone churn improved to 1.39%, showcasing enhanced customer retention.
- Total customers grew to 63.3 million, a 15% increase year-over-year, with 8.3 million net customer additions.
- Capital expenditures for property and equipment were $4.7 billion, reflecting ongoing network investments.
- T-Mobile significantly expanded its LTE network coverage to 305 million people.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, T-Mobile US, Inc. kept $0.02.
- Revenue$32.47B100.0%
- Cost of revenue−$9.34B28.8%
- Gross profit$23.12B71.2%
- Operating costs−$20.64B63.6%
- Operating income$2.48B7.6%
- Interest, other & tax−$1.75B5.4%
- Net income$733.0M2.3%
Where FY2015 revenue went
$32.47B- Other operating costs: $10.46B, 32% of revenue
- SG&A: $10.19B, 31% of revenue
- Cost of revenue: $9.34B, 29% of revenue
- Net income: $733.0M, 2.3% of revenue
- Interest, other & tax: $1.75B, 5.4% of revenue
Kept 2.3% as net incomeNet income $733.0M · 2.3%
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 17, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $32.47B$29.56B | +9.8% |
| Cost of Revenue | $9.34B$9.62B | −2.9% |
| Gross Profit | $23.12B$19.94B | +15.9% |
| SG&A Expenses | $10.19B$8.86B | +15.0% |
| Operating Expenses | $29.99B$28.15B | +6.5% |
| Operating Income | $2.48B$1.42B | +75.1% |
| Interest Expense | $1.08B$1.07B | +1.1% |
| Net Income | $733.00M$247.00M | +196.8% |
| EPS (Basic) | $0.83$0.31 | +167.7% |
| EPS (Diluted) | $0.82$0.30 | +173.3% |
| Shares Outstanding (Basic) | 812.99M805.28M | +1.0% |
| Shares Outstanding (Diluted) | 822.62M815.92M | +0.8% |
05—Questions
Frequently Asked Questions
What was T-Mobile's primary growth driver in 2015?
T-Mobile's primary growth driver in 2015 was the continued success of its "Un-carrier" strategy, which focuses on addressing customer pain points through innovative service plans and a commitment to customer experience. This strategy led to strong branded postpaid and prepaid revenue growth and significant net customer additions.
How is T-Mobile investing in its network infrastructure?
T-Mobile is significantly investing in its network infrastructure to enhance coverage and capacity. This includes the ongoing upgrade to LTE technology, the build-out of its 700 MHz A-Block spectrum, and the acquisition of additional spectrum licenses through auctions and private transactions. Capital expenditures for property and equipment were substantial in 2015, underscoring this commitment.
What is the company's approach to customer retention?
T-Mobile focuses on customer retention through its "Un-carrier" initiatives, which aim to provide value, simplicity, and a superior customer experience. Evidence of this focus includes a reduction in branded postpaid phone churn to 1.39% in 2015, indicating increased customer loyalty and satisfaction.
What is the significance of the JUMP! On Demand program?
The JUMP! On Demand program allows customers to lease new devices and upgrade them up to three times a year with no extra fees. While it drives customer acquisition and loyalty, it also impacts revenue recognition, shifting revenue from immediate equipment sales to longer-term lease revenue and increasing depreciation expenses related to leased devices.
06—Continue