01—Abstract
Summary
Summary of the 10-K filed February 11, 2022. Cited figures are marked; the original filing is the authoritative source.
T-Mobile US, Inc.'s (TMUS) 2021 10-K filing highlights a year of significant growth and integration following the merger with Sprint.
The company reported substantial increases in total revenues, driven by strong postpaid and wholesale segment growth, alongside a notable expansion in equipment revenues. T-Mobile continued to invest heavily in its 5G network build-out, acquiring new spectrum licenses and upgrading infrastructure, positioning itself as a leader in 5G deployment. Financially, T-Mobile demonstrated robust operational performance with increased Adjusted EBITDA and Free Cash Flow, underscoring its ability to manage its substantial debt load.
Despite facing challenges such as the lingering effects of the COVID-19 pandemic and a significant cyberattack, the company maintained its strategic focus on customer acquisition and network expansion. The report also emphasizes the company's ongoing integration efforts, commitment to human capital development, and its proactive approach to environmental sustainability and corporate governance.
02—Key points
Key Highlights
- Total revenues increased by 17% year-over-year to $80.1 billion, driven by strong performance across postpaid, wholesale, and equipment segments.
- The company experienced robust customer growth, with total customers reaching 108.7 million, a 7% increase driven by strong postpaid net additions.
- T-Mobile continued to lead in 5G network deployment, expanding its Ultra Capacity 5G coverage to 210 million people and its Extended Range 5G to 94% of Americans.
- Adjusted EBITDA saw a 10% increase to $26.9 billion, and Free Cash Flow, excluding certain items, grew by 88% to $5.6 billion, demonstrating strong operational and financial execution.
- The company made significant investments in spectrum licenses, acquiring C-band spectrum for $9.3 billion in Auction 107 and mid-band spectrum for $2.9 billion in Auction 110.
- T-Mobile reported undertaking significant merger-related costs, totaling $3.1 billion in 2021, primarily for integration and restructuring activities, with further integration expected to continue.
- The company disclosed a criminal cyberattack that compromised data of millions of customers, leading to increased cybersecurity investments and ongoing investigations and litigation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2021filed February 11, 2022Financial Statements
FY2021 against FY2020
| Line item | FY2021FY2020 | Change |
|---|---|---|
| Revenue | $80.12B$68.40B | +17.1% |
| SG&A Expenses | $20.24B$18.93B | +6.9% |
| Operating Expenses | $73.23B$61.76B | +18.6% |
| Operating Income | $6.89B$6.64B | +3.9% |
| Interest Expense | $3.19B$2.48B | +28.4% |
| Net Income | $3.02B$3.06B | −1.3% |
| EPS (Basic) | $2.42$2.68 | −9.7% |
| EPS (Diluted) | $2.41$2.65 | −9.1% |
| Shares Outstanding (Basic) | 1.25B1.14B | +9.0% |
| Shares Outstanding (Diluted) | 1.25B1.15B | +8.7% |
05—Questions
Frequently Asked Questions
What was T-Mobile's financial performance in 2021?
In 2021, T-Mobile reported total revenues of $80.1 billion, a 17% increase year-over-year. Adjusted EBITDA rose by 10% to $26.9 billion, and Free Cash Flow (excluding certain items) significantly increased by 88% to $5.6 billion. The company added 6.7 million net customers, bringing its total to 108.7 million.
What were the key strategic initiatives and investments made by T-Mobile in 2021?
T-Mobile continued to prioritize its 5G network expansion, investing heavily in spectrum licenses by acquiring C-band spectrum for $9.3 billion and mid-band spectrum for $2.9 billion. The company also focused on integrating its operations post-merger with Sprint and enhancing customer experience through its 'Un-carrier' strategy.
What were the major challenges or risks highlighted in the filing?
The filing highlights several risks, including the ongoing impact of the COVID-19 pandemic on operations and supply chains, intense competition within the wireless industry, and the material impact of a criminal cyberattack discovered in August 2021, which led to data breaches affecting millions of customers. Significant merger-related integration costs and a substantial level of indebtedness were also noted as key risks.
How is T-Mobile managing its debt and capital resources?
T-Mobile has a substantial debt level but demonstrated strong cash flow generation, with Net cash provided by operating activities at $13.9 billion and Free Cash Flow at $5.6 billion (excluding certain items). The company has various credit facilities and actively manages its debt through issuances, redemptions, and refinancing. T-Mobile does not currently pay dividends, reinvesting earnings back into the business.
06—Continue