T-Mobile US, Inc. Quarterly Report for Q1 Ended Mar 31, 2015

Summary

T-Mobile US, Inc. reported a net loss of $63 million ($0.09 per diluted share) for the first quarter of 2015, a notable improvement from a net loss of $151 million ($0.19 per diluted share) in the same period last year. Total revenues increased by 13% year-over-year to $7.8 billion, driven by strong performance in branded postpaid and prepaid services, as well as robust equipment sales. The company continued its aggressive network modernization and expansion, investing heavily in LTE technology and spectrum acquisition, which is crucial for its future growth and competitive positioning. The company's "Un-carrier" strategy appears to be resonating with customers, as evidenced by the increase in branded postpaid service revenues and a slight improvement in branded postpaid phone churn. Despite the ongoing investments and the reported net loss, T-Mobile is focused on growing Adjusted EBITDA, which increased by 28% to $1.4 billion, reflecting improved operational efficiency and revenue growth. Investors should monitor the company's substantial capital expenditures and its ability to translate network investments into sustained profitable growth.

Key Highlights

• 1Total revenues increased 13% to $7.8 billion in Q1 2015, driven by strong postpaid, prepaid, and equipment sales.
• 2Net loss improved significantly to $63 million from $151 million in Q1 2014.
• 3Adjusted EBITDA grew 28% to $1.4 billion, indicating improved operational profitability.
• 4Significant investment in network modernization and spectrum acquisition, with $1.0 billion in property and equipment capital expenditures and $1.4 billion for AWS spectrum licenses in Q1 2015.
• 5Branded postpaid phone churn improved to 1.30% from 1.47% year-over-year.
• 6Total customers grew to 56.8 million, up 15% year-over-year, signaling continued market traction.

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