Summary
T-Mobile US, Inc. (TMUS) reported its second-quarter 2015 financial results, showing continued revenue growth driven by its "Un-carrier" strategy. Total revenues for the six months ended June 30, 2015, increased by 13% to $16.0 billion year-over-year. This growth was primarily fueled by an increase in branded postpaid and prepaid service revenues, reflecting successful customer acquisition and retention initiatives, particularly the "Un-carrier" value propositions. The company continues to invest heavily in network modernization and spectrum acquisition. Capital expenditures for property and equipment reached $2.2 billion for the first half of 2015, with a full-year projection of $4.4 billion to $4.7 billion. T-Mobile also secured additional AWS spectrum licenses for $1.8 billion in early 2015. Despite increased operating expenses related to customer growth and network expansion, Adjusted EBITDA saw a significant increase of 26% for the first six months of 2015, reaching $3.2 billion. However, Free Cash Flow was negative at $(0.523) billion due to substantial capital investments.
Financial Highlights
52 data points| Revenue | $8.18B |
| Cost of Revenue | $2.66B |
| Gross Profit | $5.52B |
| SG&A Expenses | $2.44B |
| Operating Expenses | $7.58B |
| Operating Income | $597.00M |
| Interest Expense | $257.00M |
| Net Income | $361.00M |
| EPS (Basic) | $0.43 |
| EPS (Diluted) | $0.42 |
| Shares Outstanding (Basic) | 811.61M |
| Shares Outstanding (Diluted) | 821.12M |
Key Highlights
- 1Total revenues grew 13% to $16.0 billion for the first six months of 2015, compared to $14.1 billion in the prior year period, driven by strong performance in branded postpaid and prepaid services.
- 2Branded postpaid service revenues increased 13% to $7.8 billion for the six months ended June 30, 2015, supported by an increase in average customers and successful "Un-carrier" initiatives.
- 3Adjusted EBITDA increased by 26% to $3.2 billion for the six months ended June 30, 2015, indicating improved operational efficiency and profitability.
- 4Capital expenditures for property and equipment were $2.2 billion in the first half of 2015, with the company projecting $4.4 billion to $4.7 billion for the full year, underscoring significant investment in network modernization.
- 5T-Mobile secured approximately 97 million people-pop coverage AWS spectrum licenses for $1.8 billion in January 2015, enhancing its spectrum portfolio.
- 6Branded postpaid phone churn improved to 1.31% for the six months ended June 30, 2015, down from 1.47% in the prior year, indicating better customer retention.
- 7Free Cash Flow was negative at $(0.523) billion for the six months ended June 30, 2015, primarily due to substantial investments in property and equipment for network upgrades.