T-Mobile US, Inc. Quarterly Report for Q3 Ended Sep 30, 2017

Summary

T-Mobile US, Inc. reported robust financial performance for the nine months ended September 30, 2017. Total revenues increased by 9% to $29.8 billion, driven by strong growth in both service and equipment revenues. Service revenues saw a 9% increase to $22.4 billion, largely due to customer base expansion fueled by T-Mobile's "Un-carrier" initiatives and the success of the MetroPCS brand. Equipment revenues also grew by 11% to $6.7 billion, reflecting higher average revenue per device and increased purchases of leased devices. Net income saw a significant jump of 71% to $1.8 billion, benefiting from improved operating income, a lower effective tax rate due to valuation allowance adjustments on deferred tax assets, and a reduction in interest expense. The company also demonstrated improved operational efficiency, with Net cash provided by operating activities increasing by 30% to $5.9 billion and Free Cash Flow surging by 130% to $1.6 billion. Significant investments in spectrum licenses, including the substantial acquisition in the 600 MHz auction, highlight the company's strategic focus on future growth and network capabilities.

Key Highlights

• 1Total revenues increased 9% year-over-year to $29.8 billion for the first nine months of 2017.
• 2Service revenues grew 9% to $22.4 billion, driven by customer base expansion and 'Un-carrier' initiatives.
• 3Net income rose significantly by 71% to $1.8 billion, aided by lower tax rates and reduced interest expenses.
• 4Net cash provided by operating activities increased 30% to $5.9 billion.
• 5Free Cash Flow saw a substantial increase of 130% to $1.6 billion.
• 6The company invested $8.0 billion in acquiring 1,525 licenses in the 600 MHz spectrum auction.
• 7Total debt stood at $28.3 billion as of September 30, 2017.

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