T-Mobile US, Inc. Quarterly Report for Q3 Ended Sep 30, 2019

Summary

T-Mobile US, Inc. (TMUS) reported its third-quarter 2019 financial results, showcasing robust service revenue growth and a significant increase in net income and operating cash flow. Total revenues increased by 2% year-over-year to $11.1 billion, driven by a strong 6% rise in service revenues to $8.6 billion, fueled by customer base expansion and the success of new rate plans. While equipment revenues saw a slight decrease of 9% to $2.2 billion due to lower device sales, the company's operational efficiency improved, leading to a 2% increase in operating income to $1.5 billion and a 9% rise in net income to $870 million. Financially, T-Mobile demonstrated improved liquidity, with net cash provided by operating activities nearly doubling to $1.7 billion for the quarter. The company also reported a substantial increase in Free Cash Flow, up 27% to $1.1 billion. The report also highlights the significant progress and ongoing regulatory considerations for the proposed merger with Sprint, expected to close in early 2020. Key financial and operational metrics indicate continued momentum, positioning T-Mobile for potential future growth, particularly in the burgeoning 5G landscape.

Key Highlights

• 1Total revenues increased by 2% to $11.1 billion for the third quarter of 2019.
• 2Service revenues grew by 6% to $8.6 billion, driven by an expanding customer base and successful new rate plans.
• 3Operating income increased by 2% to $1.5 billion, while Net income rose by 9% to $870 million.
• 4Net cash provided by operating activities significantly increased by 91% to $1.7 billion.
• 5Free Cash Flow saw a strong increase of 27% to $1.1 billion.
• 6The proposed merger with Sprint is now expected to close in early 2020, with regulatory approvals progressing.
• 7Total customers grew by 9% year-over-year to 84.2 million, with branded postpaid customers showing strong growth.

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