The Un‑carrier’s Differentiated Growth Strategy Drives Industry‑Best Growth of 6.4 Million Postpaid Customers and Establishes T‑Mobile as America’s Fastest Growing Broadband Provider

Industry-Leading and Record High Postpaid and Broadband Customer Growth in 2022

• Postpaid net account additions of 314 thousand in Q4 2022 — 1.4 million in 2022, record high(1)
  Postpaid net customer additions of 1.8 million in Q4 2022 — 6.4 million in 2022, exceeded guidance
  Postpaid phone net customer additions of 927 thousand in Q4 2022 — 3.1 million in 2022, only operator to grow year-over-year(1)
  Postpaid phone churn of 0.92% in Q4 2022 — 0.88% in 2022, record low, only operator to improve
  High Speed Internet net customer additions of 524 thousand in Q4 2022 — 2.0 million in 2022, industry-best

Differentiated Growth Model Unlocks Strong Financial Results and Accelerates Shareholder Returns in 2022

• Service revenues of $15.5 billion in Q4 2022 — $61.3 billion in 2022, record high
  Postpaid service revenues of $11.7 billion in Q4 2022 — $45.9 billion in 2022, industry-leading growth of 8%
  Net income of $1.5 billion in Q4 2022 — $2.6 billion in 2022, which included merger-related costs, decreased 14%
  Core Adjusted EBITDA(2) of $6.6 billion in Q4 2022 — $26.4 billion in 2022, industry-leading growth of 12% and at high end of guidance
  Net cash provided by operating activities of $4.3 billion in Q4 2022 — $16.8 billion in 2022, industry-leading growth of 21%, exceeded guidance
  Free Cash Flow(2) of $2.2 billion in Q4 2022 — $7.7 billion in 2022, industry-leading growth of 36%, exceeded guidance
  Repurchased 21.4 million shares of common stock in 2022 for $3.0 billion
  
  

Independent Third Party Experts Crown T-Mobile the New Overall Network Leader While Extending 5G Lead

• T-Mobile’s overall network performance swept the competition for the first time according to Ookla

Doing Good — The Un-carrier Way — Ranked Top 20 on America’s Most JUST Companies in 2023

• Committed to net-zero target by 2040, first in US wireless industry, and signed The Climate Pledge
  Project 10Million connected more than 5.3 million students, more than halfway toward achieving its goal

Strong 2023 Outlook Driven by Continued Profitable Customer Growth and Merger Synergies

• Core Adjusted EBITDA(2) is expected to grow 10% at mid-point
  Net cash provided by operating activities is expected to grow 8% at mid-point and Free Cash Flow(2) is expected to grow approximately 75% at mid-point
  
  

Bellevue, WA — February 1, 2023 — T-Mobile US, Inc. (NASDAQ: TMUS) reported fourth quarter and full-year 2022 results today, delivering industry-leading postpaid service revenue and cash flow growth in 2022, enabling the Un-carrier to begin shareholder returns earlier than planned. T-Mobile further extended its fame for value while translating its 5G lead into overall network leadership for the first time, resulting in the company’s lowest ever annual postpaid phone churn along with industry-best and record high postpaid account, postpaid customer and broadband customer growth in 2022.

"With record postpaid account and customer net adds that translated into industry-leading postpaid service revenue and cash flow growth, T-Mobile absolutely smashed 2022 by once again focusing on putting customers first,” said Mike Sievert, CEO of T-Mobile. “In true Un-carrier fashion, we have no plans to slow down in 2023. Now that we are being recognized as not only the 5G leader but the clear overall network leader in the U.S., our differentiated and sustainable growth strategy is opening up even bigger pathways for our future!"

Industry-Leading and Record High Postpaid Account, Postpaid Customer and Broadband Growth in 2022(1)

• Postpaid net account additions were 314 thousand in Q4 2022 and reached a record 1.4 million for 2022.
  Postpaid net customer additions were 1.8 million in Q4 2022 and reached a record 6.4 million for 2022, above the high end of the company’s most recently increased annual guidance range of 6.2 to 6.4 million.
  Postpaid phone net customer additions were 927 thousand in Q4 2022 and 3.1 million for 2022. Postpaid phone churn in Q4 2022 of 0.92% improved 18 basis points year-over-year, and 2022 churn of 0.88% improved 10 basis points year-over-year.
  Prepaid net customer additions were 25 thousand in Q4 2022 and 338 thousand for 2022. Prepaid churn was 2.93% in Q4 2022, and 2022 churn of 2.77% was the lowest in company history.
  High Speed Internet net customer additions were 524 thousand in Q4 2022 and 2.0 million for 2022. T-Mobile ended the year with 2.6 million High Speed Internet customers.
  Total net customer additions were 1.8 million in Q4 2022 and reached a record 6.8 million for 2022. The total customer count increased to a record high of 113.6 million.

Strong Financial Results

• Total service revenues increased 4% year-over-year to $15.5 billion in Q4 2022 and 5% year-over-year to $61.3 billion in 2022, which included Postpaid service revenue growth of 7% year-over-year in Q4 2022 and 8% growth year-over-year in 2022.
  Net income increased 250% year-over-year to $1.5 billion in Q4 2022 and decreased 14% year-over-year to $2.6 billion in 2022, which included, net of tax, merger-related costs of $3.7 billion and loss associated with the anticipated sale of the wireline business of $815 million. Diluted EPS increased year-over-year to $1.18 per share in Q4 2022 and decreased year-over-year to $2.06 per share in 2022.
  Core Adjusted EBITDA increased 16% year-over-year to $6.6 billion in Q4 2022 and increased 12% year-over-year to $26.4 billion in 2022, primarily due to Service revenue growth and increased synergy realization.
  Net cash provided by operating activities increased 45% year-over-year to $4.3 billion in Q4 2022 and increased 21% year-over-year to $16.8 billion in 2022, which included cash payments for merger-related costs of $622 million in Q4 2022 and $3.4 billion in 2022.
  Cash purchases of property and equipment, including capitalized interest, increased 16% year-over-year to $3.4 billion in Q4 2022 and increased 13% year-over-year to $14.0 billion in 2022 driven by the accelerated build-out of the nationwide 5G network.
  Free Cash Flow increased 96% year-over-year to $2.2 billion in Q4 2022 and increased 36% year-over-year to $7.7 billion in 2022, which included cash payments for merger-related costs of $622 million in Q4 2022 and $3.4 billion in 2022.
  Common stock repurchases of 16.5 million shares for $2.3 billion in Q4 2022 and 21.4 million shares for $3.0 billion in 2022, with remaining authorization of up to $11.0 billion through the end of September 2023.

Independent Third Party Experts Crown T-Mobile the New Overall Network Leader While Extending 5G Lead

T-Mobile is the leader in 5G with the country’s largest, fastest, most reliable and most awarded 5G network. The company’s 5G network covers 325 million people (98% of Americans), and its super-fast Ultra Capacity 5G covers 265 million people nationwide. Approximately 60% of T-Mobile’s postpaid customers have a 5G phone and approximately two-thirds of all traffic is on 5G.

Furthermore, the Un-carrier’s 5G network leadership is translating into overall network leadership as noted by multiple third parties. For the first time, T-Mobile takes the crown as the overall network leader in America:

• Ookla: In its Q4 Speedtest Global Index Market Analysis of mobile providers, T-Mobile’s overall network performance swept the competition and placed first in all categories while its 5G network repeated major wins:Overall Network Performance: Fastest mobile operator in the US, lowest multi-server latency, most consistent network, best place to stream video
  5G Network Performance: Best 5G network performance and most consistent 5G experience
  Opensignal: T-Mobile secured major wins on overall network, winning seven of eight awards across experience (including video, games, voice and speeds) and consistency.
  umlaut: In its latest 5G Network Performance Audit Report, T-Mobile was once again named as the most reliable 5G network in the country with the best coverage, stability and speeds.

Accelerated Integration Progress Positions T-Mobile to Approach Full Run-Rate Merger Synergies in 2023

T-Mobile achieved a huge milestone by substantially completing the network decommissioning in Q3 2022, less than 2.5 years post-merger closing, and more than a year ahead of the original merger plan. The company expects to substantially complete its integration by the end of 2023.

T-Mobile realized approximately $6.0 billion in Merger synergies in 2022, with $2.5 billion of selling, general and administrative (SG&A) expense reductions and $2.2 billion of cost of services expense reductions, which increased cash flows while funding growth initiatives and network build, and $1.3 billion in avoided network build costs.

The company incurred Merger-related costs of $592 million in Q4 2022 and $5.0 billion in 2022. Net of taxes, Merger-related costs were $444 million, or $0.36 per share, in Q4 2022 and $3.7 billion, or $2.97 per share, in 2022. Cash payments for merger-related costs were $622 million in Q4 2022 and $3.4 billion in 2022.

Doing Good — The Un-carrier Way — Industry Leader in Building a More Connected and Sustainable Future

T-Mobile continues to stay true to its commitment to use its network, scale and resources for good, building a more connected, equitable and sustainable future:

• The Un-carrier recently announced its most ambitious sustainability goal yet — to achieve net-zero emissions across the company’s entire carbon footprint by 2040, making T-Mobile the first U.S. wireless carrier to set a net-zero target that has been validated by the Science Based Targets initiative.
  T-Mobile has also signed The Climate Pledge, joining other leading companies who vow to reach net-zero carbon emissions by 2040
  Since launching Project 10Million in 2020, T-Mobile has focused on bringing critical connectivity to underserved students nationwide. Through the end of 2022, T-Mobile has provided $4.8 billion in services to connect more than 5.3 million students across the US.
  T-Mobile received multiple recognitions in the fourth quarter:
  JUST Capital ranked T-Mobile #20 on its 2023 Rankings of America’s Most JUST Companies, including #1 in the telecommunications industry for environment, in recognition of its ongoing progress and commitment to driving responsible business practices and positive environmental and social impact
  Received 2022 Military Spouse Employment and Mentoring award from Hiring Our Heroes
  Featured in Seramount’s 2022 Inclusion Index for progress on creating inclusive workplaces

Strong 2023 Outlook Driven by Continued Profitable Customer Growth and Merger Synergies

• Postpaid net customer additions are expected to be between 5.0 million and 5.5 million, expected to lead the industry for the 9th consecutive year.
  Core Adjusted EBITDA, which is Adjusted EBITDA less lease revenues, is expected to be between $28.7 billion and $29.2 billion, up 10% year-over-year at the mid-point.
  Merger synergies are expected to be between $7.2 billion and $7.5 billion, including $2.5 billion to $2.7 billion of SG&A expense reductions, $3.1 billion to $3.2 billion of cost of service expense reductions and approximately $1.6 billion in avoided network build costs.
  Merger-related costs are expected to be approximately $1.0 billion before taxes. These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided by operating activities and Free Cash Flow.
  Net cash provided by operating activities, including payments for Merger-related costs, is expected to be between $17.8 billion and $18.3 billion, up 8% year-over-year at the mid-point.
  Cash purchases of property and equipment, including capitalized interest, are expected to be between $9.4 billion and $9.7 billion.
  Free Cash Flow, including payments for Merger-related costs, is expected to be between $13.1 billion and $13.6 billion, up approximately 75% year-over-year at the mid-point. Free Cash Flow guidance does not assume any material net cash inflows from securitization.

Financial Results

For more details on T-Mobile’s Q4 2022 and full-year 2022 financial results, including the Investor Factbook with detailed financial tables, please visit T-Mobile US, Inc.’s Investor Relations website at https://investor.t-mobile.com.

Earnings Call Information

Date/Time

• Wednesday, February 1, 2023, at 8:00 a.m. (ET)
  Access via Phone (audio only)

Please plan on accessing the call 10 minutes prior to the scheduled start time.

• US/Canada: 877-390-2342
  International: +1 309-216-6532

Access via Webcast

The earnings call will be broadcasted live and can be replayed via the Investor Relations website at https://investor.t-mobile.com.

Submit Questions via Twitter

Send a tweet to @TMobileIR or @MikeSievert using $TMUS

Contact Information

• Media Relations: This email address is being protected from spambots. You need JavaScript enabled to view it.
  Investor Relations: This email address is being protected from spambots. You need JavaScript enabled to view it.

T-Mobile Social Media

Investors and others should note that we announce material financial and operational information to our investors using our investor relations website (https://investor.t-mobile.com), newsroom website (https://t-mobile.com/news), press releases, SEC filings and public conference calls and webcasts. We also intend to use certain social media accounts as a means of disclosing information about us and our services and for complying with our disclosure obligations under Regulation FD (the @TMobileIR Twitter account (https://twitter.com/TMobileIR), the @MikeSievert Twitter account (https://twitter.com/MikeSievert), which Mr. Sievert also uses as a means for personal communications and observations, and the @TMobileCFO Twitter Account (https://twitter.com/tmobilecfo), and our CFO’s LinkedIn account (https://www.linkedin.com/in/peter-osvaldik-3887394), both of which Mr. Osvaldik also uses as a means for personal communication and observations). The information we post through these social media channels may be deemed material. Accordingly, investors should monitor these social media channels in addition to following our press releases, SEC filings and public conference calls and webcasts. The social media channels that we intend to use as a means of disclosing the information described above may be updated from time to time as listed on our investor relations website.

About T-Mobile US, Inc.

T-Mobile US, Inc. (NASDAQ: TMUS) is America’s supercharged Un-carrier, delivering an advanced 4G LTE and transformative nationwide 5G network that will offer reliable connectivity for all. T-Mobile’s customers benefit from its unmatched combination of value and quality, unwavering obsession with offering them the best possible service experience and undisputable drive for disruption that creates competition and innovation in wireless and beyond. Based in Bellevue, Wash., T-Mobile provides services through its subsidiaries and operates its flagship brands, T-Mobile and Metro by T-Mobile. For more information please visit: https://www.t-mobile.com.

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