NASDAQ$TMUS

T-Mobile Us Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

T-Mobile delivered industry-leading growth in postpaid accounts and customers, fueled by 5G network leadership. The company celebrated its two-year merger anniversary with the highest postpaid service revenue and cash flow growth in the industry and raised guidance across the board.

T-Mobile reported strong Q1 2022 results, demonstrating industry-leading growth in postpaid and broadband customers, driven by its 5G network. The company raised its full-year 2022 guidance across the board, reflecting its strong financial performance and accelerated integration progress.

  • Postpaid net account additions of 348 thousand, best in industry and record Q1.
  • Postpaid net customer additions of 1.3 million, best in industry and highest Q1 in eight years.
  • High Speed Internet net customer additions of 338 thousand, best in industry and record high.
  • Free Cash Flow of $1.6 billion grew 26% year-over-year, best growth in industry and raising guidance.

Headline financials

Total Revenue

$20.1B

Previous: $19.8B+1.8%
EPS (adj)

$0.57

Previous: $0.74-23.0%
Postpaid Net Customer Adds

1.3M

Previous: 1.2M+8.9%
Prepaid Net Customer Adds

62.0K

Previous: 151.0K-58.9%
Postpaid Phone Churn

0.9%

Previous: 1.0%-5.1%
Prepaid Churn

2.7%

No prior period
Capital Expenditures

-$3.38B

Previous: -$3.18B-6.2%
Free Cash Flow

-$2.67B

Previous: -$2.25B-18.6%
Net Income

$713M

Previous: $933M-23.6%
Operating Income

$1.81B

Previous: $2.14B-15.6%
Gross Profit

-$210M

Previous: -$82M-156.1%
Cash & Equivalents

$3.25B

Previous: $6.68B-51.4%
Total Assets

$211B

Previous: $203B+3.6%
Stock-Based Comp

$141M

Previous: $138M+2.2%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$20.1B

Q1 2022+1.8%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

T-Mobile · $15.1B total across 1 segment · Q1 2022

  • Postpaid Service Revenue
    $15.1B+46.6%

Forward guidance

T-Mobile raised its 2022 guidance across the board, including postpaid net customer additions, Core Adjusted EBITDA, and Free Cash Flow.

Tailwinds

  • Postpaid net customer additions are expected to be between 5.3 million and 5.8 million, an increase from prior guidance of 5.0 to 5.5 million.
  • Core Adjusted EBITDA is expected to be between $25.8 billion and $26.2 billion, an increase from prior guidance of $25.6 to $26.1 billion.
  • Net cash provided by operating activities is expected to be between $15.7 billion and $16.1 billion, an increase from prior guidance of $15.5 to $16.1 billion.
  • Cash purchases of property and equipment are expected to be between $13.2 billion to $13.5 billion, an increase from the prior guidance of $13.0 to $13.5 billion.
  • Free Cash Flow is expected to be between $7.2 billion and $7.6 billion, an increase from prior guidance of $7.1 to $7.6 billion.

Headwinds

  • Merger-related costs are expected to be between $4.5 billion and $5.0 billion before taxes.
  • These costs are excluded from Core Adjusted EBITDA but will impact Net income, Net cash provided from operating activities and Free Cash Flow.
  • T-Mobile is not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income.
  • Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
  • Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2022.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.8%

Avg return

Earnings day

+2.8%

Avg return

5 days after

+3.0%

Avg return

30 days after

62%

42 / 68 earnings

Positive

+43.9%

Q2 2012

Best reaction

-11.2%

Q1 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.3%+4.1%+0.3%
Q4 2025+5.1%+10.1%+9.0%
Q3 2025-4.0%-3.3%-7.9%
Q2 2025+1.7%+3.5%-3.4%
Q1 2025-11.2%-5.8%-7.4%
Q3 2024+6.6%+4.0%+8.8%
Q2 2024+6.7%+6.6%+13.3%
Q1 2024-0.1%-0.0%+1.1%
Q4 2023+0.1%-0.2%+1.4%
Q3 2023+1.3%+0.4%+5.6%
Q2 2023-0.2%-2.7%-5.5%
Q1 2023-3.0%-5.3%-8.9%
Q4 2022-1.6%-4.9%-5.0%
Q3 2022+7.2%+8.1%+7.2%
Q2 2022+5.8%+7.4%+6.8%
Q1 2022+5.9%+1.2%+7.3%
Q4 2021+10.3%+11.4%+12.5%
Q3 2021+5.2%+5.9%-4.7%
Q2 2021-0.8%-0.4%-4.6%
Q1 2021+2.0%+5.8%+8.3%
Q4 2020-3.2%-3.8%-3.6%
Q3 2020+6.5%+4.9%+13.6%
Q2 2020+6.7%+5.3%+5.9%
Q1 2020+7.1%+8.7%+13.7%
Q4 2019+4.5%+15.5%+7.4%
Q3 2019+0.2%+1.0%-3.2%
Q2 2019+4.5%+0.9%-5.1%
Q1 2019-0.6%-0.5%+5.4%
Q4 2018+2.2%+4.0%+5.5%
Q3 2018+5.6%+5.5%+5.8%
Q2 2018+3.6%+10.5%+10.1%
Q1 2018-5.9%-5.4%-7.9%
Q4 2017-4.6%-7.0%+5.1%
Q3 2017+3.0%+4.1%+1.5%
Q2 2017-0.4%+1.9%+2.6%
Q1 2017+4.1%+4.0%+4.9%
Q4 2016+0.7%+5.0%+2.4%
Q3 2016+6.1%+5.6%+16.2%
Q2 2016+2.8%+4.6%+2.2%
Q1 2016-3.6%
Q4 2015+0.5%
Q3 2015-5.0%
Q2 2015+9.8%
Q1 2015+1.6%
Q4 2014+3.1%
Q3 2014+2.6%
Q2 2014+8.0%
Q1 2014+9.3%
Q4 2013-6.1%
Q3 2013-1.1%
Q2 2013+5.1%
Q1 2013+1.4%
Q4 2012+3.5%
Q3 2012-3.6%
Q2 2012+43.9%
Q1 2012+1.0%
Q4 2011-1.4%
Q3 2011+0.8%
Q2 2011-9.3%
Q4 2010-9.3%
Q1 2010-0.8%
Q1 2011+1.0%
Q4 2008-1.4%
Q3 2010+7.4%
Q3 2009+7.4%
Q4 2009-7.1%
Q2 2010-7.1%
Q2 2009-7.1%

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