NASDAQ$TMUS

T-Mobile Us Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

T-Mobile delivered industry-leading growth in customers and profitability.

T-Mobile reported strong Q1 2023 results, demonstrating industry-leading growth in both customers and profitability. The company raised its 2023 guidance, driven by its differentiated strategy and focus on customer value.

  • Postpaid net customer additions of 1.3 million, exceeding AT&T and Verizon combined.
  • Postpaid phone churn of 0.89%, improved year-over-year.
  • Service revenues grew 3% year-over-year to $15.5 billion.
  • Net income increased 172% year-over-year to $1.9 billion, with diluted EPS of $1.58.

Headline financials

Total Revenue

$19.6B

Previous: $20.1B-2.4%
EPS (adj)

$1.58

Previous: $0.57+177.2%
Postpaid Net Customer Adds

1.3M

Previous: 1.3M-1.4%
Prepaid Net Customer Adds

26.0K

Previous: 62.0K-58.1%
Postpaid Phone Churn

0.9%

Previous: 0.9%-4.3%
Prepaid Churn

2.8%

Previous: 2.7%+3.4%
Capital Expenditures

-$3B

Previous: -$3.38B+11.2%
Free Cash Flow

-$1.06B

Previous: -$2.67B+60.2%
Net Income

$1.94B

Previous: $713M+172.1%
Operating Income

$3.4B

Previous: $1.81B+88.1%
Gross Profit

-$222M

Previous: -$210M-5.7%
Cash & Equivalents

$4.54B

Previous: $3.25B+39.9%
Total Assets

$210B

Previous: $211B-0.2%
Stock-Based Comp

$177M

Previous: $141M+25.5%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$19.6B

Q1 2023-2.4%vs Q1 2022
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

T-Mobile · $11.9B total across 1 segment · Q1 2023

  • Postpaid Service Revenue
    $11.9B-21.4%

Forward guidance

T-Mobile raised its 2023 guidance for postpaid net customer additions and Core Adjusted EBITDA.

Tailwinds

  • Postpaid net customer additions are expected to be between 5.3 million and 5.7 million, an increase from prior guidance of 5.0 million to 5.5 million.
  • Core Adjusted EBITDA is expected to be between $28.8 billion and $29.2 billion, an increase from prior guidance of $28.7 billion to $29.2 billion.
  • Merger synergies are expected to be between $7.3 billion and $7.5 billion, an increase from prior guidance of $7.2 billion to $7.5 billion.
  • Net cash provided by operating activities is expected to be between $17.9 billion and $18.3 billion, an increase from prior guidance of $17.8 billion to $18.3 billion.
  • Adjusted Free Cash Flow is expected to be between $13.2 billion and $13.6 billion, an increase from prior guidance of $13.1 billion to $13.6 billion.

Headwinds

  • Merger-related costs are expected to be approximately $1.0 billion before taxes.
  • Capital expenditures are expected to be between $9.4 billion and $9.7 billion.
  • Guidance ranges assume lease revenues of approximately $300 million for 2023.
  • Adjusted Free Cash Flow guidance does not assume any material net cash inflows from securitization in 2023.
  • 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, including, but not limited to, Income tax expense and Interest expense.

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 2023

Historical avgQ1 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro