NASDAQ$TMUS

T-Mobile Us Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

T-Mobile reported industry-leading postpaid service revenue and cash flow growth.

T-Mobile reported strong Q2 2022 results, leading the industry in postpaid and broadband customer growth. The company raised guidance across the board due to its synergy-backed model and differentiated growth strategy, which continue to deliver the highest growth in postpaid service revenue and cash flows in the industry.

  • Postpaid net account additions of 380 thousand, best in industry and highest in company history
  • Postpaid net customer additions of 1.7 million, more than AT&T and Verizon combined and highest Q2 ever
  • High Speed Internet net customer additions of 560 thousand, best in industry for third consecutive quarter
  • Service revenues of $15.3 billion grew 6% year-over-year, including industry-leading Postpaid service revenue growth of 9%

Headline financials

Total Revenue

$19.7B

Previous: $20B-1.2%
EPS (adj)

$0.43

Previous: $0.78-44.9%
Postpaid Net Customer Adds

1.7M

Previous: 1.3M+30.8%
Prepaid Net Customer Adds

146.0K

Previous: 76.0K+92.1%
Postpaid Phone Churn

0.8%

Previous: 0.9%-8.0%
Prepaid Churn

2.6%

Previous: 2.6%-1.5%
Capital Expenditures

-$3.57B

Previous: -$3.27B-9.2%
Free Cash Flow

-$3.68B

Previous: -$2.29B-60.6%
Net Income

-$108M

Previous: $978M-111.0%
Operating Income

$709M

Previous: $2.11B-66.3%
Gross Profit

-$521M

Previous: -$154M-238.3%
Cash & Equivalents

$3.15B

Previous: $7.79B-59.6%
Total Assets

$209B

Previous: $204B+2.6%
Stock-Based Comp

$154M

Previous: $134M+14.9%

Revenue & EPS history

T-Mobile · Revenue · Quarterly

$19.7B

Q2 2022-1.2%vs Q2 2021
Beat estimate in 5 of 15 quarters(33%)
ActualEstimate

Revenue by segment

T-Mobile · $11.4B total across 1 segment · Q2 2022

  • Postpaid Service Revenue
    $11.4B+9.1%

Forward guidance

T-Mobile raises guidance across the board

Tailwinds

  • Postpaid net customer additions are expected to be between 6.0 million and 6.3 million
  • Core Adjusted EBITDA is expected to be between $26.0 billion and $26.3 billion
  • Merger synergies guidance range to $5.4 to $5.6 billion in 2022
  • Net cash provided by operating activities is expected to be between $16.0 billion and $16.3 billion
  • Free Cash Flow is expected to be between $7.3 billion and $7.6 billion

Headwinds

  • Merger-related costs are expected to be between $4.7 billion and $5.0 billion before taxes.
  • Capital expenditures are expected to be between $13.5 billion to $13.7 billion
  • 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.
  • 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 Q2 2022

Historical avgQ2 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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