Best Ever Total Net Additions of 2.4 Million, Best Ever Q4
Postpaid Net Additions of 1.4 Million,
Best Q4 Postpaid Phone Net Additions in 4 Years of 1.0 Million, &
Record Low Q4 Postpaid Phone Churn
BELLEVUE, Wash.--(BUSINESS WIRE)--
T-Mobile US, Inc. (NASDAQ: TMUS):
Preliminary Fourth Quarter 2018 Customer Highlights
:
-
2.4 million total net additions - best quarter ever
-
1.4 million branded postpaid net additions - best Q4 ever
-
1.0 million branded postpaid phone net additions - best Q4 in 4 years
-
Lowest ever Q4 branded postpaid phone churn of 0.99%, down 19 basis
points year-over-year
-
135,000 branded prepaid net additions
-
79.7 million customers in total at year-end 2018
Preliminary Full-Year 2018 Customer Highlights:
-
7.0 million total net additions - accelerated year-over-year
-
4.5 million branded postpaid net additions - best in 3 years
-
3.1 million branded postpaid phone net additions - accelerated
year-over-year
-
460,000 branded prepaid net additions
T-Mobile US, Inc. (NASDAQ: TMUS) provided a preliminary view of key
customer results for the fourth quarter and full-year 2018. The company
posted its best quarter ever in total net customer additions of 2.4
million, delivered its best fourth quarter ever in branded postpaid net
additions of 1.4 million and had record low fourth quarter postpaid
phone churn of 0.99%. For the full year 2018, T-Mobile exceeded its
customer guidance delivering 4.5 million branded postpaid net additions
and showed that the Un-carrier’s momentum accelerated year-over-year.
Since the launch of the Un-carrier movement in 2013, T-Mobile’s
Un-carrier strategy has resulted in an increase in its customer base of
more than 46 million - resulting in a total customer base of 79.7
million at the end of 2018.
“The T-Mobile team delivered our best customer results ever in Q4 2018
and we did it in a competitive climate while working hard to complete
our merger with Sprint,” said John Legere, CEO of T-Mobile. “That's 23
quarters in a row where more than 1 million customers have chosen
T-Mobile - along with a postpaid phone churn result that's below 1%.
These customer results speak volumes about our company, our network and
our brand!"
Preliminary Fourth Quarter and Full-Year 2018 Customer Results
T-Mobile continued to deliver meaningful value to consumers in the
fourth quarter of 2018 and the results again showed up in the company’s
customer additions. Customers who join T-Mobile get access to a host of
Un-carrier benefits that solve everyday pain points such as Unlimited
rate plans, Netflix at no extra charge for qualifying customers on
family plans, free international data roaming and texting in more than
210 countries and destinations, T-Mobile Tuesdays and the best customer
service in the industry with T-Mobile’s Team of Experts - all on the
nation’s fastest 4G LTE network. As a result, T-Mobile added 2.4 million
total net customers in the fourth quarter - its best quarter ever,
bringing its total customer count to 79.7 million at year-end 2018. This
marks the 23rd consecutive quarter that T-Mobile has generated more than
1 million total net customer additions. Total customer additions in 2018
were 7.0 million, an acceleration year-over-year, marking the fifth
consecutive year that T-Mobile added more than 5 million net customers.
T-Mobile also saw continued strength on the postpaid side, reporting
branded postpaid net customer additions of 1.4 million in the fourth
quarter of 2018. This was T-Mobile's best fourth quarter branded
postpaid net customer addition performance to date and represents an
acceleration both quarter-over-quarter and year-over-year. Branded
postpaid phone net customer additions were 1.0 million in the fourth
quarter of 2018 - the company's best quarterly performance in 4 years.
For full-year 2018, the company added 4.5 million branded postpaid net
customers, which accelerated year-over-year and exceeded the top end of
the increased guidance range for branded postpaid net customer additions
of 3.8 to 4.1 million.
Branded prepaid net customer additions were 135,000 in the fourth
quarter of 2018 and 460,000 for full-year 2018. Migrations to branded
postpaid plans reduced branded prepaid net customer additions by
approximately 160,000 in the fourth quarter of 2018 and 585,000 for
full-year 2018.
Wholesale net customer additions were 909,000 in the fourth quarter of
2018 and 2.1 million for full-year 2018.
Not only are customers coming to T-Mobile, but they are also staying
longer. T-Mobile posted its best-ever fourth quarter branded postpaid
phone churn result this quarter showing the power of the company’s value
proposition. Branded postpaid phone churn was 0.99% in the fourth
quarter of 2018, down 19 basis points year-over-year and down 3 basis
points sequentially. This was the company's second-lowest branded
postpaid phone churn result ever.
Branded prepaid churn was 3.99% in the fourth quarter of 2018, down 1
basis point year-over-year and down 13 basis points sequentially.
Preliminary Customer Results
Our customer results for the fourth quarter and full-year 2018 are
preliminary and subject to change pending completion of our year-end
closing review procedures. America’s Un-carrier plans to share more
details and its full financial results for the fourth quarter and
full-year 2018 in early February 2019.
|
|
As of
|
|
% Change
|
(in thousands)
|
|
December 31,
2018
|
|
September 30,
2018
|
|
December 31,
2017
|
|
Qtr/Qtr
|
|
Year/Year
|
Customers, end of period
|
|
|
|
|
|
|
|
|
|
|
Branded postpaid phone customers (1) |
|
37,224
|
|
|
36,204
|
|
|
34,114
|
|
|
3%
|
|
9%
|
Branded postpaid other customers
|
|
5,295
|
|
|
4,957
|
|
|
3,933
|
|
|
7%
|
|
35%
|
Total branded postpaid customers
|
|
42,519
|
|
|
41,161
|
|
|
38,047
|
|
|
3%
|
|
12%
|
Branded prepaid customers (1) |
|
21,137
|
|
|
21,002
|
|
|
20,668
|
|
|
1%
|
|
2%
|
Total branded customers
|
|
63,656
|
|
|
62,163
|
|
|
58,715
|
|
|
2%
|
|
8%
|
Wholesale customers
|
|
15,995
|
|
|
15,086
|
|
|
13,870
|
|
|
6%
|
|
15%
|
Total customers, end of period
|
|
79,651
|
|
|
77,249
|
|
|
72,585
|
|
|
3%
|
|
10%
|
(1)
|
|
As a result of the acquisition of Iowa Wireless Services, LLC
("IWS"), we included an adjustment of 13,000 branded postpaid phone
and 4,000 branded prepaid IWS customers in our reported subscriber
base as of January 1, 2018. Additionally, as a result of the
acquisition of Layer3 TV, Inc. ("Layer3 TV"), we included an
adjustment of 5,000 branded prepaid customers in our reported
subscriber base as of January 22, 2018.
|
|
|
|
|
|
Quarter
|
|
% Change
|
|
|
Year Ended
|
|
% Change
|
|
(in thousands)
|
|
Q4 2018
|
|
Q3 2018
|
|
Q4 2017
|
|
Qtr/Qtr
|
|
|
Year/Year
|
|
|
2018
|
|
2017
|
|
2018 vs 2017
|
|
Net customer additions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded postpaid phone customers (1)(2) |
|
1,020
|
|
|
774
|
|
|
891
|
|
|
32
|
%
|
|
14
|
%
|
|
3,097
|
|
|
2,817
|
|
|
10
|
%
|
Branded postpaid other customers (2) |
|
338
|
|
|
305
|
|
|
181
|
|
|
11
|
%
|
|
87
|
%
|
|
1,362
|
|
|
803
|
|
|
70
|
%
|
Total branded postpaid customers
|
|
1,358
|
|
|
1,079
|
|
|
1,072
|
|
|
26
|
%
|
|
27
|
%
|
|
4,459
|
|
|
3,620
|
|
|
23
|
%
|
Branded prepaid customers (1) |
|
135
|
|
|
35
|
|
|
149
|
|
|
286
|
%
|
|
(9
|
)%
|
|
460
|
|
|
855
|
|
|
(46
|
)%
|
Total branded customers
|
|
1,493
|
|
|
1,114
|
|
|
1,221
|
|
|
34
|
%
|
|
22
|
%
|
|
4,919
|
|
|
4,475
|
|
|
10
|
%
|
Wholesale customers
|
|
909
|
|
|
516
|
|
|
633
|
|
|
76
|
%
|
|
44
|
%
|
|
2,125
|
|
|
1,183
|
|
|
80
|
%
|
Total net customer additions
|
|
2,402
|
|
|
1,630
|
|
|
1,854
|
|
|
47
|
%
|
|
30
|
%
|
|
7,044
|
|
|
5,658
|
|
|
24
|
%
|
(1)
|
|
As a result of the acquisition of IWS and Layer3 TV, customer
activity post acquisition was included in our net customer additions
beginning in the first quarter of 2018.
|
(2)
|
|
During the third quarter of 2017, we retitled our “Branded postpaid
mobile broadband customers” category to “Branded postpaid other
customers” and reclassified 253,000 DIGITS customer net additions
from our “Branded postpaid phone customers” category for the second
quarter of 2017, when the DIGITS product was released.
|
|
|
|
|
|
Quarter
|
|
Qtr/Qtr
|
|
Year/Year
|
|
Q4 2018
|
|
Q3 2018
|
|
Q4 2017
|
|
|
Branded postpaid phone churn
|
|
0.99
|
%
|
|
1.02%
|
|
1.18%
|
|
-3 bps
|
|
-19 bps
|
Branded prepaid churn
|
|
3.99
|
%
|
|
4.12%
|
|
4.00%
|
|
-13 bps
|
|
-1 bps
|
|
|
|
|
|
|
|
|
|
|
|
|
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, press releases, SEC filings and public conference calls and
webcasts. We also intend to use the @TMobileIR Twitter account (https://twitter.com/TMobileIR)
and the @JohnLegere Twitter (https://twitter.com/JohnLegere),
Facebook and Periscope accounts, which Mr. Legere also uses as a means
for personal communications and observations, as means of disclosing
information about the Company and its services and for complying with
its disclosure obligations under Regulation FD. 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.:
As America's Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining
the way consumers and businesses buy wireless services through leading
product and service innovation. Our advanced nationwide 4G LTE network
delivers outstanding wireless experiences to 79.7 million customers who
are unwilling to compromise on quality and value. Based in Bellevue,
Washington, T-Mobile US provides services through its subsidiaries and
operates its flagship brands, T-Mobile and Metro by T-Mobile. For more
information, please visit http://www.t-mobile.com
or join the conversation on Twitter using $TMUS.
Important Additional Information
In connection with the proposed transaction, T-Mobile US, Inc.
(“T-Mobile”) has filed a registration statement on Form S-4 (File No.
333-226435), which was declared effective by the U.S. Securities and
Exchange Commission (the “SEC”) on October 29, 2018, and which contains
a joint consent solicitation statement of T-Mobile and Sprint
Corporation (“Sprint”), that also constitutes a prospectus of T-Mobile
(the “joint consent solicitation statement/prospectus”), and each party
will file other documents regarding the proposed transaction with the
SEC. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE JOINT CONSENT
SOLICITATION STATEMENT/PROSPECTUS AND OTHER RELEVANT DOCUMENTS FILED
WITH THE SEC WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION. The documents filed by T-Mobile may be obtained
free of charge at T-Mobile’s website, at www.t-mobile.com,
or at the SEC’s website, at www.sec.gov,
or from T-Mobile by requesting them by mail at T-Mobile US, Inc.,
Investor Relations, 1 Park Avenue, 14th Floor, New York, NY 10016, or by
telephone at 212-358-3210. The documents filed by Sprint may be obtained
free of charge at Sprint’s website, at www.sprint.com,
or at the SEC’s website, at www.sec.gov,
or from Sprint by requesting them by mail at Sprint Corporation,
Shareholder Relations, 6200 Sprint Parkway, Mailstop KSOPHF0302-3B679,
Overland Park, Kansas 66251, or by telephone at 913-794-1091.
No Offer or Solicitation
This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the requirements
of Section 10 of the U.S. Securities Act of 1933, as amended.
Cautionary Statement Regarding Forward-Looking Statements
This communication contains certain forward-looking statements
concerning T-Mobile, Sprint and the proposed transaction between
T-Mobile and Sprint. All statements other than statements of fact,
including information concerning future results, are forward-looking
statements. These forward-looking statements are generally identified by
the words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“may,” “could” or similar expressions. Such forward-looking statements
include, but are not limited to, statements about the benefits of the
proposed transaction, including anticipated future financial and
operating results, synergies, accretion and growth rates, T-Mobile’s,
Sprint’s and the combined company’s plans, objectives, expectations and
intentions, and the expected timing of completion of the proposed
transaction. There are several factors which could cause actual plans
and results to differ materially from those expressed or implied in
forward-looking statements. Such factors include, but are not limited
to, the failure to obtain, or delays in obtaining, required regulatory
approvals, and the risk that such approvals may result in the imposition
of conditions that could adversely affect the combined company or the
expected benefits of the proposed transaction, or the failure to satisfy
any of the other conditions to the proposed transaction on a timely
basis or at all; the occurrence of events that may give rise to a right
of one or both of the parties to terminate the business combination
agreement; adverse effects on the market price of T-Mobile’s or Sprint’s
common stock and on T-Mobile’s or Sprint’s operating results because of
a failure to complete the proposed transaction in the anticipated
timeframe or at all; inability to obtain the financing contemplated to
be obtained in connection with the proposed transaction on the expected
terms or timing or at all; the ability of T-Mobile, Sprint and the
combined company to make payments on debt or to repay existing or future
indebtedness when due or to comply with the covenants contained therein;
adverse changes in the ratings of T-Mobile’s or Sprint’s debt securities
or adverse conditions in the credit markets; negative effects of the
announcement, pendency or consummation of the transaction on the market
price of T-Mobile’s or Sprint’s common stock and on T-Mobile’s or
Sprint’s operating results, including as a result of changes in key
customer, supplier, employee or other business relationships;
significant transaction costs, including financing costs, and unknown
liabilities; failure to realize the expected benefits and synergies of
the proposed transaction in the expected timeframes or at all; costs or
difficulties related to the integration of Sprint’s network and
operations into T-Mobile; the risk of litigation or regulatory actions;
the inability of T-Mobile, Sprint or the combined company to retain and
hire key personnel; the risk that certain contractual restrictions
contained in the business combination agreement during the pendency of
the proposed transaction could adversely affect T-Mobile’s or Sprint’s
ability to pursue business opportunities or strategic transactions;
effects of changes in the regulatory environment in which T-Mobile and
Sprint operate; changes in global, political, economic, business,
competitive and market conditions; changes in tax and other laws and
regulations; and other risks and uncertainties detailed in the Form S-4,
as well as in T-Mobile’s Annual Report on Form 10-K for the fiscal year
ended December 31, 2017 and in its subsequent reports on Form 10-Q,
including in the sections thereof captioned “Risk Factors” and
“Cautionary Statement Regarding Forward-Looking Statements,” as well as
in its subsequent reports on Form 8-K, all of which are filed with the
SEC and available at www.sec.gov
and www.t-mobile.com.
Forward-looking statements are based on current expectations and
assumptions, which are subject to risks and uncertainties that may cause
actual results to differ materially from those expressed in or implied
by such forward-looking statements. Given these risks and uncertainties,
persons reading this communication are cautioned not to place undue
reliance on such forward-looking statements. T-Mobile assumes no
obligation to update or revise the information contained in this
communication (whether as a result of new information, future events or
otherwise), except as required by applicable law.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190109005242/en/
Press Contact:
Media Relations
T-Mobile US, Inc.
mediarelations@t-mobile.com
http://newsroom.t-mobile.com
Investor Relations Contact:
Nils Paellmann
T-Mobile US,
Inc.
212-358-3210
investor.relations@t-mobile.com
http://investor.t-mobile.com
Source: T-Mobile US, Inc.