T-Mobile US, Inc. (NASDAQ: TMUS) announced it delivered a record-setting first quarter in 2020, reporting industry-leading customer growth and record first quarter financials despite this uncertain environment. The company said it delivered great service revenues, Q1 net income and Adjusted EBITDA – all while claiming T-Mobile leads the industry in postpaid phone net customer additions for the 25th consecutive quarter.
“Just five weeks ago, we merged with Sprint to create the New T-Mobile, and we’re more excited today than ever before about the massive value creation opportunity and synergy potential that lies ahead. We are off to the races laying the foundation for the future of the New T-Mobile as we work to execute on our business plan and harness the incredible opportunity ahead,” said T-Mobile President/CEO Mike Sievert. “In the face of a challenging climate for Q1, T-Mobile once again led the industry in postpaid phone net customer additions and set even more financial records, including record service revenues, record Q1 Net income and record Adjusted EBITDA. Additionally, I’m so proud of our teams for their creative and passionate work in the face of the COVID-19 health crisis as we continue to provide crucial connectivity to our customers and impacted communities, while ensuring the safety of our employees.”
Highlights included:
- Rapid start to deploying 5G sites in Philadelphia and New York City using Sprint’s 2.5 GHz mid-band spectrum on T-Mobile’s 5G network
- After launching America’s first nationwide 5G network on 600 MHz spectrum in December 2019, it further expanded 5G footprint across an additional 1,600 sites in Q1 2020 and ramped pace to 1,000 sites in April 2020
- 600 MHz 5G now covers 215 million people including the cities of Detroit, St. Louis and Columbus with the Bay Area added this week and more cities coming online soon
- Over 50 million New T-Mobile devices have access to the 600 MHz LTE network and 5G access is being made available to Sprint customers
- Partnered with multiple spectrum holders and the FCC to temporarily deploy additional 600 MHz spectrum, effectively doubling total 600 MHz LTE capacity across the nation
- Committed to the FCC’s Keep Americans Connected pledge by maintaining service and waiving late fees for residential and small business customers impacted by COVID-19
In mid-March, before the merger with Sprint, T-Mobile closed approximately 80 percent of company-owned retail stores, implemented remote working arrangements for care teams and encouraged employees to work remotely in compliance with the regulations in various states. It has since reopened a number of previously closed stores.
“While the COVID-19 pandemic has adversely impacted, and will continue to adversely impact, T-Mobile’s business and operating results,” the company said in a press release, “the company continues to work to ensure the health and safety of its employees, the ongoing reliability of its network, which continues to perform strongly and function with minimal interruptions, and the ability to serve and connect our customers. These prioritizations have resulted in key operational changes, affecting T-Mobile’s service revenues, equipment revenues, customer additions, churn rate and SG&A expenses, including increased labor costs.”
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