T-Mobile US, Inc. (NASDAQ: TMUS) reported fourth quarter and full-year 2020 results late yesterday, highlighted by what they claim are industry-leading total net additions, postpaid net additions and postpaid phone net additions for both the fourth quarter and full-year 2020. The company also reported financial results that they claim met or exceeded all guidance and will deliver customer growth and profitability.
“These results show that we’re pulling way ahead of the pack on what matters – overall 5G network performance – and executing to stay ahead,” said Mike Sievert, CEO of T-Mobile. “And customers are noticing. 2020 was quite simply our best year yet, with our highest ever total postpaid net additions of 5.5 million.”
Total revenues increased year-over-year to $20.3 billion in Q4 2020 and $68.4 billion in full-year 2020, and total service revenues increased year-over-year to $14.2 billion in Q4 2020 and $50.4 billion in full-year 2020, driven by the Sprint merger and continued customer growth.
Net income was essentially flat year-over-year at $750 million in Q4 2020 and decreased year-over-year to $3.1 billion in full-year 2020, as expense increases as a result of the Sprint merger, including merger-related costs, were partially offset by higher revenues. Merger-related costs were $686 million before taxes in Q4 2020 and $1.9 billion before taxes in full-year 2020. Diluted earnings per share (EPS) decreased year-over-year to $0.60 in Q4 2020 and $2.65 in full-year 2020 due to lower net income and a higher number of outstanding shares as a result of the Sprint merger.
Adjusted EBITDA increased year-over-year to $6.7 billion in Q4 2020 and $24.6 billion in full-year 2020, primarily due to the Sprint merger, including the related synergy capture, and continued customer growth.
Net cash provided by operating activities increased year-over-year to $3.5 billion in Q4 2020 and $8.6 billion in full-year 2020. Free Cash Flow, excluding gross payments for the settlement of interest rate swaps, decreased year-over-year to $476 million in Q4 2020 and $3.0 billion in full-year 2020, as higher cash purchases of property and equipment were partially offset by increased net cash provided by operating activities.
Cash purchases of property and equipment including capitalized interest increased year-over-year to $3.8 billion in Q4 2020 and $11.0 billion in full-year 2020, primarily due to the continued 5G network build-out and network integration activities related to the Sprint merger.
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