T-Mobile US, Inc. (NASDAQ: TMUS) reported first quarter 2021 results today, highlighted by industry-leading total net additions, postpaid net additions, and postpaid phone net additions. The company also reported strong financial results and raised 2021 guidance as its synergy-backed model simultaneously delivers customer growth and profitability.
“T-Mobile puts customers at the center of everything we do by giving them the best network, value and experience all at once – and this quarter’s stellar, industry-leading results prove that they’re noticing,” said Mike Sievert, CEO of T-Mobile. “We just keep pushing further ahead of the competition. Our network leadership is fueling customer momentum, delivering merger synergies and expanding our addressable markets for growth. We have so much confidence that we are raising 2021 guidance just one quarter into the year. Our mission is to be the very best at connecting customers to their world and we’re delivering on it.”
Highlights included;
- Total revenues increased year-over-year to $19.8 billion and total service revenues increased year-over-year to $14.2 billion in Q1 2021, driven by the Sprint Merger and continued customer growth.
- Net income was relatively flat year-over-year at $933 million in Q1 2021, as higher revenues were offset by expense increases as a result of the Sprint Merger, including Merger-related costs. Diluted earnings per share (EPS) decreased year-over-year to $0.74 in Q1 2021, primarily due to a higher number of outstanding shares as a result of the Sprint Merger.
- Adjusted EBITDA increased year-over-year to $6.9 billion and Core Adjusted EBITDA increased to $5.9 billion in Q1 2021, 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 $3.7 billion in Q1 2021. Free Cash Flow increased year-over-year to $1.3 billion in Q1 2021, as an increase in net cash provided by operating activities was partially offset by higher cash purchases of property and equipment.
- Cash purchases of property and equipment including capitalized interest increased year-over-year to $3.2 billion in Q1 2021, primarily due to the continued 5G network build-out and network integration activities related to the Sprint Merger.
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