T-Mobile US (TMUS) 1 Feb 232022 Q4 Earnings call transcript

Good morning [Operator Instructions].

I would now like to turn the conference over to Mr. Jud Henry, Senior Vice President and Head of Investor Relations for T-Mobile US. Please go ahead, sir.

All right. Quarter Year Fourth Earnings T-Mobile's to and XXXX Full Call. Welcome

other are on our our as senior the me Mike team. CFO; of leadership call well Osvaldik, Joining Peter today Sievert, the CEO; President as members and

review. our statements, encourage a this and involve risk comprehensive results differ list uncertainties During forward-looking you our in actual risks materially cause of which from make SEC may statements. we I will to call, to filings, forward-looking which that We factors provide

release, book as to between discussed fact earnings Results our the Relations results be GAAP results section related Our other documents Quarterly Investor can website. investor and non-GAAP in call as reconciliations on the of found well this and

With that, me Mike. the let turn call over to

everybody. Hi, Okay. Thanks, Jud.

we're New exciting even about talking I to the can I think in to And team. is you ahead City an senior and very York much more forward As am going what future. a look whole see, looking with XXXX to here be

record before ever. ever We to growth, a XXXX was customers customer year our and translated than more un-carrier QX. this finishing year was It a financial we the strong growth to our welcomed best history, in industry-leading company. our with for

rewrote this the our and or rate year. competitive the good, at run we delivered a also team T-Mobile dynamic beginning Our the for high guidance end on for competition laid board. biggest year the above accelerating highly in investments, By business these of investment across network the was XXXX foundation capital-efficient our history.

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network the are results the with done in, we've awards latest and While it.

big growth network than the customers profitable Along delivering future. faster strategy. ever. our pathways flows completed not while ambitious the both opens shutdown also and launched And leader, And for successfully differentiated most but and through we way, growth initiatives industry-leading leader. ESG the this XG in growth T-Mobile planned, cash migration network now and we our only overall is our customer the

outcomes our begin to differentiated financial us repurchases Our to we're And deployments very than accelerate confident and looking allowed planned. strategy. share network XXXX, our in earlier ahead

this XXXX. talk In today, on fact, to at year we merger we're more of to meet start with way exceed our with shared I'm all for excited the about of or integration. early our in track Day all you let's back this aspirations that Analyst and

the one we exactly at in a Sprint and would customers when history off network Sprint closed time, the sites, to history we churn were the lowest have X.XX, for full could the within the network improvement year the churn faster did. at phone the of had year-over-year only moved industry best just and what not only thought in in the year postpaid shut people our than And we all few that, team our X.X years. planned Back completed Company's our down deliver and merger, we the XXXX. deliver DCOM that that's We Sprint same all

That overall now statement. United network, been that say we leader States. into XG Diving years, the clear is has network can while big in T-Mobile a has best for T-Mobile the the

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our effective When vu. I is. worried everyone when like Kind normalize. growth about really and how our In to and fact, began of time feels in differentiated strategy demonstrated what growth was would think results this year, 'XX deja back to industry last happen

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before. We it explained

have the it's places relative in And we Business, we're to of one for durable by where competition on is where just hand. taking an winning because ever driven in our differentiated clearly quarters highest phone we're delivered adds strategy massively QX. Including Our the now where and incumbents. T-Mobile impact underpenetrated we having net share and the

in XXXX. highest-ever Verizon's As you can see churn in business

for In prime best lower capacity and a combination the this increasingly the for their needs we're only who We're new into to offers at T-Mobile consumer, of beginning network recognize opportunity. network seekers that XXX and coverage cost. tap winning with markets top

of better these share places, switchers in in only win didn't areas, high new rural in better play and We're markets many the started. capturing we which proposition lot of just smaller geographies, we're a where we're to getting a in a before. because network XXs, And bringing value a really in says

our In million Internet year first high-speed launch. added addition, we in X our customers commercial full since

adds net Comcast broadband 'XX a that is in a more for And Verizon, not had Charter up AT&T, deliver T-Mobile our growth our focus good phenomenon being new into on industry year-over-year industry-leading to fact, but with growth, and business. This addition combined. only In customer powerful best in brand profitable did we EBITDA flow performance translated XX% up adjusted free core cash XX%. financial and

an moment in attempt including The cyber cybersecurity made weeks a a XXXX, way in I We incident. it a capabilities After we've the address the within and a criminal ago. down investments And most hours. in shut this critical more very seriously. data data our recent of importantly, our through API, take kinds XX from identifying access systems issue up accessed. showed take sensitive to we customer address to being want few to policies protected our

any actor will that the in will some achieve our to obtain customer allow us plan our the able cybersecurity support aggressive be information, disappointed goal confident world's of the are Find area. this crime of that second-to-none experts to of we working with becoming

am our initiative to ways up, bring sustainable achieving we're than some ago, wrap nationwide launched subsidized more years of with the Nearly students underserved connected we're future. service. I to goal. more a to proud digital I now connectivity building we called highly want halfway three say free divide touch our and to to And on XXMillion I or Project Before

$X.X To connected not services working date, X.X slowing four to across more and committing we've net-zero sustainability provided entire students, down. most million recently also billion create the emissions only and than yet our in ambitious our future, do T-Mobile a more We're we're achieve hard by footprint to goal to to so. XXX makes Fortune companies XXXX. This one of carbon sustainable

number top of measures named including companies matter JUST Capital's is being including Our in one industry. environmental our metrics to the impact, this our work against XX which XXXX in in we space where communities, that recognized, being rankings, ranked

Okay.

some on wrap me and ahead. XXXX with what's Let comments up

With clearly lots to these differentiated results, of has that run. record shown room we've our strategy

the will environment. growth believe as whole challenging strongly I even potentially as moderating a macroeconomic prove that to industry be a and is case seeing And this

especially be it the year high-quality which is We we may that times. payoff. true see our to in begin fact, as remarkably proving case a to be the in believe also In will well suited positioning unique XXXX

is of cash terms years of employees, are all of And and on beyond. durable differentiated and be team result attainment profitable am the expansion could behind in which the in synergy ongoing and integration, of that's flow growth, for so U.S. most now. more merger and history, our ahead us I work and which In all EBITDA build of excited in of proud massive not XXXX mostly network ambitious I us. this front an

and about our over Peter, for to Okay, talk XXXX. key our highlights guidance to financial you

Awesome. Thanks, Mike.

deliver This results postpaid while strong XXXX our the our postpaid both growth industry-leading leveraging highlighted traditional of in industry-leading translated leadership into see, network growth you As in customers. broadband accelerating XXXX. can X% revenue in to service execution moderation our and

core delivered adjusted reaching merger our roughly in our end synergies in raised recently guidance. synergies XX% $X at billion, high billion record a realized of XXXX in plan up We of EBITDA We the of expected XXXX. original and $XX.X the rate high and or total approximately run

margin funding XXXX. expansion year $X.X an to at free our also and after grew CapEx strong XX% which peak that's growth, industry-best Our even rapid unlocked year-over-year flow billion cash in

XX.X of million this shares our start significant share original shareholder allowed for to shares in $X.X repurchase us QX, million performance the billion is an This deliver This repurchased for billion value. XXXX such buybacks time bringing strong financial $X to cumulative our We $XX.X to to total opportunity XXXX. in line. exciting ahead commence

about of for talk XXXX. investments how and year another let's 'XX our us So in strong set execution great up growth in

We focus This differentiated X.X additions down reflecting of versus assumes between additions postpaid half total from strategy execute coming our be postpaid even growth to net million, while continued X growth be expect fans. XXXX. profitable million expecting net and to adds on industry as we roughly net guidance total

EBITDA growth for our Day midpoint remaining and adjusted This excludes of That in off service transition billion profitable guidance is leasing and as core between approximately based XX% substantially by synergies continued device revenues to up million on revenues or growth year-end. we $XX.X billion, customers XXXX. leasing and to expected that $XX.X all leads be above Analyst $XXX merger

our in ramp synergy now expect of of Day higher We synergies year further Analyst is billion to synergies, billion consistent only the between from expected the approaching Analyst avoided approximately approximately $X synergies schedule. which with run execution great $X amount are run a in full ahead not XXXX, a to accelerated rate teams. Day. rate also And cost, target delivered XXXX, is $X.X of which but at to our billion merger $X.X billion by expected Our thanks to

a to EBITDA, be year integration not we $X to taxes, of included behind major expected P&L in related Analyst work adjusted $X the QX. are the QX. and perspective. payments loaded related costs billion core between margin XX% now before Day, us, billion approximately expected recognition P&L are And is almost front-end to with With we be to in invert be just is which have from date material at be half costs, with have as $X.X in This underwent to adjusted XXXX the and last of billion and that roughly merger-related expected cash or to expected heading to expect merger costs for highlighted total

in including these to payments by expected costs, range billion for to provided of cash $XX.X be operating billion. activities, merger-related $XX.X Net the

industry capital year. efficiency would the half $X.X to bit more deliver CapEx and network as expect the unmatched a be back XG this on We billion the of leadership. first of and between to I cash $X.X expect our our be towards we in integration weighted billion

as flow also material is approximately and a large securitization. percentage including further last to and cash and thanks billion margin $XX.X we billion. over up cash And year, in does XX% capital the capital continue data-informed results Together, not points to network. expected revenue service payments Our higher free of This guides represents assume peers. efficiency for this costs and tension than this multiple net our expand any from enhance $XX.X to customer-driven cash range flow, in merger-related us coverage efficiency free our be to approach inflows

to of now flow our continuously win cash cap relationships. even to our further expect full between be our we postpaid account then XX% as expansion we continue profitable to Turning of expect extend and and deepen scale we greater another XXXX as in expect year network our Altogether, X% to we XXXX to up relationships, tax ARPA we be full differentiated opportunities. year and strategy leadership and year and winning taxes, approximately our continue growth XX%. be growth to and effective we And rate free as execute finally, expanding

I the to call And the Jud? Jud turn begin back with Q&A. to that, will now

All right.

Instructions] questions. get Let's your Operator? [Operator to

Craig SVB Moffett. question comes Moffett first from Our with

You may proceed your with question.

number next you wireline from I the the if repurchase of first, think One What WA you've there we're on announcements Is wonder offers. that that second, does talk you have always some understand share could questions, that And the segment. role of nationally? you then wireline Two of market. pacing the now debt expected think the get about dabbling about could. years? just we looks into just if if question into ambitions. do paydown bridge talk need wonder well plays you of had of wireline over for I the a that repurchases. your about is, I now making you financial if how And side? so, the could in the something that a I pace that in And to Peter. that that there's couple bundled you like sort maybe

start, I'll Craig. Well,

we Let competing net with me space. start your little premise by telling to in And XXXX question, space very of of are rest broadband the this industry than convergence the about additions ambitiously the new bit obviously, combined. we in how more the you view a

very for it to years room and our has of position, So we're lots to run come. happy with

has this it's not offensive the that bundles. certain And hand, But from But require. that weather other will on defensive far something accept they view reasons larger our is will the customers we're the or are whether question or is market reasons. that doing bundles for shown

is protect. flank that some we're so have exposed And we to

our because in capability, we value convergence space and the offer. great XG. interested in lot you're broadband a as we a team, great We're home in have ability to a have success to a distribution seeing great And great to the brand, present through add

in very space. we're interested the So

wireline we we there's that need we business. be good augmenting if we strategy I'll haven't have with that to a But not approach. that like we or tell feel whether would did, that because protect. it you, exposed flank it's a decided into translate would But Not because some

made few to understand. tell decision things I And not a I about we've so while we important haven't people And it, to you that think can do. for a that's decided

strategy And a shareholder from go will major or change I in kind the to the our financial no personally We're outcomes or have interest pursuing successfully. world our mission the some mission that remuneration flows far, on very strategy outcomes. as financial in ambitiously having of that and company at to that from we're best wireless. that a become the so

any place change that the in be. delivering not a future is we of business I'm something that we're in would and you of And we the want plan. from that flow flow buybacks that promised to lies interested and outcomes material the all and that. interested where That that cause shareholder share that, in And remuneration from the financial where

change think do involved by most just Secondly, it with said, a partners. that make it at through an a would and in do to material be it it got -- with of ownership again, of because smart level some It who partners we partnership would or looked would And if of at have of means we've be if that, be balance some would not purely we are. sheet a ourselves. we likely would that off it versus I have kind, we and stake type would terms

business, necessarily we to and it for how merits I doing sort And better some it's and voting then not be it. of of merits the the make could because the we'd directly money something as wireless. If value of make for with for customers would in add consumers the attribute feet. it, that's And that said, interested market are their

you delivers customers' value. a best balance seen haven't that a And to to are consumer we brand assets beyond ways plenty far, discounts really a so value a superior and outstanding deliver just tradition sheet translates network wireless, of when that And superior overall in of benefit and discount. wireless convergence the there the have into

helps one that hopefully, that So clear up.

the then changed, And thing hasn't buybacks, initiate ability those think Craig, with on Company of the I than, Yes. to the strategy that other the performance of financial earlier. is important course, the share

excited been approved, we QX $X $XX through in so, billion to And XXXX. and get couldn't saw have first more we delivered of that that you billion

We continue to sight line up of have $XX billion. the to to

generation the the about of flow business, And We're nothing's strategy. with changed the to the and cash that excited regards flexibility so, provides. that, very

reasons. of about you've throughout I'm natural about talk course, growth years, If financial to of you course, going week-to-week you EBITDA the think of got for But or flexibility. shaping, coming gives day-to-day which shaping not core the

As just leverage with shareholder nothing very set the cash in the prudent flow about you again, the target excited respect know, and that we're affords. changed But remuneration the very has overall. strategy, to we've free generation

from Cusick Our next question with comes JPMorgan. Philip

with may question. You proceed your

I Or to to heavy a are wonder think discounting of do done some of -- mix? think a this you bit sort customers up where does tend we lower some contracts SMB Are you come it more What on X% And year-over-year? we contracts. ARPU could that as versus about little what's year, you've that, free to type ARPU? about bit. should heard drift goes into signing? POP our as big that little We've like business win start flat? these enterprise the to growth if dig we And in of

on to we're and seeing ARPU. We'll start and Callie on with over what ARPA switch then Peter

Okay. Mike. Thanks

leadership network net one grow our add winning we for continue very our service highest with performance. service combined Mike which We revenue. QX, T-Mobile In delivered of postpaid so momentum, continued strong ever to XG build our earlier, driven model. we Business, in customer by to mentioned So is as toward

postpaid recorded the We our churn merger with ARPU. we Sprint, our voice lowest phone and since grew

and strong the see grew as last impact, was And its declined you adds in three can net for we adds to business fact, net Verizon's having In quarter highest in 'XX 'XX. sequentially levels an trend, in their which ever every it's business quarters.

also achieved We've quarters consecutive growth. five Internet of business

Some customers of solution our of in multiline deploying major We industry, on wins In found in adopting strategic service growing a healthcare of the who's with where won verticals, base in company airlines nine QX alone. three we these key to the welcome we've to XX% QX financial out XX,XXX large we new Ensign for our by using airline a our industry, solutions. total are as employees. banking, mobility fast logos institutions of a here In won XX their accounts. in XX

where welcome on Chicago County, operations In where Advanced And and innovative our Formula powering the signed on to we ensuring working the top Solutions we're and Vegas, we we're performance be last PD, Resorts, even operations. providing welcomed to also public category, largest And together Dallas helping the in we IST. mountain our operator meet sector, their Head sustainability Bell restore resort Network provide X, guest experiences, goals fees. enhance

we matters customers we're superior network more drove even we are race a deploy not considered our head to workplace a as have model. And first. an we not productivity the bit therefore, we digital start the differentiated in pricing coverage, IT always that lowest and treat matters focused down. network unparalleled it's two-year in that on customers it's service bottom, CIS, And rate laying, transformation, a We why where And It know we're modern of the of leadership. sales. a it

going to Peter. I'm it to you, over

Yes.

add that. Let to me just

the the XG in in our we XXXX are quality, rose rose XXXX question, CIOs you solutions, and we're And space. than your interested what us competitors and the business rising. they're on. can is are I of and because because They and premise they in are large, Callie on we the what think competing picking ARPUs they're but best best network have bring by lower consumer, in heard in that behind say

very And of much premise I to the so, think, your that's question.

there. been, keep longevity. we and than forward, ARPUs cost to things business that They The structural always one no and there's happening change have though mind that As are very in in are to is sell the go consumer area good. even of lower is lower

profitability So, why it's careful there's different plenty not. of reasons ARPU. business for of about guiding got That's to be you are for like the metric a ARPU as the because to that business that

not just T-Mobile approach. be Mike. And in our ARPU basis. anticipating question, a that's Absolutely, the generally Business, or the we year-over-year now had success to on mix-driven example, Yes. for continued responders metric And down would a be guide being your metric mix-driven we're right probably for primarily stable. segmentation definitely And as

a this amount just been of there's tailwind. But

Magenta We in continue to see MAX take strength in rates QX.

upside could that get in we'll potentially So generally you But even there's later that see opportunity as year, stable some say the increases over right see how that. we with further the develops. into I'd year, now, and potential

Our next with comes UBS. Hodulik from John question

You your may with question. proceed

Great. Two ones, quick if I could.

business for talked following guess, 'XX? on beyond where out the other how in be in about you you've sort deployment and and up store In sort you're to on us Could market of on $X.X you're is And market? of strategy? would distribution doing the could network in CapEx that have I give C-band deployments First, the spectrum details deployment And sort and from of look as penetrating thinking spectrum great. and the market of the then past, what X.X sort Neville, of this question. rural the sustainable a Maybe some standpoint are you maybe for billion, for guide, for terms about at us a on XXXX the level? you well you give we where sense spectrum update

Thanks, John. are great Those two ones.

due have am I was what's here. before out I the pleased better. year of before, license areas, play pivotal markets First, something we of internally XXXX And it to to couple And competing think hadn't the We happening done in all to or numbers what of XX% I'll a that ago. in we scale we've to do we're with really set you call hand at We those Jon. at rural on marketplaces scale. years to smart really XX% places, so a the -- explained where been and at moved to placed. in from

So, if in going numbers then some on back up, little what's going network. it give color on and maybe how you the maybe, switch and and Jon, about can of bit a we'll and that's even talk

one in Mike this million the in said, hitting from Like XX% we'll we size terms XXX of year people to across is so XX entire is it where XXX ago about U.S. households. country. which Yes. the XX% keep top It's reminded overall areas, market. it's This how markets. of It's the But XX% define fun. million everything this small markets business, rural in the of been outside just

selling times heritage in usable such I or ago markets. to whether it out it's cell bringing into home phone dual into market years rural service, actually My be markets, started are a in service your is XX service mobile bring and Internet in the

up tell to issue So our got switching a I a And is basis. far. points basis so very, very fun you, XXX year-over-year it's on

at competing, all peaking over you in. again, and where leadership entire happening what's areas, portends to of on key you small when position When fun. Internet, we're a that's share look Verizon opportunity new of a smaller across markets for areas And the in XX% so lot in look across a high-speed we're markets of of markets us we are for the in at the lot with market,

between a in been in areas you that having to important, catalyst make net of that's choice geographies mobile these XX look us when years been been But last the years or in more markets went have Internet network, high-speed out from talking certainly at as consideration. adds that a and these particular about great a while XX great that's our in to that for not a smaller last in and terms value for perspective. be X/X of front of for the the total this -- particularly underserved big door and never About areas, HSI,

So, fun it. lot we have of doing a

a that they XXs lot places, in. does these those and into story shows and mean, switching really see our And brands want last of our experience. that of the with a I have we many that to the well we shares And customers resonance have start, with years given

So, markets markets we're very in and pleased responding. without the consumers are these

go -- sorry. Terrific, let's back

his The question was second part CapEx. of

forgot almost about network. I

fees CapEx to answer $XX where the Yes, the billion run rate. yes, is billion $X

So that also that's and 'XX line done with beyond. we're getting

off investment coming an for We're network can mean year has in had opening in this company. that in that. for see what a accelerated historic Thanks the the Mike's coming been are we XXXX. spend John. I from comments, question, you And results

Our just the not disputed is marketplace. in XG leadership

leadership, that's is other business, for I translating which just Jon to just series opportunities progress overall across too. So country outlined great network the growth parts the now tremendous as and a thought of rolling of in many

a massive but of as integration So, year. look at was at in the effort, level got we effectively complete ahead And we build the covered overall we're a program XXX by will footprint last now took with our we XXX covered a sustainable million That as schedule ultra XG people in 'XX, look we're announced there. great place on the in we network, just of great strides. year. with people footprint And capacity number million we the U.S. end this capacity that and be Today, ultra because our

announcing continue to in our just I we're first trying it's to fast that to commit major spectrum, XG target business. our experience a our on Why, continue of addition neither your So a assets expand powerful part we considered delivering as question, tremendous our great million a John, or XXX customers. reach across even have We're number to XG that XG. as spectrum because And to to achieve. we portfolio that pain entire service to competitors mean, the a to is XG country. of we can.

So position that spectrum today.

And and having XXX XXX currently I this year. we've end some on combined We Verizon spectrum dedicated targeting megahertz the that of mid-band that more to markets. number, by space. we're than the that's, have AT&T XG just And XG, are said think, megahertz the

how And deploying talked about X.X not just we're gigahertz. recently so, we've

the of PCS the powerful adding as big XXXX. also in part program through space. in spectrum We're a we move That's

C-band You asked spectrum. DoD about and

We opportunity mid-band that FAA, great XXX deployment XXXX a megahertz get going the to we assets as Probably us is industry-leading to for cetera, the to but up with et on long deploy have before leverage plan there. pentanes. the and cleaned some be an proposition spectrum

that. unbeatable this with for, now delighted U.S. recent all Mike something for as I our network network way the is just hands. benchmarking is exciting on clearly think overall But The across leadership, XG is markets working business and the the more network and the in demonstrates today especially team I the progress, referenced been decades in for So that mean, we've

for to a year So on but 'XX work be a do, the lot that extend to plan is us, continued will busy

Neville's what million of One is we're the things in front that competitors, if still said ahead already, you years know, our exactly at our this he and two lots I ago, can quoted be out unfolded on covered to years you competitors. XXX has as least two of from ahead years run. just people three take told what that's network And statistics, jumped in listen by you has ultra now, has said emerged We XG, leadership John, room and that story of were we at that we Neville capacity. from away, years to two that we'll of you had

of competitors be the two our years. goal to Neither the next any in time has stated there

And XXX next the on yet, million XXX to year. the than for fact, less of day. part the to me, going that's mid-band happening. get experience just not we're But That's Neville We're from deployed factors you XXX. years actually is heard from that. of from Because now, that's XXX our exciting capacity every massive mid-band, the more stopping they've it's overall, future not to expansion on stated In people a this way end is about two to testing there. year, in XXX you go megahertz

far, So ago. are speeds medium faster than years our just Xx three

In has more They're competition. XX customers of Our where of These month. combined, are how Magenta rest generating MAX the Magenta our a to MAX you versus room and broadband, advantages industry adds net lots gigs big run. the know is. using than we're

capital the network, that's in massive run billion and of that's year. still billion the heels And all to within just $X coming so in $XX capacity the the that's rate per on of this not

from Our Stanley. Simon with Morgan next question comes Flannery

You question. with your may proceed

up teed you Mike, my question.

got room run of wireless. on you've said to fixed lots You

the critique on around competitors on limitations the of capacity, Some product speed.

now of perhaps base a got So customers. you've

couple now. a over of behavior years seen You've

much are quick of to this product network? market And the can the macro. expand what's just expand ability a to continue take? do you capacity word then maybe think on the the your to learnings? How We share to And continue footprint

anything about You seen, on yet? patterns any other concerns some cautious payment behavior or talked you've

who of Great. fiber provider. is Well, it's a obvious. stating first somebody on When broadband, the kind

like you as saying, not at we're as as the faster. best-selling It's kind product. So that good people our a world's at Toyota car, know of product finger the pointing

best-selling Toyota you Yes, and case the that's car. perfectly want. faster XG the world's because but in the look if is of have what people T-Mobile, We car. broadband -- it's because And suited home to

It's the capacity And are of at fiber, transparent. promoter that higher some the simple that has scores higher to points cable. patently although It people the for overall less net low which highest households. want. millions portable speed capacity therefore, think It's And is they cost. of in radically tens it than the than points than industry, obvious, strain of it's allows XX of potential and has within a XX fiber,

areas are of or from And from cable, places coming just DSO. most or rural directly unconnected our customers not

this people's talked X launched of product, kind room tracking of numbers, we a can X we're to it to that. we've product as so see from got here And of mix beautifully with about homes. that lots million right you And million needs, our we run. services to to the demonstrates meet When

And strategy, or product we're the question augment here? comments not that ways about support are. it. looking where before a gave to go could whether and expanding is I do that's at that of capacity have from because now And winning we we massively we course, But

and cable. keep One the mind of in of capital right? structure, economically, unlike and this the product is burdened that not far things is cost by to This fiber amortization so

tomorrow up. where there's And market now that So And some places are million able XX capacity even from applied to XXX morning, of those our million. means take on customers and XX eligible have for moving XX homes to deployed millions million out excess say, We're rapidly nationwide, of find expanding mobile soaking though yes. we're that board we we'd through broadband capital places and that of homes with we million the it you there. service,

we that so beautifully And is is footprint. the And product big the times. think a suited to

can to consumer it. question the not speak seeing I perspective, No, on environment. the macro a From we're

on we in this a bit a stable churn. actually actually when in voluntary Of And to what Verizon QX out an and think area of bad just in was is course, QX we But metrics. very or percentage little saw exactly on of AT&T QX, revenue we those we're about than cautious. lower laid improvement debt where fact,

monitor. we're we something at sure looking it's closely making would So, and

tailwind around. not is nothing us. go into could but looking overall time we a a you just with that be right you again an cautious, extent fabulous for the the and might a for perspective, of and a said, lot look us we're recessionary coupled wireless time sure a now also And opportunity being time set the XG it proposition moment perspective, could leadership, and of concern. Again, value for create it consumer one at seeing from has that pressured consideration us inflationary those. of where to this leadership, moment, from spend you because at but As translated as only costs consider the make of be categories network being we're making a this And you're is gives

debt surprise our with lower spike voluntary for How sure involuntary for QX. lower In you inflation ready after than consumers companies was actually I were last mean, that the QX and QX. moderate QX from saw QX in we QX spring. We're making churn know. than bad but fact

are rates a been and people the us which than after question especially are debt of for merger. always bad lower customer had, Sprint base, AT&T's our Our showing quality has the

far coming. but very future foregone like economic stressful times conclusion And signing that everybody are the a it else, from so, we're as we take in

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case, emphatic And no, we it. the ready are the so, we're other answer but question is not to seeing in

for Thanks color. the

Yes.

So couple, have between up. this, should call go we Magenta. was out to pointing have we at can't at -- one there's in to guys a that's see up but open always us you -- but here, go screens from Twitter and Jud, you with And questions, we I should to like it we'd Twitter going

a talking actually what's So, of long but growth, its good kind is they telco question. about, the momentum win, starting doing they have goes have build really cable to It we've to industry-leading T-Mobile it's -- which to to in maintain a something giving been space.

talked terms talked And like coming. it's about them this who's uptick. et a long It additional keep about earlier now of results had printed, because the you for us in question. you're lots getting it looks interesting cetera, of you adds recent cables a adds that QX. to tell add we rate category, the net to for that transference I seeing customers. cable, And convergence we like I us just in to being time in run saw would that me on. to looks And been We

numbers you over from is people this coming dynamic. cable, what's is and in New from But created, interesting. growth phone surge that see interesting as prepaid being recent a

At of the one a incumbents wireless time when three experienced churn. better-than-expected every

than has for in in well, a was some, it you about it was but surprise that And surprise didn't as tell the us, better AT&T should versus at cable was ago. net some, kind year of for churn adds. little So falling. what's us, QX on. for falling uptick And expected, a well bit a moment, when going

as me, us we against contact look you this at is everybody sort it for expect, So would sport since as a as else, of right? of, sort

Comcast able so, this of year at versus more I net net deliver additions Verizon, additions year, industry, And of the the the of to rest the look delivered was half T-Mobile of in wireless, while AT&T, what's XX% and combined the half the Charter 'XX. interesting second year, if less in in postpaid half year versus is second second last postpaid phone this XX%

go back? and the of at market time So a better. better separation -- more Twitter we were doing our one Jud, when in on terms from any people ask before

Not yet.

we'll the and to keep Great. watching. line back go Let's

please? Operator, next question

New Research. Our next Street question comes Chaplin with from Jonathan

your proceed You with question. may

Thanks for question. taking the

market size what have bit us fact a is really of wondering and the market I'm the around what can markets course context that terms you of market XX% the size give over of context gave for little the You on to from more sort in and the great small market moved like and being? XX%. shares your rural the that this you've business progressed market of of you how see year, if overall

the best mean, you net things I that heard before of one Callie is in history. the of QX was add one from quarters our ever

reasons they interested is long sales years of at are than where that else. in in one there this is are shaping those the the cycles strategic we've comfortable down this anybody interested couple this So, with And pike than -- how in now, but up. ago. were XG been for we're very story we're this in CIOs them. of really And is we're engagements a And conversations, in longer more way market.

comfortable So, that And you. competing with with market we're we very we're shared share your We're are. aspirations track Analyst question, to extraordinarily much we the for where on well. very Day

of wireless fixed you us business broadband? mix can the give in Mike,

we I a think did mean fact. You I right new we that as don't should haven't. now disclose

we've in there. what majority seeing from consumer, continued the uptick Callie just mentioned said but continues it growth you're I business to is, in be think as side the

well. side as of the lot continued And room a see on business run obviously, we So the in room space. to consumer

maybe in of business that did wrong see is is doing space. on area. us that got the It's that Yes. that the notes what's surging that kind overwhelming some business I is in majority it's is well, for but the it consumer

question next please. Operator,

Feldman Goldman Sachs. from with next Our comes question Brett

with proceed question. may your You

post of to certain outlook this to from behind here. strong actually we from -- important the seems for billing know churn lot that your very add burdened integration know the churn. And think integration about there's the time. at pay adds type levers haven't at year? integration net results your is I may yet. drive churn like to the I'm those elevated is to remaining a postpaid in of phone like but wondering, throughout points lower higher estimates be level, I how I'm don't maybe despite being benefits able And sustain churn been you've it it how what just any related in those migration a residual you, merger net So, by if sounds curious seen activities postpaid embedded you

Yes.

which principally, First churning think drove of been brand in run network, run. value all, the Magenta satisfied we're we're a the price, be yes, look, yet. while not you I is postpaid brand comes room the And won't run most blended in journey. this we've room best But churning until on best to service the most integration, room is to And great of And to the best We from brand. industry. because we've some to I through certainly more that got there's shows the industry. brand T-Mobile this improved, this

where that's going. we're goal. so And That's the

room the the some at not it's course, to for because point. customers on this All very chop run it hard up anymore integration. of is, we're are there's separating destination to you on But it And network.

anymore Some to you to that destination that you of not determinative we opaque try the on to make have are not very which biller sort of them transparent. and It's biller biller. as because

in T-Mobile called many cases. You're

plans, chop and to hard people as settled fantastic on to well run to device with -- on both still careful services. room yes, as to feel But rate get their there's just into clear now. it's it's service their up So it transparent very

promoter game gives which in our opportunity a in give them the best T-Mobile. a network great voice Give translate famous the service and scores to and churn vote know we for Give by to un-carrier That's the that to express in for devices. plan are the how the that's to done. and bigger highest path them why them first is industry. to time industry, to the people that brand best great deal bar fantastic them worst lowest not, But our expect I'd that I say customer a we're the the allow that them is give them net execute, moves caring for

or bundle question. If a churn Where the base, as with your churn you as on churn want in customer extent follow-up stand-alone to wireless mind, guess perhaps understanding a your to just the you impact if are I of either profile broadband of it mobile. fixed mobile the has

would it that We're have cohorts business based us of and really happy with age into at is cohorts been sort we what it. with which -- What beautiful more is have look settling into any it we on are few people you people do is you been X.X exactly just with with years, weeks. the aged you a see a And us what that what pattern. expect,

in the million base subscribers broadband went X.X from months. industry we in youngest the the all because nothing have last We to few

-- and are if happens dig home things up sending it you dynamic on wind We're with not that that it. to no understand the really us router we're encouraging modem drill And of the down as file to very And so, sort a And different take it we there's of than some a a of drug you truck the do, love trial no holes And is break to letting have and relationship. cost. pleased. house it, your ditches that to totally therefore, to when We're a you the sticking in your kinds not, if all side and And give or shot. of house harm, this to one business cost of we some barriers it. wireline. trial,

gave let's treat it, that pouring well keep us that with into transparent work. try wasn't portion anything. And perfect of not as would The to will were a they is, it vast doesn't for costing don't, people as now really whether really majority customers and shot, This we we're and you this it or year up wind a as them network. we long small but right because capacity that this again in the

different dynamics early churn business makes in better it are this one of broadband that business a traditional things of totally the than like a So, the model. is

Barden America. question next Bank comes with David Our from of

You with question. proceed may your

the Peter. So, first be would I for guess question

the within the to seems the understand what's this midpoint to moved make $XX move changes If clean your original kind Analyst be just an on billion, parts a keeping be second the billion step of $XX be, kind a for be it stock then Mike, and would appetite And billion, the $XX.X to for to T-Mobile stock you those program proactively get $XX of rid what's not out keeping go-forward guidance from share and and to from And million the going lockup that, could buyback that north down? your of or question changed things? of of expectations $XX would moving us midpoint stock between just outlook issue guidance up? the from sure million. what SoftBank through billion I headwind there from of $XXX the that Is confines flow And reach basis? appetite cash your to to the and seems two what that's are whatever reason, in up free to Day and

great Those Dave. questions, both are

flow. Let's start cash and with EBITDA

the since XXXX level. the a tailwinds could you give kind us early high As eliminate and just of headwinds all

Yes.

actually pulling XXXX But it lot stations terms plan we and color. business But talking beating it. the we're is inside. about about the of And you about and what only say integrity in into Peter, some of that can give of shaping should quite our guidance. And it the were we're some expecting different maybe a still it. the our than talking of

accelerate just think, there you since what's tremendous incremental trajectory we've seen and happened that Analyst then, And amount certainly and see. Dave, the synergies. and Absolutely, grow what the of we tremendous seen saw Day when profitable than high-speed you've ARPA growth you've back I to a growth ability to Internet the had

since inflation of of one is lot the world companies. of then, a lot changed and elements, the On impacted has that's side, the a flip course,

walk than major lot lot negotiation in looks others, before us, on more around environments the after during low been we've insulated ability a costs merger environment. a why the to that and categories inflation of a rate low and interest our rate is For time when talked different we've with down early

So, why above and being of Day. takes and kind actually you us there's now that's guy the express lot Analyst confident see a puts able of to and a

and just continued When bit course, synergy drag somewhere that's year, sale the core wireline profitable EBITDA I of of about And EBITDA. that's the close have, think unlock. of a throughout shaping the EBITDA midyear in the one is on core around is assumed you're things core the course of what going continued the of little and a guide the to growth

continued year probably core like about think I approximately QX then the the as range throughout and of unlock So in course EBITDA. on the X.X

billion. of One few XXXX in cash remarks a talking about free you now, first how what think the which industry, I items few revenue been these to achieving cash conversion onetime despite around we're merger-related there expenses, is kind actually onetime in flow, and from in prepared I'll flow the now spoke and in flow things as that And the a service I then consider. is time foremost of free cash need $X for to long And we've highlight. 'XX highest free that really $X.X to billion about is to

now little of expenses gives of at you higher unlock million, run incremental we billion assumed $X total a terms an And Day by up $XXX bit about merger-related synergies. that's in Analyst than total rate and to that

other anticipate with remember, is saw but to lot of a cash cyber expense-related And flow that's settlement 'XX. take the So, -- we charges the in one in a class XXXX, associated the outflow XX us event. the you action

as recall, And an to IT you then agreement. is we the related take-or-pay related last where again wireline, have

The first then significantly after million from close year and down tapers $XXX is there.

that about we're half 'XX. assuming so, flowing into of And

And kind and hopefully, flow core down almost you of the EBITDA takes. puts take all guide. that to answered how cash that's free So

next you're right. the love question, Dave, to guide on XX% cash like, way, is because growth. by our for just flow have year-on-year And the I year

just low We have little the hope And a is answer so. respect. I

happens. Let's see what

say when sides for imminent. second anyway. there's know deal potential talked very you Obviously, we're And the SoftBank past people in wouldn't a SoftBank. on that believe both we question is I So we're We well. a reason that, there's a transaction, guys a a had constant lot, But about which XXX communication. of moving

give And for think lot they're the don't of this a a analyst to this We've they we've it. because planned have us average a always getting target is on business. incentive so, or they believed discount XXX always event deal

If you coming. profile the cash durability look expanding and event is our at our this rapidly we probably strategy, of growth think flow

so So, and why discount and it on color like of and to feels little but for would were bit look -- want take that's it feel would doesn't us, they it "Yes, going it, give I we discount to that you we out there's say, like a at a it.

wouldn't but say imminent, transaction it's a I impossible is say So either. I wouldn't

know cut we But -- operator and thank for the think that yes, I off. you great. you

market, switch T-Mobile net with John Mike happening actually Bill T-Mobile, MVNOs. prepaid. the Fryer, on about losses. MVNO includes great what's What's going Since if the at state over, market. look can in was T-Mobile of only us Twitter, and positive to the so going some MVNO you prepaid Katz, had Mike And others the And what's little Katz it prepaid, with I'll for on a looking questions. on always also tell prepaid Hull bit we has competitors, including

think in growth we're prepaid. tailwind have being gains. to We have us. I the Metro Yes. in we continue one And number we the positive Like most importantly, were really prepay excited Metro. a what the see with and about happened big Mike with one brand And said, for only

course a of partners robust big and 'XX MVNO had have growth also significant including exclusive QX. in of over partnerships, that really We also set healthy the and

set unique brand distribution that reach T-Mobile partners And of always we've are fully that brand. the the in got focus don't we underrepresented unique and a with with T-Mobile segments both diverse that also sometimes

are portfolio So, of reaching feel the products that prepaid about market. we really and the good brands

predicted that an where it it find from transference postpaid longer environment last. lasted people most lots and to in particularly which I there's going prepaid on has gratifying of than would

Our because because you quarter. market continues the of lots have be strongest in prepaid only momentum That's industry that from the and to one seen this to of times. postpaid economic grew the fantastic brand across prepaid the the

of do earlier brand the history the to the yet the macroeconomic XXXX. to premise the about question strong. was we're seeing prepaid ever on industry lowest lowest what in prepaid and and postpaid our for qualifying in are churn continue remains environment. so People in in this And our The

bond business T-Mobile, Metro a -- where its is They love this it's has source for They strength. so by a And and that real long customers. stick great with with a time. a it of

does that us the take end the -- Jud, to program? is that of

got It take more does. one We can then probably and question up. we to hop it

got day. So a operator, one call then it we more and a

with So comes from Wolfe question Research. Peter our Supino next

your question. with proceed may You

postpaid phone on question ARPU. A

a MAX annually part fantastic and to year model for flat really ARPU. steady Thanks was is still your in For ARPU to many XXXX down years, 'XX. MAX. sell-in sounds for

And for and might so, we even just I'm more outlook in growth see flattish. maybe ARPU thinking a to similar to not your in why expect wondering about year 'XX. XXXX

A early that is the it's not where it's in year, it of clear part of be. because will the dynamics and competition

side. on back the of multiyear all on puts as what more to about Peter be happening as you side, much thought And kind and then, service this, much back talked that didn't to anticipate targets, going would there our and takes, look sort Day of device the up If just Analyst wound we actually ARPU we back revenue on, the

growth And sort last a big where service 'XX competition service because so ARPU achieved of for we costs revenues on we and guided accordingly had factors we of the year on side that. the the and But reason ARPU was device unexpected revenues shifted.

in it half, than So there's comment little stable, early ARPU. generally for growth second the to opportunity would be more that. on reasons there's We that a just the versus for do if an and half first it's know

like this ARPU, with that's that not are stronger Magenta ever hand, stronger success we dynamics other about be are where They careful be but underlying is. The on moderating. finding on with MAX really been. are we they've the than But could dilutive military, into But things seniors, basis. with hooked to getting other and people And business CLV to not to fantastic ARPU. on why a have we're

board, guiding including we're relationships for for continue broadband. see opportunity we across and with of growth us to down customers new ARPA, the device and business types their because on home lots double to including

of gives that hopefully, it why of unfolded puts takes So bit the way a on you and little unfolded. kind it

I today. catching forward you Again, us joining again up look everybody, soon. Thanks, to for with

If you out have team, the and have day. Media Investor any other and great reach Relations a to please Relations questions,

Thanks, everybody.

Thank quarter T-Mobile participation. you and Ladies concludes call. the for gentlemen, your fourth this earnings

may have now pleasant day. and a disconnect You