T-Mobile(TMUS)2023-04-28 00:53Financial Data and Key Metrics Changes - Q1 2023 saw a 6% year-over-year increase in postpaid service revenue, the best in the industry [16] - Core adjusted EBITDA rose by 9% year-over-year, with a margin increase of 270 basis points [16] - Free cash flow increased over 45%, reflecting strong financial performance [14][16] Business Line Data and Key Metrics Changes - T-Mobile added 287,000 postpaid account net additions, leading the industry [9] - Postpaid net additions reached 1.3 million, surpassing AT&T and Verizon combined [9] - High-speed Internet customers increased by 523,000, with expectations of surpassing competitors in broadband customer additions for the fourth consecutive quarter [13] Market Data and Key Metrics Changes - T-Mobile's prime customer base hit an all-time high, particularly in top 100 markets [12] - The company captured a win share of switchers in the upper 30s in smaller markets and rural areas [12] - T-Mobile's market share in households increased to 16.5%, exceeding the target set for 2025 [44] Company Strategy and Development Direction - The company continues to focus on profitable growth and expanding its network leadership, particularly in underpenetrated markets [9][11] - The recent "Phone Freedom" initiative aims to attract customers from competitors by offering more flexible plans [5][62] - T-Mobile is committed to maintaining a differentiated strategy that emphasizes customer value and network quality [11][41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising full-year guidance based on strong Q1 results and ongoing customer demand [4][16] - The competitive environment remains challenging, but T-Mobile's unique strategy allows it to navigate effectively [41] - Management highlighted the importance of customer satisfaction and retention, particularly in the broadband segment [33] Other Important Information - The company repurchased 33 million shares for 8.5 billion as of April 21 [17] - T-Mobile expects merger-related costs to be approximately $1 billion before taxes for 2023 [19] - The sale of wireline assets to Cogent is expected to close in early May, impacting revenue and expenses [21] Q&A Session Summary Question: Revenue per user and Go5G plans - Management discussed the incremental nature of new plans and their impact on ARPA, emphasizing the mix-driven nature of the metric [23][24][28] Question: Home broadband churn and fiber trials - Management reported high Net Promoter Scores for broadband services and decreasing churn rates as customer tenure increases [31][34] Question: Competitive environment and buyback strategy - Management characterized the competitive landscape as rational and expressed confidence in their ability to grow despite challenges [40][41][50] Question: Business market share and Phone Freedom impact - Management highlighted significant growth in business accounts and the positive reception of the Phone Freedom initiative, which is expected to enhance EBITDA [56][62]