Logo

United States

Customer development

thousands

 

 

 

 

 

 

 

 

June 30, 2021

Mar. 31, 2021

Change
June 30, 2021/
Mar. 31, 2021 
%

Dec. 31, 2020

Change
June 30, 2021/
Dec. 31, 2020 
%

June 30, 2020

Change
June 30, 2021/
June 30, 2020 
%

Customers

104,789

103,437

1.3

102,064

2.7

107,720

(2.7)

Postpaid customers

83,848

82,572

1.5

81,350

3.1

77,753

7.8

Postpaid phone customersa, b

68,029

67,402

0.9

66,618

2.1

65,105

4.5

Other postpaid customersa, b

15,819

15,170

4.3

14,732

7.4

12,648

25.1

Prepaid customersa, b, c

20,941

20,865

0.4

20,714

1.1

29,967

(30.1)

Adjustments of the customer base

thousands

 

 

 

 

 

Total adjustments of the customer base in
2020

Adjustment of customer definition for Sprint’s prepaid business as of
July 1, 2020c

Adjustment of customer definition at Sprint as of
Apr. 1, 2020a

Sprint
additions as of
April 1, 2020

Customers

28,354

(9,393)

(4,853)

42,600

Postpaid customers

28,830

0

(5,514)

34,344

Postpaid phone customers

24,055

0

(1,861)

25,916

Other postpaid customers

4,775

0

(3,653)

8,428

Prepaid customers

(476)

(9,393)

661

8,256

a

Includes customers acquired in connection with the Sprint Merger and certain customer base adjustments on April 1, 2020.

b

In the first quarter of 2021, we acquired 11,000 postpaid phone customers and 1,000 postpaid other customers through our acquisition of an affiliate.

c

In connection with obtaining regulatory approval for the Sprint Merger, on July 1, 2020, substantially all prepaid customers acquired were subsequently acquired by DISH. Upon closing of the transaction with DISH, we entered into a Master Network Service Agreement to provide network services to customers of their prepaid business for a period of up to seven years. As a result, we included a base adjustment to reduce prepaid customers by 9.4 million in the third quarter of 2020. The prepaid customers included in our total customers as of June 30, 2020 include the customers subsequently acquired by DISH and are expected to be different than the customers included under the Master Network Service Agreement, and classified as wholesale customers, due to differences in customer reporting policies.

Customers

At June 30, 2021, the United States operating segment (T‑Mobile US) had 104.8 million customers, compared to 102.1 million customers at December 31, 2020. Net customer additions were 2.7 million in the first half of 2021, compared to 2.1 million net customer additions in the first half of 2020, due to the factors described below.

Postpaid net customer additions were 2.5 million in the first half of 2021, compared to 1.9 million postpaid net customer additions in the first half of 2020. The increase resulted from higher postpaid phone net customer additions, primarily due to increased retail store traffic due to closures arising from the coronavirus pandemic in the prior period, partially offset by higher churn. In addition, this increase was partially offset by lower postpaid other net customer additions, primarily due to higher disconnect volumes from an increased customer base.

Prepaid net customer additions were 227 thousand in the first quarter of 2021, compared to 190 thousand prepaid net customer losses in the first quarter of 2020. The increase was primarily due to lower churn.

Development of operations

millions of €

 

 

 

 

 

 

 

 

 

 

 

Q1
2021

Q2 2021

Q2 2020

Change %

H1
2021

H1 2020

Change %

FY
 2020

Total revenue

 

16,483

16,643

17,297

(3.8)

33,126

27,455

20.7

61,208

Profit (loss) from operations (EBIT)

 

2,144

2,147

1,959

9.6

4,291

3,468

23.7

9,187

EBIT margin

%

13.0

12.9

11.3

 

13.0

12.6

 

15.0

Depreciation, amortization and impairment losses

 

(4,577)

(4,484)

(4,589)

2.3

(9,062)

(6,673)

(35.8)

(15,665)

EBITDA

 

6,722

6,632

6,548

1.3

13,353

10,141

31.7

24,852

Special factors affecting EBITDA

 

(151)

(272)

(892)

69.5

(424)

(1,166)

63.6

(270)

EBITDA (adjusted for special factors)

 

6,873

6,904

7,441

(7.2)

13,777

11,307

21.8

25,122

EBITDA AL

 

5,446

5,248

5,412

(3.0)

10,694

8,298

28.9

20,628

Special factors affecting EBITDA AL

 

(261)

(489)

(892)

45.2

(750)

(1,166)

35.7

(370)

EBITDA AL (adjusted for special factors)

 

5,706

5,737

6,304

(9.0)

11,444

9,464

20.9

20,997

EBITDA AL margin (adjusted for special factors)

%

34.6

34.5

36.4

 

34.5

34.5

 

34.3

Cash capex

 

(10,513)

(2,725)

(2,679)

(1.7)

(13,237)

(4,387)

n.a.

(10,394)

Total revenue

Total revenue for the United States operating segment of EUR 33.1 billion in the first half of 2021, increased by 20.7 %, compared to EUR 27.5 billion in the first half of 2020. In U.S. dollars, T‑Mobile US’ total revenues increased by 32.0 % year-on-year primarily due to increased service revenues as well as increased equipment revenues. The components of these changes are described below.

Service revenues increased in the first half of 2021 primarily due to higher average postpaid accounts, higher postpaid ARPA (Average Revenue per Account), higher wholesale revenues primarily from our Master Network Service Agreement with DISH and the success of our other MVNO relationships, and higher other service revenues primarily from the inclusion of wireline operations acquired in the Sprint Merger.

Equipment revenues increased in the first half of 2021 primarily due to an increase in device sales revenue, excluding purchased leased devices and liquidation of returned devices. In addition, equipment revenues increased due to the Sprint Merger including increases in lease revenues due to a higher number of customer devices under lease, an increase in sales of accessories and device sales revenues, due to increased retail store traffic due to closures arising from the coronavirus pandemic in the prior period and a larger customer base. Additional increases in revenue primarily due to the Sprint Merger include those associated with an increase in sales of leased devices, primarily due to a larger base of leased devices.

Adjusted EBITDA AL, EBITDA AL

In euros, adjusted EBITDA AL increased by 20.9 % to EUR 11.4 billion in the first half of 2021, compared to EUR 9.5 billion in the first half of 2020. The adjusted EBITDA AL margin was 34.5 % in the first half of 2021 on par with 34.5 % in the first half of 2020. In U.S. dollars, adjusted EBITDA AL increased by 32.3 % during the same period. Adjusted EBITDA AL increased primarily due to higher service revenues and equipment revenues as discussed above. These increases were partially offset by increases in expenses primarily due to the Sprint Merger including those associated with device cost of equipment sales, excluding purchased leased devices, leases, backhaul agreements, external labor and professional services, and advertising. Additional increases in expenses primarily due to the Sprint Merger include those associated with employee-related and benefit-related costs primarily due to increased headcount, costs related to the liquidation of a higher volume of returned devices, and leased device cost of equipment sales, primarily due to a larger base of leased devices. In addition to these costs primarily due to the Sprint Merger, were increases in expenses associated with device cost of equipment sales, excluding purchased leased devices, primarily due to an increase in the number of devices sold driven by increased retail store traffic due to closures arising from the coronavirus pandemic in the prior period and higher average costs per device sold due to an increase in the high-end device mix, the continued build-out of our nationwide 5G network, and cost of accessories, due to increased retail store traffic due to closures arising from the coronavirus pandemic in the prior period.

EBITDA AL in the first half of 2021, included special factors of EUR -0.8 billion compared to EUR -1.2 billion in the first half of 2020. The change in special factors was primarily due to higher special factors recognized in the first half of 2020 including supplemental employee payroll, third-party commissions and cleaning-related expenses associated with the coronavirus pandemic and a postpaid billing system disposal, partially offset by a transaction fee received from SoftBank. Special factors also included Merger-related costs comprised of transaction costs, including legal and professional services related to the completion of the Merger and acquisitions of affiliates; restructuring costs, including severance, store rationalization and network decommissioning; and integration costs to achieve synergies in network, retail, IT, and back office operations. Overall, EBITDA AL increased by 28.9 % to EUR 10.7 billion in the first half of 2021, compared to EUR 8.3 billion in the first half of 2018, due to the factors described above, including special factors.

EBIT

EBIT increased to EUR 4.3 billion in the first half of 2021, compared to EUR 3.5 billion in the first half of 2020. In U.S. dollars, EBIT increased by 35.6 % during the same period primarily due to higher EBITDA AL. In U.S. dollars, depreciation and amortization increased by 48.5 % primarily due to the continued build-out of our nationwide 5G network, higher depreciation expense on leased devices resulting from a larger base of leased devices as a result of the Sprint Merger, higher amortization from intangible assets acquired in the Sprint Merger, partially offset by certain 4G-related network assets becoming fully depreciated.

Cash capex

Cash capex increased to EUR 13.2 billion in the first half of 2021, compared to EUR 4.4 billion in the first half of 2020. In U.S. dollars, cash capex increased by USD 11.0 billion primarily driven by an increase in spectrum purchases, primarily due to USD 8.9 billion paid for spectrum licenses won at the conclusion of the C-band auction in March 2021, network integration related to the Sprint Merger and the continued build-out of our nationwide 5G network.

4G
Refers to the fourth-generation mobile communications standard that supports higher transmission rates (see LTE).
Glossary
5G
New communications standard (launched from 2020), which offers data rates in the gigabit range, converges fixed-network and mobile communications, and supports the Internet of Things.
Glossary
MVNO – Mobile Virtual Network Operator
Company that offers mobile minutes at relatively low prices without subsidized handsets. A mobile virtual network operator does not have its own wireless network, but uses the infrastructure of another mobile operator to provide its services.
Glossary
Postpaid
Customers who pay for communication services after receiving them (usually on a monthly basis).
Glossary
Prepaid
In contrast to postpaid contracts, prepaid communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations.
Glossary
Retail
The sale of goods and services to end users, as opposed to resale or wholesale.
Glossary
Service revenues
Revenues generated with mobile customers from services (i.e., revenues from voice services – incoming and outgoing calls – and data services), plus roaming revenues, monthly charges, and visitor revenues.
Glossary
Wholesale
Refers to the business of selling services to third parties who sell them to their own retail customers either directly or after further processing.
Glossary