United States
Customer development
thousands |
|
|
|
|
|
|
|
||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|
Sept. 30, 2022 |
June 30, 2022 |
Change |
Dec. 31, 2021 |
Change |
Sept. 30, 2021 |
Change |
||||
Customers |
111,755 |
110,023 |
1.6 |
108,719 |
2.8 |
106,920 |
4.5 |
||||
Postpaid customers |
90,414 |
88,787 |
1.8 |
87,663 |
3.1 |
85,913 |
5.2 |
||||
Postpaid phone customersa, b |
71,907 |
71,053 |
1.2 |
70,262 |
2.3 |
69,418 |
3.6 |
||||
Other postpaid customersa, b |
18,507 |
17,734 |
4.4 |
17,401 |
6.4 |
16,495 |
12.2 |
||||
Prepaid customers |
21,341 |
21,236 |
0.5 |
21,056 |
1.4 |
21,007 |
1.6 |
||||
|
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Customers
At September 30, 2022, the United States operating segment (T‑Mobile US) had 111.8 million customers, compared to 108.7 million customers at December 31, 2021. Net customer additions were 4.9 million in the nine months ended September 30, 2022, compared to 4.0 million in the nine months ended September 30, 2021 due to the factors described below.
Postpaid net customer additions were 4.6 million in the nine months ended September 30, 2022, compared to 3.7 million in the nine months ended September 30, 2021. This increase resulted from higher postpaid other net customer additions, primarily due to an increase in High Speed Internet net customer additions and wearables, partially offset by lower net additions from mobile internet devices. In addition, the increase resulted from higher postpaid phone net customer additions, primarily due to lower churn and higher gross additions driven by growth in new customer account relationships. High Speed Internet net customer additions included in postpaid other net customer additions were 1.3 million and 322 thousand for the nine months ended September 30, 2022 and 2021, respectively.
Prepaid net customer additions were 313 thousand in the nine months ended September 30, 2022, compared to 293 thousand in the nine months ended September 30, 2021. This increase was primarily due to the introduction of our High Speed Internet offering, partially offset by the continued industry shift to postpaid plans. High Speed Internet net customer additions included in prepaid net customer additions were 162 thousand for the nine months ended September 30, 2022. Our prepaid High Speed Internet launch was in the first quarter of 2022. Therefore, there were no prepaid High Speed Internet net customer additions for the nine months ended September 30, 2021.
Development of operations
millions of € |
|
|
|
|
|
|
|
|
|
|
||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
|
Q1-Q3 2022 |
Q1-Q3 2021 |
Change |
Q1 2022 |
Q2 2022 |
Q3 2022 |
Q3 2021 |
Change |
FY |
||
Total revenue |
|
55,636 |
49,516 |
12.4 |
17,880 |
18,440 |
19,316 |
16,664 |
15.9 |
67,791 |
||
Service revenue |
|
43,035 |
35,553 |
21.0 |
13,456 |
14,353 |
15,226 |
12,223 |
24.6 |
48,361 |
||
Profit (loss) from operations (EBIT) |
|
4,480 |
5,971 |
(25.0) |
2,044 |
918 |
1,518 |
1,680 |
(9.6) |
7,217 |
||
EBIT margin |
% |
8.1 |
12.1 |
|
11.4 |
5.0 |
7.9 |
10.1 |
|
10.6 |
||
Depreciation, amortization and impairment losses |
|
(15,008) |
(13,801) |
(8.7) |
(4,604) |
(5,443) |
(4,962) |
(4,740) |
(4.7) |
(18,338) |
||
EBITDA |
|
19,488 |
19,772 |
(1.4) |
6,647 |
6,361 |
6,479 |
6,419 |
0.9 |
25,555 |
||
Special factors affecting EBITDA |
|
(3,642) |
(962) |
n.a. |
(820) |
(1,304) |
(1,518) |
(539) |
n.a. |
(1,836) |
||
EBITDA (adjusted for special factors) |
|
23,130 |
20,735 |
11.6 |
7,467 |
7,665 |
7,998 |
6,958 |
14.9 |
27,392 |
||
EBITDA AL |
|
13,872 |
15,660 |
(11.4) |
4,914 |
4,141 |
4,817 |
4,966 |
(3.0) |
20,060 |
||
Special factors affecting EBITDA AL |
|
(5,327) |
(1,555) |
n.a. |
(1,258) |
(2,196) |
(1,873) |
(805) |
n.a. |
(2,637) |
||
EBITDA AL |
|
19,198 |
17,215 |
11.5 |
6,172 |
6,337 |
6,690 |
5,771 |
15.9 |
22,697 |
||
Core EBITDA AL |
|
18,101 |
14,976 |
20.9 |
5,741 |
5,976 |
6,384 |
5,180 |
23.2 |
19,912 |
||
EBITDA AL margin |
% |
34.5 |
34.8 |
|
34.5 |
34.4 |
34.6 |
34.6 |
|
33.5 |
||
Cash capex |
|
(13,008) |
(16,041) |
18.9 |
(5,535) |
(3,468) |
(4,005) |
(2,804) |
(42.8) |
(18,594) |
||
|
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Total revenue, service revenue
Total revenue for the United States operating segment of EUR 55.6 billion in the nine months ended September 30, 2022 increased by 12.4 %, compared to EUR 49.5 billion in the nine months ended September 30, 2021. In U.S. dollars, T‑Mobile US’ total revenues remained relatively flat during the same period. Total revenues decreased primarily due to lower equipment revenues, offset by higher service revenues. The components of these changes are described below.
Service revenues increased in the nine months ended September 30, 2022 by 21.0 % to EUR 43.0 billion. In organic terms, service revenues increased by 5.4 % year-on-year. The increase resulted from higher postpaid revenues primarily from higher average postpaid accounts and higher postpaid ARPA (Average Revenue per Account). In addition, service revenues increased due to higher prepaid revenues primarily from higher average prepaid customers and higher prepaid ARPU (Average Revenue per User). This increase was partially offset by lower wholesale and other service revenues primarily from lower advertising, wireline and MVNO revenues, partially offset by higher Lifeline revenues.
Equipment revenues decreased in the nine months ended September 30, 2022 primarily from a decrease in lease revenues and customer purchases of leased devices primarily due to a lower number of customer devices under lease as a result of the continued strategic shift from device financing from leasing to EIP. In addition, equipment revenues decreased due to lower average revenue per device sold, primarily driven by higher promotions, which included promotions for Sprint customers to facilitate their migration to the T‑Mobile US network and an increase in contra-revenue primarily driven by higher imputed interest rates on equipment installment plans. These decreases were partially offset by an increase in the number of devices sold, including higher upgrade volume for Sprint customers to facilitate their migration to the T‑Mobile US network, partially offset by lower prepaid upgrades.
Adjusted EBITDA AL, EBITDA AL
In euros, adjusted EBITDA AL increased by 11.5 % to EUR 19.2 billion in the nine months ended September 30, 2022, compared to EUR 17.2 billion in the nine months ended September 30, 2021. The adjusted EBITDA AL margin slightly decreased to 34.5 % in the nine months ended September 30, 2022, compared to 34.8 % in the nine months ended September 30, 2021. In U.S. dollars, adjusted EBITDA AL decreased slightly during the same period. Adjusted EBITDA AL decreased primarily due to higher bad debt expense driven by higher receivable balances, as well as normalization relative to muted pandemic levels and estimated potential future macroeconomic impacts. This decrease was offset by higher service revenue as discussed above, lower cost of equipment sales and cost of services excluding Merger-related costs, and higher realized Merger synergies. In U.S. dollars, lease revenues decreased as a result of the continued strategic shift from device financing from leasing to EIP by 56.2 % in the nine months ended September 30, 2022.
Adjusted core EBITDA AL increased by 20.9 % to EUR 18.1 billion in the nine months ended September 30, 2022, compared to EUR 15.0 billion in the nine months ended September 30, 2021. In U.S. dollars, adjusted core EBITDA AL increased by 7.4 % during the same period. The change was primarily due to the fluctuation in adjusted EBITDA AL, discussed above, excluding the change in lease revenues.
EBITDA AL in the nine months ended September 30, 2022, included special factors of EUR -5.3 billion compared to EUR -1.6 billion in the nine months ended September 30, 2021. The change in special factors was primarily due to higher Merger-related costs, expenses related to the agreed sale of the wireline business, higher legal-related expenses, net of recoveries, including the settlement of certain litigation associated with the cyberattack, and higher impairment expense due to the non-cash impairment of certain wireline business-related right-of use assets during the nine months ended 2022. The change in special factors is also impacted by other special items including certain severance, restructuring and other expenses and income, including gains from the sale of IP addresses, not directly attributable to the Sprint Merger. Special factors include Merger-related costs predominantly associated with the integration of Sprint and are comprised of integration costs to achieve efficiencies in network, retail, information technology and back-office operations, migrate customers to the T‑Mobile US network and mitigate the impact of legal matters assumed as part of the Sprint Merger. In addition, Merger-related special factors include restructuring costs, including severance, store rationalization and network decommissioning as well as transaction costs, including legal and professional services related to the completion of transactions. Overall, EBITDA AL decreased by 11.4 % to EUR 13.9 billion in the nine months ended September 30, 2022, compared to EUR 15.7 billion in the nine months ended September 30, 2021, primarily due to the factors described above, including special factors.
Profit/loss from operations (EBIT)
EBIT decreased by 25.0 % to EUR 4.5 billion in the nine months ended September 30, 2022, compared to EUR 6.0 billion in the nine months ended September 30, 2021. In U.S. dollars, EBIT decreased by 32.5 % during the same period primarily due to lower EBITDA AL, partially offset by lower depreciation, amortization and impairment losses. In U.S. dollars, depreciation, amortization and impairment losses decreased 3.4 % primarily due to lower depreciation expense on leased devices, resulting from a lower number of total customer devices under lease and certain 4G-related network assets becoming fully depreciated, including assets impacted by the decommissioning of the legacy Sprint CDMA and LTE networks. These decreases were partially offset by the non-cash impairments of certain wireline network assets during the nine months ended September 30, 2022 and higher depreciation expense (excluding leased devices) from the continued build-out of our nationwide 5G network.
Cash capex
Cash capex decreased by 18.9 % to EUR 13.0 billion in the nine months ended September 30, 2022, compared to EUR 16.0 billion in the nine months ended September 30, 2021. In U.S. dollars, cash capex decreased by 27.1 % primarily from a decrease 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, compared to USD 2.8 billion paid for spectrum licenses won at the conclusion of Auction 110 in February 2022 and USD 0.3 billion paid in total for spectrum licenses won at the conclusion of Auction 108 in September 2022. This decrease was partially offset by an increase in purchases of property and equipment from the accelerated build-out of our nationwide 5G network, including from network integration related to the Sprint Merger.