Earnings Labs

T-Mobile US, Inc. (TMUS)

Q3 2017 Earnings Call· Sun, Oct 22, 2017

$185.32

+1.41%

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Transcript

John Legere

Management

Hello, everyone. It's that time again. One of my favorite times of every quarter, when we get to report our financial and operational results. However, with all the rumors and speculation out there, we decided that we wanted to make sure you all saw and focused on our Q3 results and not just on the rumors and speculation that seem to fill the news every day. What better way to do that than to do a video blog, so here we go. Q3 was another great quarter for T-Mobile across the board. We broke records with our financial results, delivered incredibly strong customer growth, and we're raising our guidance for 2017 once again. Back when we started this Un-carrier journey in 2013, we said customer growth will lead to revenue growth, which will lead to growth in adjusted EBITDA and ultimately, free cash flow. Well, these results make that pretty obvious. Should I just drop the mic now? If there are still skeptics out there after 4.5 years, let me take you through these numbers. Let's start with our record-breaking financial results. Our service revenue grew to $7.6 billion in Q3, the highest in T-Mobile history. We expect to be the only company in U.S. wireless, growing service revenues year-over-year, call that one of my famous predictions. As a reminder, both AT&T and Verizon have lower service revenues today than they did in the first quarter of 2013, when the Un-carrier started. Meanwhile, our service revenues are up nearly 50% since then. And it doesn't stop there. Adjusted EBITDA hit $2.8 billion for the quarter, our best Q3 ever. Free cash flow? Another record. We generated $921 million this quarter, up almost 60% year-over-year, and we're hitting these records while continuing to invest in the network with CapEx up 24%…