T-Mobile US Inc (NYSE:TMUS) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 08:30 am ET


T-Mobile US Inc (NYSE:TMUS) Q4 2018 Earnings Conference Call Transcript


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Good morning. Welcome to the T-Mobile US Fourth Quarter and Full-Year 2018 Earnings Call. (Operator Instructions) I would now like to turn the conference over to Mr. Nils Paellmann, Head of Investor Relations for T-Mobile US. Please go ahead, sir.

Nils Paellmann

Yes, thank you. Also good morning, welcome to T-Mobile's fourth quarter and full-year 2018 Earnings Call. With me today are John Legere, our CEO; Mike Sievert, our President and COO; Braxton Carter, our CFO; and other members of the senior leadership team.

Let me just briefly read the disclaimer. During this call, we will make forward-looking statements that include projections and statements about our future financial operating results, our plans, the benefits we expect to receive from the proposed merger with Sprint and other statements that are not historical facts. Such statements are based upon the current beliefs and expectations of our management and are subject to significant risks and uncertainties outside of our control that could cause our actual results to differ materially, including the risk factors set forth in our annual report on Form 10-K.

Reconciliations between GAAP and the non-GAAP results we discuss on this call can be found in the quarterly results section of the Investor Relations page of our website. In addition, in connection with the proposed transaction on July 30, 2018, we filed a registration statement on Form S-4 with the SEC related to the merger. The registration statement became effective on October 29, 2018, and is available on the new T-Mobile website. It contains important information about T-Mobile and Sprint, the merger and related matters.

With that, let me turn it over to John Legere. John?

John J. Legere

All right. With that exciting opening, good morning, everyone. Welcome to T-Mobile's fourth quarter and full-year 2018 earnings call and Twitter conference coming to you live from Washington, D.C. We've prereleased our record-breaking customer results in January 9. And the financials released today are just as strong. Let me quickly touch on the highlights, then Braxton can jump into the details and we'll get to your questions.

First, let me -- let's start my takeaways from the quarter. T-Mobile delivered another record-breaking quarter in Q4. Yes, another one. Despite the work underway to close the merger with Sprint, we continue to drive our business beyond expectations. And I couldn't be more proud of our T-Mobile team. We had the highest total customer net additions ever in Q4. And we followed that up with record-breaking financials, which is a winning formula for our shareholders.

T-Mobile led the industry in postpaid phone net adds for the fifth year in a row. And we posted a Q4 record-low branded postpaid phone churn. Both service and total revenues hit record-highs in this quarter, while adjusted EBITDA was our best Q4 ever. Our 2019 guidance shows our confidence for the stand-alone outlook for T-Mobile. We continue to meet the needs of wireless customers and translate that into incredible results. I feel good about the state of our business going into 2019.

So let's