Accelerated Customer Growth

• 1.7 million total net additions in Q1 2019, up 15% YoY
• 1.0 million branded postpaid net additions in Q1 2019, expect to be best in the industry
• 656,000 branded postpaid phone net additions in Q1 2019, expect to be best in the industry
• 69,000 branded prepaid net additions in Q1 2019
• Record-low branded postpaid phone churn of 0.88% in Q1 2019, down 19 bps YoY

Record Q1 Financial Performance (all percentages year-over-year)

• Record Service revenues of $8.3 billion, up 6% in Q1 2019 with Branded postpaid service revenues up 8%
• Record Q1 Total revenues of $11.1 billion, up 6% in Q1 2019
• Record Q1 Net income of $908 million, up 35% in Q1 2019
• Record Q1 Diluted earnings per share (“EPS”) of $1.06, up 36% in Q1 2019
• Record Adjusted EBITDA⁽¹⁾ of $3.3 billion, up 11% in Q1 2019
• Strong Net cash provided by operating activities of $1.4 billion, up 81% in Q1 2019 due to higher Net income and lower net cash outflows from changes in working capital
• Free Cash Flow⁽¹⁾ of $618 million, down 7% in Q1 2019 due to accelerated capital expenditures and the impact of merger-related costs

Industry Leading Network Performance

• 99% of Americans now covered with a 4G LTE network that is second to none
• Fastest combined average of download and upload speeds for 21 quarters in a row
• Aggressive deployment of 600 MHz using 5G ready equipment, now reaching nearly 3,500 cities and towns
• On track to have the first nationwide 5G network available next year

Continued Strong Outlook for 2019

• Branded postpaid net additions of 3.1 to 3.7 million, up from prior guidance of 2.6 to 3.6 million
• Net income is not available on a forward-looking basis⁽²⁾
• Adjusted EBITDA target of $12.7 to $13.2 billion, which includes leasing revenues of $0.6 to $0.7 billion⁽¹⁾
• Cash purchases of property and equipment, excluding capitalized interest of approximately $400 million, of $5.4 to $5.7 billion and cash purchases of property and equipment, including capitalized interest, of $5.8 to $6.1 billion
• Three-year compound annual growth rate ("CAGR") from FY 2016 to FY 2019 for Net cash provided by operating activities, excluding payments for merger-related costs, is expected to be at 32% to 35%, up from prior guidance of 17% to 21% driven primarily by improvements in the contractual terms of factoring agreements which led to an accounting geography change but do not impact overall cash flow
• Three-year CAGR from FY 2016 to FY 2019 for Free Cash Flow, excluding payments for merger-related costs, is unchanged at 46% to 48%⁽¹⁾

• Adjusted EBITDA and Free Cash Flow are non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations for these non-GAAP financial measures to the most directly comparable financial measures are provided in the Reconciliation of Non-GAAP Financial Measures to GAAP Financial Measures tables.
• We are not able to forecast Net income on a forward-looking basis without unreasonable efforts due to the high variability and difficulty in predicting certain items that affect GAAP Net income including, but not limited to, Income tax expense, stock-based compensation expense and Interest expense. Adjusted EBITDA should not be used to predict Net income as the difference between the two measures is variable.

BELLEVUE, Wash. – April 25, 2019 – T-Mobile US, Inc. (NASDAQ: TMUS) reported another record quarter in Q1 2019, with customer growth that accelerated year-over-year, all-time record-low postpaid phone churn, and record first quarter financials. The Un-carrier is off to a fast start to the year, delivering record-high Service revenues, record Q1 Net income and record Adjusted EBITDA - all while expecting to lead the industry in postpaid phone growth for the 21st consecutive quarter. This is further proof that doing right by customers is also good for business.

T-Mobile continues to give more value to customers without asking more from them, and customers responded once again this quarter. Q1 marks the 24th quarter in a row where T-Mobile delivered greater than 1 million total customer net additions, and another quarter with customer growth that accelerated year-over-year. The company also posted postpaid phone churn of 0.88% - an all-time record low for T-Mobile.

Investments that began years ago in new geographies, new customer segments and customer care continue to fuel T-Mobile’s momentum. The company continued to see strong response from new customer segments and rate plans, including T-Mobile for Business. Customer care continues to contribute to the strong results with T-Mobile’s Team of Experts continuing to drive record high levels of customer satisfaction while delivering operational efficiencies. T-Mobile isn’t stopping there and continues to make investments in future growth.

“Our results speak for themselves and our business continues to fire on all cylinders! Record Service revenues, record Q1 Net income and record Adjusted EBITDA - all while we continue to share the story and lay out the facts that our game changing merger with Sprint will be a win for consumers,” said John Legere, CEO of T-Mobile. “We’re off to a fast start in 2019 with customer growth that accelerated year-over-year, record low churn and we expect to lead the industry in postpaid phone growth. We’re executing on our business plan and our guidance shows that we expect our momentum to continue.”

For the full release and Fact Book, go to the T-Mobile Investor Relations page.