T-Mobile (NASDAQ: TMUS) reported Q1 EPS of $1.06, $0.14 better than the analyst estimate of $0.92. Revenue for the quarter came in at $11.1 billion versus the consensus estimate of $10.99 billion.

• 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)

“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 earnings history and earnings-related data on T-Mobile (TMUS) click here.