T-Mobile (NASDAQ: TMUS) reported Q2 EPS of $0.09, $0.02 better than the analyst estimate of $0.07. Revenue for the quarter came in at $17.7 billion versus the consensus estimate of $17.61 billion.

Industry-Leading Customer Growth and Sprint Merger Result in Overtaking AT&T as #2 Wireless Provider

• 1,245,000 total net additions, best in industry
• 1,112,000 postpaid net additions, best in industry
• 253,000 postpaid phone net additions with postpaid phone churn of 0.80%
• 133,000 prepaid net additions with prepaid churn of 2.81%
• 98.3 million total customers at the end of Q2 2020, 2nd most in industry

Strong Financial Results in First Quarter as New T-Mobile

• Total revenues of $17.7 billion and service revenues of $13.2 billion
• Net income(1) of $110 million and diluted earnings per share (“EPS”) of $0.09
• Adjusted EBITDA(1) of $7.0 billion
• Net cash provided by operating activities of $777 million
• Free Cash Flow, excluding gross payments for the settlement of interest rate swaps(1) related to merger financing of $1.4 billion

“Surpassing AT&T to become #2 was a huge milestone to kick off Q2, but that was only the beginning! In our first quarter as a combined company, T-Mobile led the industry in total branded customer adds – even in a challenging environment – and there is no doubt that we are THE leading growth company in wireless,” said Mike Sievert, T-Mobile CEO. “Now we’re setting our sights on #1 – in customer choice and customers’ hearts – and we’ll get there by doing ONLY what the Un-carrier can do: offering customers the most advanced 5G network AND the best value while continuing to make big moves that fix customer pain points and disrupt this industry. I’m excited about what’s to come in this new T-Mobile era – we’re just getting started!”

Outlook for H2 2020

• Postpaid net customer additions are expected to be between 1.7 million and 1.9 million.
• Adjusted EBITDA is expected to be in the range of $12.4 billion to $12.7 billion. Our Adjusted EBITDA target includes leasing revenues of $2.4 billion to $2.6 billion.
• Cash purchases of property and equipment, including capitalized interest are expected to be between $6.5 billion and $6.9 billion.
• Merger and integration-related costs are expected to be $800 million to $1 billion before taxes. These costs are excluded from Adjusted EBITDA but will impact Net income and cash flows.
• Net cash provided by operating activities, including payments for merger and integration-related costs, is expected to be in the range of $5.3 billion to $5.7 billion.
• Free Cash Flow, including payments for merger and integration-related costs, is expected to be in the range of $300 million to $500 million. Free Cash Flow guidance does not assume any material net cash inflows from securitization.

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