T-Mobile (NASDAQ: TMUS) reported Q1 EPS of $0.74, $0.17 better than the analyst estimate of $0.57. Revenue for the quarter came in at $19.8 billion versus the consensus estimate of $18.9 billion. Core Adjusted EBITDA of $5.9 billion.

• Total net additions of 1.4 million, best in industry
• Postpaid net additions of 1.2 million, best in industry and raising 2021 guidance
• Postpaid phone net additions of 773 thousand, best in industry

“T-Mobile puts customers at the center of everything we do by giving them the best network, value and experience all at once – and this quarter’s stellar, industry-leading results prove that they’re noticing,” said Mike Sievert, CEO of T-Mobile. “We just keep pushing further ahead of the competition. Our network leadership is fueling customer momentum, delivering merger synergies and expanding our addressable markets for growth. We have so much confidence that we are raising 2021 guidance just one quarter into the year. Our mission is to be the very best at connecting customers to their world and we’re delivering on it.”

aising 2021 Merger Synergies Guidance on Continued Integration Progress

T-Mobile made meaningful progress on integration activities, ending the quarter with approximately 20 percent of Sprint customers moved to the T-Mobile network and approximately 50 percent of Sprint customer traffic now carried on the T-Mobile network, twice as much as last quarter. The company also began mapping Sprint customers to T-Mobile rate plans, bringing customers one step closer to the full Un-carrier experience and setting up a streamlined billing system transition in the future.

Based on the continued strength of its execution, the company expects Merger synergies to be $2.8 billion to $3.1 billion in 2021, more than doubling the $1.3 billion delivered in 2020 and an increase from its prior guidance of $2.7 billion to 3.0 billion.

• Approximately $1.35 billion to $1.5 billion of sales, general, and administrative (SG&A) synergies achieved through SG&A expense reductions
• Approximately $450 million to $600 million of network synergies achieved through cost of service expense reductions
• Approximately $1 billion of network synergies related to avoided costs from new site builds

As announced at its recent Analyst Day, T-Mobile expects the total net present value of Merger synergies to be more than $70 billion – up more than 60 percent from the original Merger guidance of $43 billion – as the company is unlocking synergies bigger and faster than expected and achieving a lower weighted average cost of capital. The company expects total run rate cost synergies to reach approximately $7.5 billion per year – up 25 percent from the original Merger guidance of $6 billion – largely driven by greater efficiencies in site costs and marketing expenses, along with additional information technology savings.

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