T-Mobile Reports Accelerated Customer Growth, All-Time Record-Low Churn, and Best Ever Q1 Financial Results

T-Mobile US, Inc. (NASDAQ: TMUS):

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⁾

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
24^th 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.”

Accelerated Customer Growth

T-Mobile continues to deliver strong customer growth, and Q1 2019 was no
different. We expect to once again lead the industry in branded postpaid
phone customer net additions and capture approximately 88% of industry
growth.

• Total net customer additions were 1.7 million in Q1 2019,
  bringing our total customer count to 81.3 million, and marking the
  24th straight quarter in which T-Mobile generated more than 1 million
  total net customer additions.
• Branded postpaid net customer additions were 1.0 million in Q1
  2019.
• Branded postpaid phone net customer additions were 656,000 in
  Q1 2019, up 39,000 from Q1 2018, and Q1 2019 is expected to be the
  21st consecutive quarter in which T-Mobile leads the industry in this
  category. Branded postpaid phone net customer additions increased
  year-over-year primarily due to record-low churn.
• Branded postpaid other net customer additions were 363,000 in
  Q1 2019 primarily due to continued strength in gross customer
  additions driven by wearables.
• Branded postpaid phone churn was a record low of 0.88% in Q1
  2019, down 19 basis points year-over-year. This improvement was
  primarily due to increased customer satisfaction and loyalty from
  ongoing improvements to network quality, industry-leading customer
  service and the overall value of our offerings.
• Branded prepaid net customer additions were 69,000 in Q1 2019,
  down year-over-year primarily due to continued promotional activities
  in the marketplace, partially offset by lower churn.
• Branded prepaid churn was 3.85% in Q1 2019, down 9 basis points
  year-over-year.

Strong Financial Performance

T-Mobile’s record financial performance in Q1 2019 proves that taking
care of customers is also good for stockholders. The Company continues
to successfully translate customer growth into expected industry-leading
service and total revenue growth. In Q1, the Un-carrier delivered record
service revenues of $8.3 billion, record Q1 Net income of $908 million
and record Adjusted EBITDA of $3.3 billion.

The following discussion is for the three months ended March 31,
2019, compared to the same period in 2018 unless otherwise stated.

• Total service revenues increased 6% to a record-high of $8.3
  billion in Q1 2019. These results represent our best quarterly
  performance ever and we expect to lead the industry for the 20th
  consecutive quarter in year-over-year service revenue percentage
  growth. Branded postpaid revenues increased 8% year-over-year.
• Total revenues increased 6% to $11.1 billion in Q1 2019 driven
  by growth in both Service revenues and Equipment revenues.
• Branded postpaid phone Average Revenue per User (ARPU) decreased
  to $46.07 in Q1 2019, down 1.3%. The decrease was primarily due to a
  reduction in regulatory program revenues from the continued adoption
  of tax inclusive plans, a reduction in certain non-recurring charges,
  the growing success of new customer segments and rate plans, including
  T-Mobile for Business, and the impact of the ongoing growth in our
  Netflix offering, partially offset by higher premium services revenue
  and a net reduction in promotional activities. For 2019 as a whole, we
  still expect ARPU to be generally stable within a range from plus 1%
  to minus 1%.
• Branded prepaid ARPU decreased to $37.65 in Q1 2019, down 3.2%,
  primarily due to dilution from promotional rate plans and growth in
  our Amazon Prime offering, partially offset by certain non-recurring
  charges.
• Net income increased 35% to $908 million and EPS increased 36%
  to $1.06 in Q1 2019 primarily due to higher Operating income and lower
  Interest expense. The negative impact from merger-related costs on Net
  income and EPS was $93 million and $0.11, respectively.
• Adjusted EBITDA increased 11% to a record $3.3 billion in Q1
  2019, primarily due to higher Service revenues and effective cost
  control. Excluded from Adjusted EBITDA were $113 million of
  merger-related costs.
• Cash purchases of property and equipment increased 41% to $1.9
  billion in Q1 2019 including capitalized interest of $118 million. The
  increase was primarily due to the deployment of low band 600 MHz
  spectrum, which is also laying the groundwork for the introduction of
  our 5G network in the second half of 2019.
• Net cash provided by operating activities increased 81% to $1.4
  billion in Q1 2019. The increase primarily resulted from higher Net
  income and lower net cash outflows from changes in working capital.
• Free Cash Flow decreased 7% to $618 million in Q1 2019. Higher
  Cash purchases of property and equipment and lower Proceeds related to
  our deferred purchase price from securitization transactions were
  partially offset by higher Net cash provided by operating activities.
  Excluding the impact of payments for merger-related costs on Free Cash
  Flow of $34 million in Q1 2019, Free Cash Flow was $652 million.

Industry Leading Network Performance

We continue to increase and expand the coverage and capacity of our
network to better serve our customers. 99% of Americans are covered by
our 4G LTE network, enabling a network experience that is second to
none. T-Mobile has delivered the fastest combined average of download
and upload speeds for 21 quarters in a row. Our rapid deployment of LTE
in 600 MHz provides customers with even better coverage and sets the
stage for the first nationwide standards-based 5G network in 2020.
Highlights from Q1 2019 included:

• 5G update. T-Mobile is building the foundation for its
  standards-based 5G network across the U.S. in 2019, utilizing both 600
  MHz spectrum and millimeter wave spectrum. We expect to have the first
  nationwide 5G network in 2020. We plan to launch our 5G network on 600
  MHz as soon as we have compatible smartphones in the second half of
  this year.
• Clearing and deploying 600 MHz spectrum. At the end of Q1 2019,
  T-Mobile owned a nationwide average of 31 MHz of 600 MHz low band
  spectrum. As of March 31, 2019, we had cleared 140 million POPs and we
  expect to clear spectrum covering approximately 280 million POPs by
  year-end 2019. T-Mobile continues its aggressive deployment of LTE on
  600 MHz spectrum, using 5G ready equipment, with nearly one million
  square miles already lit up covering nearly 3,500 cities and towns in
  44 states and Puerto Rico. Combining 600 MHz spectrum and 700 MHz
  spectrum, we have deployed low band spectrum to 304 million POPs. We
  now have 40 devices compatible with 600 MHz spectrum, including the
  latest iPhone generation.

Continued Strong 2019 Outlook

We expect postpaid net customer additions between 3.1 and 3.7 million in
2019, up from prior guidance of 2.6 to 3.6 million.

Net income is not available on a forward-looking basis.

Adjusted EBITDA is expected to be between $12.7 and $13.2 billion in
2019, unchanged from prior guidance. Our Adjusted EBITDA target includes
leasing revenues of $0.6 to $0.7 billion, also unchanged from prior
guidance.

Cash purchases of property and equipment, excluding capitalized interest
of approximately $400 million, are expected to be between $5.4 and $5.7
billion and cash purchases of property and equipment, including
capitalized interest, are expected to be between $5.8 and $6.1 billion
in 2019, both unchanged from prior guidance. Cash purchases of property
and equipment in 2019 include expenditures for 5G and 600 MHz deployment.

Net cash provided by operating activities three-year CAGR from full-year
2016 to full-year 2019, excluding payments for merger-related costs, is
expected to be between 32% and 35%, up from the prior range of 17% to
21%, driven primarily by improvements in the contractual terms of
factoring agreements which led to an accounting geography change with
the “Proceeds related to beneficial interests in securitization
transactions” line in the cash flow statement but do not impact overall
Free Cash Flow.

Three-year CAGR guidance (2016 – 2019) for Free Cash Flow, excluding
payments for merger-related costs, is unchanged at 46% to 48%.

Financial Results

For more details on T-Mobile’s Q1 2019 financial results, including the
Investor Factbook with detailed financial tables and reconciliations of
certain historical non-GAAP measures disclosed in this release to the
most comparable measures under GAAP, please visit T-Mobile US, Inc.’s
Investor Relations website at http://investor.t-mobile.com.

T-Mobile Social Media

Investors and others should note that the Company announces material
financial and operational information to its investors using its
investor relations website, press releases, SEC filings and public
conference calls and webcasts. The Company also intends to use the
@TMobileIR Twitter account (https://twitter.com/TMobileIR)
and the @JohnLegere Twitter (https://twitter.com/JohnLegere),
Facebook and Periscope accounts, which Mr. Legere also uses as a means
for personal communications and observations, as means of disclosing
information about the Company and its services and for complying with
its disclosure obligations under Regulation FD. The information we post
through these social media channels may be deemed material. Accordingly,
investors should monitor these social media channels in addition to
following our press releases, SEC filings and public conference calls
and webcasts. The social media channels that the Company intends to use
as a means of disclosing the information described above may be updated
from time to time as listed on the Company’s investor relations website.

About T-Mobile US, Inc.

As America’s Un-carrier, T-Mobile US, Inc. (NASDAQ: TMUS) is redefining
the way consumers and businesses buy wireless services through leading
product and service innovation. Our advanced nationwide 4G LTE network
delivers outstanding wireless experiences to 81.3 million customers who
are unwilling to compromise on quality and value. Based in Bellevue,
Washington, T-Mobile US provides services through its subsidiaries and
operates its flagship brands, T-Mobile and Metro by T-Mobile. For more
information, please visit http://www.t-mobile.com
or join the conversation on Twitter using $TMUS.

Q1 2019 Earnings Call, Livestream and Webcast
Access Information

Access via Phone (audio only):

Please plan on accessing the earnings call ten minutes prior to the
scheduled start time.

Access via Social Media:

The @TMobileIR Twitter account will live-tweet the earnings call.

Submit Questions via Twitter:

Access via Webcast:

The earnings call will be broadcast live via our Investor Relations
website at http://investor.t-mobile.com.
A replay of the earnings call will be available for two weeks starting
shortly after the call concludes and can be accessed by dialing
888-203-1112 (toll free) or +1 719-457-0820 (international). The
passcode required to listen to the replay is 9958066.

To automatically receive T-Mobile financial news by e-mail, please visit
the T-Mobile Investor Relations website, http://investor.t-mobile.com,
and subscribe to E-mail Alerts.

Forward-Looking Statements

This communication includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. All
statements other than statements of historical fact, including
information concerning T-Mobile US, Inc.’s future results of operations,
are forward-looking statements. These forward-looking statements are
generally identified by the words “anticipate,” “believe,” “estimate,”
“expect,” “intend,” “may,” “could,” or similar expressions.
Forward-looking statements are based on current expectations and
assumptions, which are subject to risks and uncertainties and may cause
actual results to differ materially from the forward-looking statements.
Important factors that could affect future results and cause those
results to differ materially from those expressed in the forward-looking
statements include, among others, the following: the failure to obtain,
or delays in obtaining, required regulatory approvals for the merger
(the “Merger”) with Sprint Corporation (“Sprint”), pursuant to the
Business Combination Agreement with Sprint and other parties therein
(the “Business Combination Agreement”) and the other transactions
contemplated by the Business Combination Agreement (collectively, the
“Transactions”), and the risk that such approvals may result in the
imposition of conditions that could adversely affect the combined
company or the expected benefits of the Transactions, or the failure to
satisfy any of the other conditions to the Transactions on a timely
basis or at all; the occurrence of events that may give rise to a right
of one or both of the parties to terminate the Business Combination
Agreement; adverse effects on the market price of our common stock or on
our or Sprint’s operating results because of a failure to complete the
Merger in the anticipated timeframe or at all; inability to obtain the
financing contemplated to be obtained in connection with the
Transactions on the expected terms or timing or at all; the ability of
us, Sprint and the combined company to make payments on debt or to repay
existing or future indebtedness when due or to comply with the covenants
contained therein; adverse changes in the ratings of our or Sprint’s
debt securities or adverse conditions in the credit markets; negative
effects of the announcement, pendency or consummation of the
Transactions on the market price of our common stock and on our or
Sprint’s operating results, including as a result of changes in key
customer, supplier, employee or other business relationships;
significant costs related to the Transactions, including financing
costs, and unknown liabilities of Sprint or that may arise; failure to
realize the expected benefits and synergies of the Transactions in the
expected timeframes or at all; costs or difficulties related to the
integration of Sprint’s network and operations into our network and
operations; the risk of litigation or regulatory actions related to the
Transactions; the inability of us, Sprint or the combined company to
retain and hire key personnel; the risk that certain contractual
restrictions contained in the Business Combination Agreement during the
pendency of the Transactions could adversely affect our or Sprint’s
ability to pursue business opportunities or strategic transactions;
adverse economic, political or market conditions in the U.S. and
international markets; competition, industry consolidation, and changes
in the market for wireless services, which could negatively affect our
ability to attract and retain customers; the effects of any future
merger, investment, or acquisition involving us, as well as the effects
of mergers, investments, or acquisitions in the technology, media and
telecommunications industry; challenges in implementing our business
strategies or funding our operations, including payment for additional
spectrum or network upgrades; the possibility that we may be unable to
renew our spectrum licenses on attractive terms or acquire new spectrum
licenses at reasonable costs and terms; difficulties in managing growth
in wireless data services, including network quality; material changes
in available technology and the effects of such changes, including
product substitutions and deployment costs and performance; the timing,
scope and financial impact of our deployment of advanced network and
business technologies; the impact on our networks and business from
major technology equipment failures; breaches of our and/or our
third-party vendors’ networks, information technology and data security,
resulting in unauthorized access to customer confidential information;
natural disasters, terrorist attacks or similar incidents; unfavorable
outcomes of existing or future litigation; any changes in the regulatory
environments in which we operate, including any increase in restrictions
on the ability to operate our networks and changes in data privacy laws;
any disruption or failure of our third parties’ or key suppliers’
provisioning of products or services; material adverse changes in labor
matters, including labor campaigns, negotiations or additional
organizing activity, and any resulting financial, operational and/or
reputational impact; changes in accounting assumptions that regulatory
agencies, including the Securities and Exchange Commission (“SEC”), may
require, which could result in an impact on earnings; changes in tax
laws, regulations and existing standards and the resolution of disputes
with any taxing jurisdictions; the possibility that the reset process
under our trademark license results in changes to the royalty rates for
our trademarks; the possibility that we may be unable to adequately
protect our intellectual property rights or be accused of infringing the
intellectual property rights of others; our business, investor
confidence in our financial results and stock price may be adversely
affected if our internal controls are not effective; the occurrence of
high fraud rates related to device financing, credit card, dealers, or
subscriptions; and interests of a majority stockholder may differ from
the interests of other stockholders. Given these risks and
uncertainties, readers are cautioned not to place undue reliance on such
forward-looking statements. We undertake no obligation to revise or
publicly release the results of any revision to these forward-looking
statements, except as required by law.

Important Additional Information

In connection with the Transactions, T-Mobile US, Inc. (“T-Mobile”) has
filed a registration statement on Form S-4 (File No. 333-226435), which
contains a joint consent solicitation statement of T-Mobile and Sprint
Corporation (“Sprint”), that also constitutes a prospectus of T-Mobile
(the “joint consent solicitation statement/prospectus”), and each party
will file other documents regarding the Transactions with the SEC. The
registration statement on Form S-4 was declared effective by the SEC on
October 29, 2018, and T-Mobile and Sprint commenced mailing the joint
consent solicitation statement/prospectus to their respective
stockholders on October 29, 2018. INVESTORS AND SECURITY HOLDERS ARE
URGED TO READ THE JOINT CONSENT SOLICITATION STATEMENT/PROSPECTUS AND
OTHER RELEVANT DOCUMENTS FILED WITH THE SEC WHEN THEY BECOME AVAILABLE
BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. Investors and security
holders may obtain these documents free of charge from the SEC’s website
or from T-Mobile or Sprint. The documents filed by T-Mobile may be
obtained free of charge at T-Mobile’s website, at www.t-mobile.com,
or at the SEC’s website, at www.sec.gov,
or from T-Mobile by requesting them by mail at T-Mobile US, Inc.,
Investor Relations, 1 Park Avenue, 14th Floor, New York, NY 10016, or by
telephone at 212-358-3210. The documents filed by Sprint may be obtained
free of charge at Sprint’s website, at www.sprint.com,
or at the SEC’s website, at www.sec.gov,
or from Sprint by requesting them by mail at Sprint Corporation,
Shareholder Relations, 6200 Sprint Parkway, Mailstop KSOPHF0302-3B679,
Overland Park, Kansas 66251, or by telephone at 913-794-1091.

Participants in the Solicitation

T-Mobile and Sprint and their respective directors and executive
officers and other members of management and employees may be deemed to
be participants in the solicitation of consents in respect of the
Transactions. Information about T-Mobile’s directors and executive
officers is available in T-Mobile’s proxy statement dated April 26,
2018, for its 2018 Annual Meeting of Stockholders. Information about
Sprint’s directors and executive officers is available in Sprint’s proxy
statement dated June 26, 2018, for its 2018 Annual Meeting of
Stockholders, and in Sprint’s subsequent Current Report on Form 8-K
filed with the SEC on July 2, 2018. Other information regarding the
participants in the consent solicitation and a description of their
direct and indirect interests, by security holdings or otherwise, is
contained in the joint consent solicitation statement/prospectus.
Investors should read the joint consent solicitation
statement/prospectus carefully before making any voting or investment
decisions. You may obtain free copies of these documents from T-Mobile
or Sprint as indicated above.

No Offer or Solicitation

This communication shall not constitute an offer to sell or the
solicitation of an offer to buy any securities, nor shall there be any
sale of securities in any jurisdiction in which such offer, solicitation
or sale would be unlawful prior to registration or qualification under
the securities laws of any such jurisdiction. No offering of securities
shall be made except by means of a prospectus meeting the requirements
of Section 10 of the U.S. Securities Act of 1933, as amended.

This Press Release includes non-GAAP financial measures. The 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 the non-GAAP financial measures to the most directly
comparable GAAP financial measures are provided below. T-Mobile is 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.

Adjusted EBITDA is reconciled to Net income as follows:

Net debt (excluding Tower obligations)⁽¹⁾ to last twelve
months net income and Adjusted EBITDA ratios are calculated as follows:

Net debt is defined as Short-term debt, Short-term debt to affiliates,
Short-term financing lease liabilities, Long-term debt (excluding tower
obligations), Long-term debt to affiliates, and Financing lease
liabilities less Cash and cash equivalents.

Free Cash Flow is calculated as follows:

Free Cash Flow three-year CAGR⁽¹⁾ is calculated as follows:

The following tables illustrate the calculation of our operating measure
ARPU and reconciles this measure to the related service revenues:

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