T-Mobile US, Inc.

Following open remarks, the earnings call will be open for questions via the conference line by pressing star followed by one and via Twitter by sending a tweet to at T-Mobile IR or at Mike Seifert using hashtag TMUS. I would now like to turn the conference over to Mr. Judd Henry, Senior Vice President and Head of Investor Relations for T-Mobile US. Please go ahead, sir.

All right. Welcome to T-Mobile's second quarter 2022 earnings call. Joining me on the call today are Mike Sievert, our president and CEO, Peter Oswaldic, our CFO, as well as other members of the senior leadership team. During this call, we'll make forward-looking statements, which involve a number of risks and uncertainties that may cause actual results to differ materially from our forward-looking statements. We provide a comprehensive list of risk factors in our SEC filings, which I encourage you to review. Our earnings release, investor fact book, and other documents related to the quarter, as well as reconciliations between our GAAP and non-GAAP metrics, can be found on the quarterly results section of the investor relations website. Also, we're in the quiet period for auction 108, so we cannot discuss or comment on anything related to the 2.5 gigahertz licenses. And with that, let me turn the call over to Mike.

Okay, thanks, Judd. Good morning, everybody. Well, you can see if you're watching us live on the web stream, we've got most of our senior team here in New York City today, and we are here to share our Q2 results, and I am extremely proud of our team for delivering another quarter of great results while completing major integration milestones. Q2 was another strong quarter of industry-leading growth for us in customers, post-pay service revenues, and EBITDA. And based on our momentum, we're raising our full year guidance across the board again. This just shows that the un-carrier playbook, putting customers first and providing them with the best value and the best network, continues to work in a competitive climate and in the changing macroeconomic environment. Before I go into our results, I do want to take a moment to acknowledge this challenging economic climate for consumers and businesses. and what T-Mobile's doing to help customers stay connected. Inflation has been dominating headlines and dinner table conversations. It's a reality that millions of American families are facing as prices every day for essentials are skyrocketing all around them. That's why we did what the un-carrier does best with three big moves last quarter to help customers when they need it most. Prioritizing customers' needs is exactly what continues to fuel our growth. Others in the industry notified their customers that their already overpriced bills are going up when they could least afford it. Naturally, some have asked, when will T-Mobile raise its rates? Well, building on our proud history as the un-carrier, our answer is that we're not. Instead, we introduced price lock. We're standing by our commitment to customers and those who switch to T-Mobile that we won't raise the price of their rate plans. We're here to help broadband customers across the country as well. With our recent launch of Internet Freedom, broadband customers are some of the least satisfied in America. The fees, the contracts, the price hikes, the terrible customer service, it's all ridiculous. And it looks a lot like the wireless industry a decade ago. But it's all changing because we're making it easy for customers to break up with big Internet, lock in their price, and finally feel appreciated. And we made T-Mobile business internet available nationwide, which makes T-Mobile the first and only nationwide internet provider for business. And third, we saw another opportunity to help customers as travel is on the rebound. But like everything else, travel has become more expensive and more complicated. So T-Mobile launched Coverage Beyond to help people get back out there and save money while doing it. We've got customers covered across the U.S. on their airline flights, on the road, and in more than 210 countries and destinations. This is what the un-carrier is all about. chasing down customer pain points and smashing them. And right now, with this economy, there are a lot of pain points out there. And you know what? This strategy works again and again. We delivered another industry-leading quarter of both customer and financial growth. In fact, we posted a record 380,000 postpaid account net ads, the highest in company history. and the highest reported in the industry yet again. As I've said before, this measure of total billing relationships is a strong barometer that we're winning the switching decisions in this industry. I know the competitive market trends are top of mind, and here's what we saw in Q2. Postpaid switching activity increased year over year, and we benefited from more than our fair share of those switching decisions. Importantly, our network and brand are consistently attracting the industry's best customers, driving the prime mix of our customer base to an all-time high. And we delivered our highest ever Q2 post-paid net additions with an industry-best 1.7 million, more than AT&T and Verizon combined again. This includes 723,000 post-paid phone net ads. our postpaid phone churn dropped 13 basis points sequentially to 0.80. And we were the only wireless service provider to improve year over year. In fact, delivering lower churn than Verizon for the first time ever on a combined basis, including Sprint. The fact that our all-in churn, including Sprint, is trending so strongly today just two years out from our merger, shows our team's fantastic progress, and it is exactly what we told you would happen. Okay, let's talk about high-speed internet, where our team delivered 560,000 net additions. I'm pretty confident that we'll see T-Mobile as the fastest-growing broadband provider in the industry for the third consecutive quarter, and most likely by a wide margin. Demand continues to build from dissatisfied suburban cable customers to underserved customers in smaller markets and rural areas. I am so excited to see our broadband business hit this pace, which puts us right on track to meet the multi-year ambitions we shared with you last year. We continue to see great customer adoption of Magenta Max, which is helping drive our strong ARPU and ARPA trends. With the trends we're seeing, we now expect postpaid ARPA to be up roughly 3% in 2022. These results reflect our differentiated strategy to unlock growth across smaller markets in rural areas, T-Mobile for business, network seekers in the top 100 markets who hadn't previously considered us, and in new product categories like 5G broadband. They also reflect the strength of our network leadership. As supported by nearly every third party, Recent reports from Ookla and PC Magazine not only recognize T-Mobile for the fastest and most available 5G network, but for the best overall network experience. And OpenSignal recently reported that not only did our average speeds increase yet again, the gap over the competition widened even further despite their C-band deployments. We are winning this race, and as I've been telling you, we plan to stay ahead. And speaking of network, we just hit some major integration milestones. Just over two years since we closed the merger, we have successfully shut down most of the Sprint network. As of the end of the quarter, we had cumulatively decommissioned nearly two-thirds of the 35,000 targeted sites and can now report that we will be substantially complete by the end of Q3 this current quarter. Remarkable work by the team to deliver these milestones ahead even of our recent year-end target and more than a year earlier than our original merger plan. Before I wrap up, I want to touch on cybersecurity following the criminal attack we experienced roughly a year ago. Protecting our customers' data is a top priority for the company, which is why following the attack, we immediately took additional steps to protect our customers. We created a cyber transformation office and engaged some of the world's top experts to help. We're investing hundreds of millions of dollars to enhance our data security tools and capabilities to transform our cybersecurity program. We always knew that there would unfortunately be financial consequences from this attack, and we were pleased to recently reach settlements that will resolve the class actions and most of the consumer claims. Together, we believe these settlements will represent the biggest component of those impacts. These costs were contemplated in our financial guidance, and the amounts are consistent with precedents we've seen in other similar agreements. We're now focused on moving forward as we continue to invest in and enhance our company's cybersecurity. Okay, let me give a quick recap before I hand things over to Peter. I am very pleased with our company's performance and progress against our ambitious multi-year goals. Again this quarter, we outperformed against our plans and again led the industry in net additions of postpaid customers. and growth in postpaid service revenue, core adjusted EBITDA, and cash flows. And as a result, we raised our guidance across the board again. The un-carrier value proposition resonates, and it's so well-tuned to the times. People want the best network, and now more than ever, they want it at the best value from a team that's obsessed with their satisfaction. Our strategy is so simple, but maybe that's why it works. Quarter after quarter works. year after year. Okay, Peter, over to you to talk about our key financial highlights from Q2 and our increased guidance for 2022 in more detail.