T-Mobile US, Inc.

Following opening remarks, the earnings call will be open for questions via the conference line by pressing 1, followed by the 4, and via Twitter by sending a tweet to at T-Mobile IR or at Mike Siebert using cash tag TMUS. I would now like to turn the conference over to Mr. Judd Henry, Senior Vice President, Head of Investor Relations for T-Mobile US. Please go ahead, sir.

All right, welcome to T-Mobile's first quarter 2023 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 will make forward-looking statements which involve 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 factbook, and other documents related to our results, as well as reconciliations between GAAP and non-GAAP results discussed on this call, can be found in the quarterly results section of the Investor Relations website. With that, I'll turn it over to Mike.

Okay. Thanks, Judd. Hi, everybody. Well, welcome to the call. And as you can see, we're coming to you live from Bellevue, Washington at our headquarters. And I'm here gathered with a great group of our senior leadership team, As we share with you some terrific results that we are posting today to kick off 2023. And I'll start by saying our results for Q1 continue to demonstrate that no matter the competitive environment, our unique formula of offering the best network and the best value continues to produce best in class outcomes. We again led the industry in postpaid and broadband customer net ads while continuing to deliver the best profitability growth. And our consistent focus on reliably translating customer growth into industry-leading postpaid service revenue growth and unlocking substantial cash flow gives us the confidence to raise our full-year guidance just one quarter into the new year. Now, I'll also say Q1 was a quarter of celebration at T-Mobile. I am so proud of how our now 10-year history of more than 20 un-carrier moves have transformed this wireless industry. and more recently broadband for the benefit of customers. And as you often hear us say, we won't stop. So we announced last week our latest un-carrier move with Phone Freedom, a move aimed to free customers and other wireless providers locked into those three-year contracts while they're subjected to relentless pricing changes and gotchas. We continue to make it easier for customers to come to T-Mobile and switch to T-Mobile for peace of mind, knowing that with price lock, we won't raise their price for talk, text, and data. And now with new and two, a part of phone freedom, they'll be upgrade ready in two years because three years is too long to force customers to wait. Here's kind of a crazy sort of fact to get your head around. AT&T reported the lowest postpaid phone churn in the industry this quarter. And yet quantitative research data says that their customers have the highest self-reported likelihood of switching away. Their customers report being almost 50% more likely to switch than Verizon's or T-Mobile's customers. The lowest churn, but the highest apparent dissatisfaction. And to me, that means one thing. Their customers are trapped, and we're here to solve it. And that's what our latest un-carrier move is all about. That's what phone freedom is all about. And it's the way we've been designing our groundbreaking un-carrier moves for a full decade now. And as you know, we hit another milestone this month, the three-year anniversary of our merger. We're wrapping up an integration that many have deemed, and I think we'll conclude that it is, the most successful merger in telecom history. And most of all, we're celebrating what it was always about, the dream we had of leapfrogging from last place in the 4G era to leadership in the 5G era. Smashing the biggest pain point of all by finally giving customers in this industry both the best network and the best value from the same provider. And you know what? We did it. And we did it ahead of schedule, meeting our commitments and unlocking massive value in the process. And yeah, we brought about a new level of competition to this market and a 5G network to America that would not have been possible without this merger. And that makes customers and businesses everywhere the real winners. Speaking of network, another round of results are in, and our team is again celebrating wins as the largest, fastest, and most awarded 5G network, as well as the best overall network for the second quarter in a row, according to Ookla. And this is not just a snapshot in time. It is a durable network lead. And I am confident that Olf and team, in his new role as president of technology, congratulations and thank you for stepping in to lead us. Thank you. Will continue to keep us ahead in this race over the next years with our great spectrum assets in both depth and breadth deployed rapidly. And our rapid execution of our unique process called customer driven coverage and finally continued leadership and implementing advanced technologies such as standalone 5g and multi carrier aggregation. All of these things, importantly, are contributing to the best capital efficiency in our sector. All of these strengths, coupled with our unique opportunity in under-penetrated markets, are what enables a differentiated and profitable growth strategy that separates us from the competition. And you know what? We showed that again in Q1. We added 287,000 postpaid account net additions, the highest reported in the industry once again. And that means we're winning the switching decisions in the market because this looks at it at the account level. and we had postpaid net additions of 1.3 million, more than AT&T and Verizon combined. This included postpaid phone net ads of 538,000. We won a higher share of net ads year over year, even as the industry continues to moderate, just like we predicted we would in previous calls. Our increased share was driven by our strong phone gross ads, as well as being the only national wireless provider to improve postpaid phone churn year over year. Our consistent approach to profitable growth continues to deliver right on and sometimes even above our ambitious plans, and that's even as the competitive landscape continues to shift and evolve. In recent quarters, we've seen cable giving away free first lines that don't, by the way, appear to be incrementally pulling from existing customers and incumbent providers, but definitely are driving their ARPUs down. We've seen AT&T and Verizon significantly outspend us in media advertising. I mean, Verizon alone spent almost 60% more than T-Mobile in Q1. And we continue to see, as I mentioned earlier, others lean into expensive long-term device contract offers to lock up their customers, while T-Mobile was the only one to improve churn year over year and have the lowest upgrade rate. Improving churn, but with the lowest upgrades. That's because our approach is not to slam customers with expensive unwanted upgrade contracts to tie them down for three years. Customers genuinely choose to stay with T-Mobile for the network, for the value proposition, and for the experiences. And you know what? That's how we want it to be. You've heard us say before, our strategy is differentiated and durable because it's driven by taking share in the places where we continue to be under-penetrated relative to the market but where we now have new permission to win. This profitable growth playbook and the momentum we saw in Q1 is exactly what gives us the confidence to raise our postpaid net ad and financial guidance for the year. Perfect example of this, T-Mobile for Business, where we just posted one of our highest ever phone net ad quarters in Q1 with the lowest business phone churn in our history. And we're profitably taking share with more business account net ads and more business phone net ads than Verizon in the quarter. On the consumer side, we're winning with prime network seekers in the top 100 markets who increasingly recognize that T-Mobile offers the best combination of network coverage and capacity for their needs. In fact, our prime customer base hit an all-time high again this quarter. And in smaller markets and rural areas, We're now capturing a wind share of switchers in the upper 30s, and that's in the roughly two-thirds of this geography where we're competing. This is great news because it's showing that our strategy here is very much on track. In addition, we added 523,000 high-speed Internet customers as we have continued to grow our gross ads every quarter since we launched two years ago. I would expect that we added more broadband customers than AT&T, Verizon, Comcast, and Charter combined for the fourth consecutive quarter. And not only did we have the highest net ads, but our focus on profitable growth translated into strong financial performance with core adjusted EBITDA up 9% year over year and free cash flow up over 45%. Our Q1 results We're just the latest example of how we have lots of room to run at T-Mobile. And I'm confident in our ambitions for this year and beyond. One thing you've come to expect from this management team is that we are never satisfied. And you saw that again with our latest un-carrier move to free customers from three-year contracts and introduce new Go 5G plans that offer even more value than before. As proud as I am of what we've accomplished in our 10 years as the un-carrier and in Q1 most recently, I am even more excited about what's ahead for T-Mobile. And I'm so thankful that all of you are on this journey with us. Okay, Peter, over to you to talk about the key financial highlights and our updated guidance for 23.