United States Customer development (XLS:) Download thousands Mar. 31, 2020 Dec. 31, 2019 ChangeMar. 31, 2020/Dec. 31, 2019% Mar. 31, 2019 ChangeMar. 31, 2020/Mar. 31, 2019% Starting in Q1 2020, T‑Mobile US discontinued reporting of wholesale customers due to the expansion of M2M and Internet of Things (“loT”) products and instead will continue to focus on branded customer reporting. a On July 18, 2019, we entered into an agreement whereby certain T‑Mobile US branded prepaid products will now be offered and distributed by a current MVNO partner. As a result, we included a base adjustment to reduce branded prepaid customers by 616 thousand in the third quarter of 2019. Branded customersa 68,543 67,895 1.0 64,744 5.9 Branded postpaid 47,811 47,034 1.7 43,538 9.8 Branded prepaya 20,732 20,860 (0.6) 21,206 (2.2) Branded customers At March 31, 2020, the United States operating segment (T‑Mobile US) had 68.5 million branded customers, compared to 67.9 million branded customers at December 31, 2019. Net branded customer additions were 0.6 million for the first quarter of 2020, compared to 1.1 million net branded customer additions for the first quarter of 2019, due to the factors described below. Branded postpaid net customer additions were 777 thousand for the first quarter of 2020, compared to 1.0 million branded postpaid net customer additions for the first quarter of 2019. The decrease resulted from lower branded postpaid phone and branded postpaid other net customer additions primarily due to lower gross customer additions impacted by reduced demand from social distancing rules and store closures arising from the coronavirus pandemic, partially offset by lower churn. Branded prepay net customer losses were 128 thousand for the first quarter of 2020, compared to 69 thousand branded prepay net customer additions for the first quarter of 2019. The decrease was primarily due to lower gross customer additions impacted by reduced demand from social distancing rules and store closures arising from the coronavirus pandemic, partially offset by lower churn. Development of operations (XLS:) Download millions of € Q1 2020 Q1 2019 Change Change % FY 2019 TOTAL REVENUE 10,157 9,796 361 3.7 40,420 Profit from operations (EBIT) 1,509 1,376 133 9.7 5,488 EBIT margin % 14.9 14.0 13.6 Depreciation, amortization and impairment losses (2,084) (1,835) (249) (13.6) (7,777) EBITDA 3,593 3,210 383 11.9 13,265 EBITDA AL 2,886 2,580 306 11.9 10,590 Special factors affecting EBITDA (274) (99) (175) n.a. (544) EBITDA (adjusted for special factors) 3,867 3,309 558 16.9 13,809 EBITDA AL (ADJUSTED FOR SPECIAL FACTORS) 3,160 2,679 481 18.0 11,134 EBITDA AL margin (adjusted for special factors) % 31.1 27.3 27.5 CASH CAPEX (1,708) (1,713) 5 0.3 (6,369) Total revenue Total revenue for the United States operating segment of EUR 10.2 billion in the first quarter of 2020 increased by 3.7 percent, compared to EUR 9.8 billion in the first quarter of 2019. In U.S. dollars, T‑Mobile US’ total revenues slightly increased primarily due to an increase in service revenue driven by growth in our average branded customer base from the continued growth in existing and greenfield markets; including the growing success of new customer segments and rate plans such as Unlimited 55+, Military, Business, and Essentials. This increase was partially offset by lower branded postpaid phone Average Revenue per User (ARPU) and a decrease in equipment revenue primarily from a decrease in the number of devices sold, excluding purchased leased devices, resulting from reduced demand from social distancing rules and store closures arising from the coronavirus pandemic and lower average revenue per device sold. EBITDA AL, adjusted EBITDA AL In euros, adjusted EBITDA AL increased by 18.0 percent to EUR 3.2 billion in the first quarter of 2020, compared to EUR 2.7 billion in the first quarter of 2019. Adjusted EBITDA AL margin increased to 31.1 percent in the first quarter of 2020, compared to 27.3 percent in the first quarter of 2019. In U.S. dollars, adjusted EBITDA AL increased by 14.5 percent during the same period. Adjusted EBITDA AL increased due primarily to higher service revenues, as further discussed above, and lower losses on equipment sales. These increases were partially offset by expenses associated with new and modified leases due to network expansion and the launch of our 5G network, higher employee-related costs, higher legal-related expenses, higher bad debt expense primarily due to the estimated macro-economic impacts of the coronavirus pandemic, and a USD 89 million impact from commission costs capitalized and amortized beginning upon the adoption of IFRS 15 on January 1, 2018. EBITDA AL for the first quarter of 2020 included special factors of EUR -274 million compared to special factors of EUR -99 million for the first quarter of 2019. The change in special factors was primarily due to supplemental employee payroll, third-party commissions and cleaning-related expenses associated with the coronavirus pandemic and the Sprint transaction. Overall, EBITDA AL increased by 11.9 percent to EUR 2.9 billion in the first quarter of 2020, compared to EUR 2.6 billion in the first quarter of 2019, due to the factors described above, including special factors. EBIT EBIT increased to EUR 1.5 billion in the first quarter of 2020, compared to EUR 1.4 billion in the first quarter of 2019. In U.S. dollars, EBIT increased by 6.5 percent during the same period primarily driven by higher EBITDA AL. In U.S. dollars, depreciation increased by 10.3 percent primarily driven by network expansion, including the continued deployment of low-band spectrum, including 600 MHz, and the nationwide launch of our 5G network. Cash capex Cash capex was essentially flat in the first quarter of 2020 compared to first quarter of 2019. In U.S. dollars, cash capex decreased by 3.1 percent primarily due to higher capital expenditures in the first quarter of 2019 related to laying the initial groundwork for 5G. schließen Postpaid Customers who pay for communication services after receiving them (usually on a monthly basis). schließen Prepay/prepaid In contrast to postpay contracts, prepay communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations. schließen Service revenues Revenues generated with mobile customers from services (i.e., revenues from voice services – incoming and outgoing calls – and data services), plus roaming revenues, monthly charges, and visitor revenues. schließen 5G New communications standard, which offers data rates in the gigabit range, converges fixed-network and mobile communications, and supports the Internet of Things – rollout starting 2020.