United States

Customer development

Customers

At March 31, 2025, the United States operating segment (T‑Mobile US) had 130.9 million customers, compared to 129.5 million customers at December 31, 2024. Net customer additions were 1.4 million in the first quarter of 2025, compared to 1.2 million in the first quarter of 2024 due to the factors described below.

Postpaid net customer additions were 1.3 million in the first quarter of 2025, compared to 1.2 million in the first quarter of 2024. Postpaid net customer additions increased primarily from higher postpaid other net customer additions, partially offset by lower postpaid phone net customer additions. Postpaid other net additions increased primarily due to higher net additions from other connected devices (including SyncUP and IoT), higher net additions from mobile internet devices and higher net additions from High Speed Internet. This increase was partially offset by increased deactivations from a growing customer base and lower net additions from wearables. Postpaid phone net customer additions decreased primarily due to higher churn, primarily driven by the temporary impact of current year rate plan optimizations, increased deactivations from a growing customer base and lower prepaid to postpaid migrations. This decrease was partially offset by higher gross additions. High Speed Internet net customer additions included in postpaid other net customer additions were 387 thousand and 346 thousand in the first quarter of 2025 and 2024, respectively.

Prepaid net customer additions were 45 thousand in the first quarter of 2025, compared to losses of 48 thousand in the first quarter of 2024. The increase was primarily driven by higher net additions following the Ka’ena Acquisition and lower prepaid to postpaid migrations, partially offset by continued moderation of prepaid industry growth. High Speed Internet net customer additions included in prepaid net customer additions and losses were 37 thousand and 59 thousand in the first quarter of 2025 and 2024, respectively.

Development of operations

Revenue, service revenue

Total revenue for the United States operating segment of EUR 19.8 billion in the first quarter of 2025 increased by 9.9 %, compared to EUR 18.0 billion in the first quarter of 2024. In U.S. dollars, T‑Mobile US’ total revenue increased by 6.6 % during the same period. Total revenue increased primarily due to higher service and equipment revenues. The components of these changes are described below.

Service revenues increased in the first quarter of 2025 by 8.5 % to EUR 16.1 billion. In U.S. dollars, T‑Mobile US’ service revenues increased by 5.1 % during the same period. This increase resulted from higher postpaid revenues, primarily due to higher postpaid Average Revenue per Account (ARPA) and higher average postpaid accounts. In addition, service revenues increased from higher prepaid revenues. Prepaid revenues increased primarily due to higher average prepaid customers, primarily from the prepaid customers acquired through the Ka’ena Acquisition, partially offset by lower prepaid Average Revenue per User (ARPU). The increase in service revenues was partially offset by lower wholesale and other service revenues, primarily from lower MVNO revenues, including the impact from the Ka’ena Acquisition and lower DISH and TracFone MVNO revenues and lower Affordable Connectivity Program revenues.

Equipment revenues increased in the first quarter of 2025 primarily from an increase in device sales revenue, primarily from higher average revenue per device sold, net of promotions. The increase in average revenue per device sold, net of promotions was primarily driven by an increase in the high-end phone mix, including the impact of higher postpaid device upgrades and lower Assurance Wireless device sales. The increase in equipment revenues was also driven by an increase in liquidation revenue, primarily due to an increase in the high-end phone mix and a higher number of liquidated devices.

Other revenues were essentially flat.

Adjusted EBITDA AL, EBITDA AL

In euros, adjusted EBITDA AL increased by 10.0 % to EUR 7.6 billion in the first quarter of 2025, compared to EUR 6.9 billion in the first quarter of 2024. The adjusted EBITDA AL margin was 38.5 % in the first quarter of 2025 and 2024. In U.S. dollars, adjusted EBITDA AL increased by 6.6 % during the same period. Adjusted EBITDA AL increased primarily due to higher service revenues and higher equipment revenues, as discussed above. This increase was partially offset by higher equipment costs, primarily from higher average cost per device sold, primarily driven by an increase in the high-end phone mix, including the impact of higher postpaid device upgrades and lower Assurance Wireless device sales. The increase in adjusted EBITDA AL was also partially offset by an increase in liquidation costs, primarily due to an increase in the high-end phone mix and a higher number of liquidated devices, and higher payroll and benefit related expenses.

EBITDA AL in the first quarter of 2025 included special factors of EUR 13 million compared to EUR ‑130 million in the first quarter of 2024. The change in special factors was primarily due to lower Sprint Merger-related costs and legal-related insurance recoveries recognized in the first quarter of 2025 related to the August 2021 cyberattack. Overall, EBITDA AL increased by 12.3 % to EUR 7.6 billion in the first quarter of 2025, compared to EUR 6.8 billion in the first quarter of 2024, primarily due to the factors described above, including special factors.

Profit/loss from operations (EBIT)

EBIT increased by 22.8 % to EUR 4.9 billion in the first quarter of 2025, compared to EUR 4.0 billion in the first quarter of 2024. In U.S. dollars, EBIT increased by 19.1 % during the same period primarily due to higher EBITDA AL. In U.S. dollars, depreciation, amortization and impairment losses decreased by 4.9 % in the same period primarily due to higher depreciation expense from the acceleration of certain technology assets in the prior year.

Cash capex (before spectrum investment), cash capex

Cash capex (before spectrum investment) decreased by 3.9 % to EUR 2.3 billion in the first quarter of 2025, compared to EUR 2.4 billion in the first quarter of 2024. In U.S. dollars, cash capex (before spectrum investment) decreased by 6.1 % during the same period due to a decrease in purchases of property and equipment, primarily due to increased capital efficiencies from accelerated investments in the T‑Mobile US nationwide 5G network in previous years.

Cash capex decreased by 3.5 % to EUR 2.4 billion in the first quarter of 2025, compared to EUR 2.5 billion in the first quarter of 2024. In U.S. dollars, cash capex decreased by 5.7 % during the same period primarily due to lower purchases of property and equipment as discussed above.