Telecom Service/Media: AT&T to acquire Time Warner
- US-based telco AT&T’s acquisition of Time Warner will be an industry game changer
- Note growing investment in premium content (a growth driver for ICT ecosystem)
- Focus on CJ E&M’s efforts to improve original content and telcos’ media expansion
Nibc 2016 mba-m fin - true north investments - pptJohn McGlynn
Our Team was selected as one of 25 teams from the 350 applicants to advance to the final round!
Created a Pitch-Book for a hypothetical presentation to AT&T, outlining our current valuation of the firm under multiple valuation techniques, and describing how my team's recommended corporate action fits AT&T's current strategy and increases shareholder value.
This pitch included a detailed valuation of AT&T using a Discounted cash flow approach, Comparable Firms approach, and a Precedent Transactions approach.
Our Corporate Action recommendations were tailored to AT&Ts current strategy. For acquisition recommendations a accretion/ dilution analysis was provided.
Telecom Service/Media: AT&T to acquire Time Warner
- US-based telco AT&T’s acquisition of Time Warner will be an industry game changer
- Note growing investment in premium content (a growth driver for ICT ecosystem)
- Focus on CJ E&M’s efforts to improve original content and telcos’ media expansion
Nibc 2016 mba-m fin - true north investments - pptJohn McGlynn
Our Team was selected as one of 25 teams from the 350 applicants to advance to the final round!
Created a Pitch-Book for a hypothetical presentation to AT&T, outlining our current valuation of the firm under multiple valuation techniques, and describing how my team's recommended corporate action fits AT&T's current strategy and increases shareholder value.
This pitch included a detailed valuation of AT&T using a Discounted cash flow approach, Comparable Firms approach, and a Precedent Transactions approach.
Our Corporate Action recommendations were tailored to AT&Ts current strategy. For acquisition recommendations a accretion/ dilution analysis was provided.
Digital transformation for 2020 and beyondSarhan, Ahmed
The 2017 global telecommunications study has been conducted by EY to monitor and evaluate the evolving views of leaders across the global telecommunications industry.
This latest survey forms part of EY’s ongoing series of global telecommunications studies.
Wireless providers will need to adjust their strategies to accelerate innovation, cement customer relationships and improve operational efficiency to maintain revenue and profit growth.
GSMA Intelligence is the definitive source of global mobile
operator data, analysis and forecasts, and publisher of
authoritative industry reports and research. Our data covers
every operator group, network and MVNO in every country
worldwide – from Afghanistan to Zimbabwe. It is the most
accurate and complete set of industry metrics available,
comprising tens of millions of individual data points, updated
daily.
GSMA Intelligence is relied on by leading operators, vendors,
regulators, financial institutions and third-party industry players,
to support strategic decision-making and long-term investment
planning. The data is used as an industry reference point and is
frequently cited by the media and by the industry itself.
This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, depreciation and amortization, cash flows and personnel-related measures. You should consider them with caution. Such statements are subject to risks and uncertainties, most of which are difficult to predict and are generally beyond Deutsche Telekom’s control. Among the factors that might influence our ability to achieve our objectives are the progress of our workforce reduction initiative and other cost-saving measures, and the impact of other significant strategic, labor or business initiatives, including acquisitions, dispositions and business combinations, and our network upgrade and expansion initiatives. In addition, stronger than expected competition, technological change, legal proceedings and regulatory developments, among other factors, may have a material adverse effect on our costs and revenue development. Further, the economic downturn in our markets, and changes in interest and currency exchange rates, may also have an impact on our business development and the availability of financing on favorable conditions. Changes to our expectations concerning future cash flows may lead to impairment write downs of assets carried at historical cost, which may materially affect our results at the group and operating segment levels. If these or other risks and uncertainties materialize, or if the assumptions underlying any of these statements prove incorrect, our actual performance may materially differ from the performance expressed or implied by forward-looking statements. We can offer no assurance that our estimates or expectations will be achieved. Without prejudice to existing obligations under capital market law, we do not assume any obligation to update forward-looking statements to take new information or future events into account or otherwise.
In addition to figures prepared in accordance with IFRS, Deutsche Telekom also presents non-GAAP financial performance measures, including, among others, EBITDA, EBITDA margin, adjusted EBITDA, adjusted EBITDA margin, adjusted EBIT, adjusted net income, free cash flow, gross debt and net debt. These non-GAAP measures should be considered in addition to, but not as a substitute for, the information prepared in accordance with IFRS. Non-GAAP financial performance measures are not subject to IFRS or any other generally accepted accounting principles. Other companies may define these terms in different ways.
The global telecom service assurance market generated revenue of US$ 5.5 billion in 2020 and is expected to reach US$ 8.1 billion by 2025 with a CAGR of 8.1% in the forecast period. The telecom service assurance market report offers a comprehensive market analysis of the different segments and regions that lets readers make crucial business-related decisions with a wealth of information enclosed in this report. The factor that drives the market of telecom service assurance is increasing number of mobile subscriber base, need for high optimization & increased cost savings, and ability to measure the performance of a service and quality of service. It decreases cost of maintenance. Therefore, to modify an organization and adoption of new technologies and data privacy issues are mainly increasing the demand of telecom service assurance market. The research report offers both qualitative and quantitative information on the global telecom service assurance market. In qualitative terms, the telecom service assurance market report provides insights into numerous factors, such as market determinants, value chain analysis, emerging trends, growth opportunity analysis, porters five-force model analysis and macro-economic factors, segment analysis, regional analysis at a granular level. Similarly, in quantitative terms, the report provides historical and forecast market numbers of telecom service assurance in various segments such as by component, deployment model, enterprise size and operator type at global, regional, and country-level. In addition, the report provides a detailed analysis of the market vendors and their product offerings. The report also covers details of the competitive market environment and includes information on the capabilities and competencies of market vendors.
#COVID19's #Digitization of the #Economy and How C19 Winners Lap the Period. #eCommerce forecasts for '20 - '23 and how those influence digital advertising growth.
Amzn q2 20 learnings and the outlook for its business, retail, and our economythomas paulson
Attached is my latest on why #AMZN will double again over the next few years and what the #Amazon Q2 results suggest about the #retail industry, the #RetailApocalypse, our #economy, and our society.
Observations from Q1 Retailer Earnings and C19 Durable Changesthomas paulson
We studied the earnings results from the 20 largest US retailers that have reported their Q1'20/C-19 period business results. From this we have distilled out what we believe to be the durable changes in consumer behavior and the retail industry.
Attached is my pitch deck for this deal:
30% Premium offered to PINS shareholders for this 1:1 all stock deal. PINS shareholders get 12% of the combined company.
60% EPS-non-GAAP earnings year-3 accretion to PYPL.
Synergies come from bringing PayPal merchants to Pinterest to significantly improve ad coverage, using PayPal user data to improve Pinterest's ad relevance, Pinterest merchants defaulting to PayPal for their customers, new ad formats, and significantly more GMV and TPV as a result of these improvements.
No significant regulatory opposition expected.
PayPal would need to set-up a Chinese-Wall and prohibit Pinterest from using PayPal consumer data to attract consumers to Pinterest. PayPal needs to maintain its merchant independence.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Are you looking to streamline your workflows and boost your projects’ efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, you’re in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part “Essentials of Automation” series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Here’s what you’ll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
We’ll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Don’t miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
Connector Corner: Automate dynamic content and events by pushing a buttonDianaGray10
Here is something new! In our next Connector Corner webinar, we will demonstrate how you can use a single workflow to:
Create a campaign using Mailchimp with merge tags/fields
Send an interactive Slack channel message (using buttons)
Have the message received by managers and peers along with a test email for review
But there’s more:
In a second workflow supporting the same use case, you’ll see:
Your campaign sent to target colleagues for approval
If the “Approve” button is clicked, a Jira/Zendesk ticket is created for the marketing design team
But—if the “Reject” button is pushed, colleagues will be alerted via Slack message
Join us to learn more about this new, human-in-the-loop capability, brought to you by Integration Service connectors.
And...
Speakers:
Akshay Agnihotri, Product Manager
Charlie Greenberg, Host
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. What’s changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Encryption in Microsoft 365 - ExpertsLive Netherlands 2024Albert Hoitingh
In this session I delve into the encryption technology used in Microsoft 365 and Microsoft Purview. Including the concepts of Customer Key and Double Key Encryption.
GDG Cloud Southlake #33: Boule & Rebala: Effective AppSec in SDLC using Deplo...James Anderson
Effective Application Security in Software Delivery lifecycle using Deployment Firewall and DBOM
The modern software delivery process (or the CI/CD process) includes many tools, distributed teams, open-source code, and cloud platforms. Constant focus on speed to release software to market, along with the traditional slow and manual security checks has caused gaps in continuous security as an important piece in the software supply chain. Today organizations feel more susceptible to external and internal cyber threats due to the vast attack surface in their applications supply chain and the lack of end-to-end governance and risk management.
The software team must secure its software delivery process to avoid vulnerability and security breaches. This needs to be achieved with existing tool chains and without extensive rework of the delivery processes. This talk will present strategies and techniques for providing visibility into the true risk of the existing vulnerabilities, preventing the introduction of security issues in the software, resolving vulnerabilities in production environments quickly, and capturing the deployment bill of materials (DBOM).
Speakers:
Bob Boule
Robert Boule is a technology enthusiast with PASSION for technology and making things work along with a knack for helping others understand how things work. He comes with around 20 years of solution engineering experience in application security, software continuous delivery, and SaaS platforms. He is known for his dynamic presentations in CI/CD and application security integrated in software delivery lifecycle.
Gopinath Rebala
Gopinath Rebala is the CTO of OpsMx, where he has overall responsibility for the machine learning and data processing architectures for Secure Software Delivery. Gopi also has a strong connection with our customers, leading design and architecture for strategic implementations. Gopi is a frequent speaker and well-known leader in continuous delivery and integrating security into software delivery.
Neuro-symbolic is not enough, we need neuro-*semantic*Frank van Harmelen
Neuro-symbolic (NeSy) AI is on the rise. However, simply machine learning on just any symbolic structure is not sufficient to really harvest the gains of NeSy. These will only be gained when the symbolic structures have an actual semantics. I give an operational definition of semantics as “predictable inference”.
All of this illustrated with link prediction over knowledge graphs, but the argument is general.
Builder.ai Founder Sachin Dev Duggal's Strategic Approach to Create an Innova...Ramesh Iyer
In today's fast-changing business world, Companies that adapt and embrace new ideas often need help to keep up with the competition. However, fostering a culture of innovation takes much work. It takes vision, leadership and willingness to take risks in the right proportion. Sachin Dev Duggal, co-founder of Builder.ai, has perfected the art of this balance, creating a company culture where creativity and growth are nurtured at each stage.
Securing your Kubernetes cluster_ a step-by-step guide to success !KatiaHIMEUR1
Today, after several years of existence, an extremely active community and an ultra-dynamic ecosystem, Kubernetes has established itself as the de facto standard in container orchestration. Thanks to a wide range of managed services, it has never been so easy to set up a ready-to-use Kubernetes cluster.
However, this ease of use means that the subject of security in Kubernetes is often left for later, or even neglected. This exposes companies to significant risks.
In this talk, I'll show you step-by-step how to secure your Kubernetes cluster for greater peace of mind and reliability.
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...UiPathCommunity
💥 Speed, accuracy, and scaling – discover the superpowers of GenAI in action with UiPath Document Understanding and Communications Mining™:
See how to accelerate model training and optimize model performance with active learning
Learn about the latest enhancements to out-of-the-box document processing – with little to no training required
Get an exclusive demo of the new family of UiPath LLMs – GenAI models specialized for processing different types of documents and messages
This is a hands-on session specifically designed for automation developers and AI enthusiasts seeking to enhance their knowledge in leveraging the latest intelligent document processing capabilities offered by UiPath.
Speakers:
👨🏫 Andras Palfi, Senior Product Manager, UiPath
👩🏫 Lenka Dulovicova, Product Program Manager, UiPath
Dev Dives: Train smarter, not harder – active learning and UiPath LLMs for do...
Update on T-Mobile post Q3
1. 1All rights reserved, Inflection Capital Management, LLC
2021E 2022E 2023E 2024E
Year-End Value $215 $234 $264 $295
TMUS' Path To
2. Thesis & Returns Update on The New T-Mobile
Perspective: All are going well six months into the The New T-Mobile's customer/ systems integration, synergies, network build, and
financials. This significantly mitigates the risks of unexpected problems and adverse unknown-unknowns. Moreover, given the improving
offerings for 5G hardware, indications of strong consumer interest for 5G (per trends in Asia), and a compelling 5G network coverage story
for T-Mobile (100M POPs covered w/ mid-band spectrum by year-end), the time is nearing for T-Mobile to significantly increase their
brand and customer acquisition investment--that is to be the 1H'21. As such, we expect T-Mobile to capture most of the industries growth
over the near- to medium-term. Similar to LQ, analysts and PMs can now more confidently invest given that their forecasts are now more
grounded (given 2 quarters of numbers) and the near-term risks narrowed. Post the release, all sell-side estimates that we observed were
revised higher. Separately, for reference, we have been writing on TMUS since mid-2018 with the view that the Sprint merger would be
approved and that TMUS will disrupt the entire TMT industry with the acquired spectrum and 5G. Our July '20 viewpoint is here. Our
confidence in these views increased with the results from TMUS and across the industry.
2
Key Points:
1) Integration complete and the 5G network build pace ramped-up and rapidly bringing real 5G coverage to the country with
>200M people to have mid-band 5G coverage by T-Mobile by the end of '21.
2) Synergies ahead: $1.2B this year and $2.4B (low-ball guidance) in '21. Synergy target to be steadily raised over the next two years.
3) T-Mobile's Financial model continues to track ahead of consensus and largely in-line with our base-case expectations. However,
we have deflated our Home Run Scenario on our better understanding of the shape of the market and potential profitability.
4) TMUS' return potential is accentuated over the next few years as the potential value creation from the merger and the industry's
transformation resulting from 5G unfold and the evidence for demonstrable valuation creation becomes obvious (none of what we
illustrate here as our Home Run Scenario is in sell-side estimates; moreover, it is also likely largely missed by the buy-side as well).
5) We view the biggest risk to TMUS to be internal and not external. Do they execute an impeccable transition to the 5G network? Do
they retain / transition / grow the Sprint subscriber base? Do they capitalize on the opportunities afforded by 5G to offer brilliant and
valued services to consumer and enterprise customers, and significantly disrupt AT&T's and Verizon's legacy positions? Can they
avoid hubris and stakeholder deftness?
Allrightsreserved,InflectionCapitalManagement,LLC
2021E 2022E 2023E 2024E
Dated 11.8.20
Year-End Value $215 $233 $264 $294
Current Price $124 $115 $115 $115
IRR 73% 37% 29% 24%
The New T-Mobile Home Run Scenario
3. 2021E 2022E 2023E 2024E
Total EBITDA-NTM $31,093 $37,778 $40,527 $43,563
Free Cash Flow $1,255 $6,362 $16,092 $18,831
Debt Paydown $0 -$6,362 -$16,092 -$18,831
Net Debt (ex. Leases) $52,990 $46,629 $30,537 $11,706
Leverage 1.7 x 1.2 x 0.8 x 0.3 x
EV/EBITDA-FY1 8.5 x 8.3 x 8.1 x 7.8 x
Enterprise Value $321,114 $335,481 $350,942 $361,539
Equity Value $268,123 $288,853 $320,406 $349,833
Diluted Shares Out 1,249 1,249 1,249 1,249
Per Share $215 $231 $257 $280
Revenue $624 $1,969 $3,521 $5,383
EBITDA ($376) $316 $1,143 $2,177
EV/EBITDA-FY1 8.5 x 8.3 x 8.1 x 7.8 x
Enterprise Value $2,614 $9,207 $17,051
Excess Cash $871
Equity Value $2,614 $9,206 $17,922
Diluted Shares Out 1,249 1,249 1,249
Per Share $2 $7 $14
2021E 2022E 2023E 2024E
Dated 11.8.20
Year-End Value $215 $233 $264 $294
Current Price $124 $124 $124 $124
IRR 73% 37% 29% 24%
The New T-Mobile Home Run Scenario
T-Mobile's Traditional Wireless Biz
New 5G Markets
Explaining The New T-Mobile Home Run Scenario
Part-1: Shown below is a deconstruction of the potential value creation between the traditional wireless business and
the new opportunities that we foresee with 5G . As such, vs. TMUS' current valuation of $250B, we believe that Wall
Street will begin to value TMUS' existing wireless business at $320B for the end of 2021 based upon robust growth
customer and profit growth, and a 2022 EBITDA estimate of $31B (an estimate that will fill in during 2022); moreover,
Wall Street will also begin to attach additional value for "5G optionality". Should these segments grow as we forecast,
TMUS' stock price should increase to $294/sh by the end of 2024.
3
1
2
3
5
4
6 All rights reserved, Inflection Capital Management, LLC
4. The New T-Mobile 2020e 2021e 2022e 2023e 2024e 2025e
Industry Postpay Phone 229,413 238,016 245,752 250,667 255,680 260,793
YoY # Ch 4,129 8,603 7,736 4,915 5,013 5,114
YoY % Ch 1.8% 3.8% 3.3% 2.0% 2.0% 2.0%
TMUS Postpaid Phone Subs 66,894 74,144 79,944 83,424 86,904 89,688
Net Adds 7,250 5,800 3,480 3,480 2,784
TMUS Share 29.2% 31.2% 32.5% 33.3% 34.0% 34.4%
TMUS Adds / Industry Adds 84% 75% 71% 69%
Others 162,519 163,872 165,808 167,243 168,776 171,105
YoY % Ch 0.8% 1.2% 0.9% 0.9% 1.4%
Service Revenue 54,845 60,312 65,944 71,096 74,998 79,228
EBITDA ex. Lease Revenue 22,800 22,966 31,093 37,778 40,527 43,563
Service Margin 41.6% 38.1% 47.2% 53.1% 54.0% 55.0%
2021E 2022E 2023E 2024E
Total EBITDA-NTM $31,093 $37,778 $40,527 $43,563
Free Cash Flow $1,255 $6,362 $16,092 $18,831
Debt Paydown $0 -$6,362 -$16,092 -$18,831
Net Debt (ex. Leases) $52,990 $46,629 $30,537 $11,706
Leverage 1.7 x 1.2 x 0.8 x 0.3 x
EV/EBITDA-FY1 8.5 x 8.3 x 8.1 x 7.8 x
Enterprise Value $321,114 $335,481 $350,942 $361,539
Equity Value $268,123 $288,853 $320,406 $349,833
Diluted Shares Out 1,249 1,249 1,249 1,249
Per Share $215 $231 $257 $280
T-Mobile's Traditional Wireless Biz
The Home Run Potential for the Existing Wireless Business
Part-2:
Shown below is our forecasts for the primary drivers of the existing wireless business' forecasted EBITDA. We are
assigning a valuation of $320B to the business as Wall Street draws onto a $31B EBITDA # for 2022. Crucial to our
forecasts are strong ongoing subscriber gains fueled by >3% industry growth and share losses by Verizon or AT&T .
Verizon is at risk due to an inferior and "late" 5G network strategy. AT&T is at risk due to unruly business complexity, a
history of mis-execution, and zero evidence that their content + wireless consumer strategy has consumer appeal and
marketplace effectiveness. We also expect, T-Mobile to earn more 5G revenue from more devices and more data usage
(i.e. higher-tier plans). Margin expansion at TMUS is also a critical driver of value creation. The forecasted margin of 55%
for 2025 is far below the average of Verizon's and AT&T's, i.e. there is upside-risk. It will reach their levels in later years
as growth slows.
4
1
3
4
2
All rights reserved, Inflection Capital Management, LLC
5. The Value for "5G optionality" for The New T-Mobile
Part-3:
o Shown below is our forecasts for the new markets the we foresee coming from 5G.
o Both T-Mobile and Verizon were optimistic on fixed-wireless broadband.
o T-Mobile spoke of expanding fixed-wireless broadband trials (to over 450 cities) during the Q3 call and one would
expect the topic to be a meaningful part of its Q1 investor day. T-Mobile's focus is primarily rural and other
underserved markets--those without a strong incumbent.
5
Other "Platform" and "sharing-
opportunities" exist for
advertising, subscriptions,
VR/AR, payments, healthcare,
manufacturing, autonomous,
and the 5G KILLER APP.
Allrightsreserved,InflectionCapitalManagement,LLC
6. Subscribers:
o T-Mobile produced solid subscriber growth in Q3, despite the discontinuation of the Sprint brand and AT&T's aggressive phone
promotions to lock-in subscribers which materially decreased its churn of subscribers onto the market (a YoY delta of 500K).
Additionally, we suspect that T-Mobile's customer acquisition efforts have been dialed back as it put the priorities of getting Sprint
integrated and setting up to capture the merger synergies.
o Looking forward to 2021, we expect the market's growth to accelerate due to consumer interest in 5G and better connectivity (similar
to as why fixed-line broadband accelerated this year).
o In our Home Run Scenario, we foresee T-Mobile capturing the majority of that market expansion due to the reversal of that shared in
bullet-1, a step-up in business development efforts in enterprise and government (underpenetrated markets for them at only 9 pts vs.
29% overall), gains in rural markets due to more stores and better coverage (also an underpenetrated market for them), lower Sprint
churn, and a significant nationwide marketing effort touting its 2.5GHz 5G coverage of >100M POPs. This campaign's objective
would be to position T-Mobile as "the best network" and the "network that offered real 5G value to everywhere--not just mmW
hotspots." I.e. to be the provider to subscribe to if you want 5G. Historically, "network focus / prioritization" is the more premium-end
of the market; thus, T-Mobile is making a frontal assault on Verizon's and AT&T's customer base. That market share capture should
continue for the next few years until Verizon deployes its CBAN 5G (vs. its current more limited and spot-specific mmW coverage).
6All rights reserved, Inflection Capital Management, LLC
The New T-Mobile 1Q20 Q2'20 3Q20 4Q20 2020e 2021e 2022e 2023e 2024e
Industry Postpay Phone 225,894 224,748 226,873 229,413 229,413 238,016 245,752 250,667 255,680
YoY # Ch 2,125 2,540 4,129 8,603 7,736 4,915 5,013
YoY % Ch 2.7% 2.4% 2.6% 2.7% 1.8% 3.8% 3.3% 2.0% 2.0%
TMUS Postpaid Phone Subs 64,852 65,105 65,794 66,894 66,894 74,144 79,944 83,424 86,904
Net Adds 253 689 1,100 7,250 5,800 3,480 3,480
TMUS Share 28.7% 29.0% 29.0% 29.2% 29.2% 31.2% 32.5% 33.3% 34.0%
TMUS Adds / Industry Adds 84% 75% 71% 69%
In recent years, TMUS has captured 60-70% of
the market's growth. Being the "challenger" and
disruptor allowed them to do so. Over the next
few years, we expect that win rate to continue
because it will have the market's best network
and best price, and for the reasons noted above.
Key Focal Points / Drivers Over Next Year for Home Run Scenario
7. The New T-Mobile 2020E 2021E 2022E
Service revenues $54,851 $60,363 65,995
YoY $ ch $2,824 $5,512 $5,632
Growth Factor 1.5 x 2.0 x 1.0 x
% yoy growth 5% 10% 9%
Equipment revenues 19,744 27,061 25,873
Legacy Other revenues 1,046 800 800
Total revenues $75,642 $88,224 $92,668
% yoy growth 3.4% 16.6% 5.0%
Synergies
COGS-Cumulative ($4B rgt) -600 -1,600 -4,000
SG&A-Cumulative ($2B tgt) -600 -2,000 -3,000
Total -1,200 -3,600 -7,000
Cost of equipment 17,333 24,355 23,286
% of Equipment Revenue 87.8% 90.0% 90.0%
Network expense 12,911 13,729 11,950
% of Service Revenue 23.5% 22.7% 18.1%
ex-Synergies 24.6% 25.4% 24.2%
SG&A ex. SBC 18,887 20,331 19,805
% of Service Revenue 34.4% 33.7% 30.0%
ex-Synergies 35.5% 37.0% 34.6%
YoY $ ch ex. Synergies $2,844 $474
EBITDA ex SBC 28,006 30,370 38,174
Equipment Lease Rev & EBITDA -$5,331 -$7,306 -$6,986
Historic EBITDA Definition $22,675 $23,063 $31,188
YoY $ ch Adj. $389 $8,125
YoY $ Ch ex. Synergies -$2,011 $4,725
Key Focal Points / Drivers Over Next Year for Home Run Scenario
7
Allrightsreserved,InflectionCapitalManagement,LLC
Equipment revenue and cost for new 5G phones will
be a major driver of revenue and expense in '21, as
well as the 5G network's depreciation and cost.
Guidance for 2021's synergies is $2.4B. We expect that
to be raised throughout the year to $2.6B given prior
precedent and the "beat & raise" style of management
Additionally, we expect that total synergies exceed the
currently stated target of $6B, which is more and
earlier than guided.
Cost of Equipment relative to revenue is a critical
determinant of profits and indicator of the industry's
competitive intensity. We are modeling a slight
increase in that intensity.
We suspect that most of the near-term network synergies
are going to be obfuscated by the start-up costs for the
5G network. However, as the penetration of 5G
subscribers increases, eventually the duplicative 4G
costs will be "decommissioned" and where the 5G
network's fixed costs significantly leverage.
We expect that most of the near-term SG&A synergies to
be re-invested in growth, such as business development
efforts in the underpenetrated sub-segments of the
market and in a large nationwide marketing campaign to
drive awareness of T-Mobile's 5G network and coverage
and elevate the T-Mobile network's brand equity.
However, in '22 the synergies should show through as investments
are curtailed; that in combination with significant revenue growth, will
allow for a powerful EBITDA year in '22.