T-Mobile Posts Impressive Third-Quarter Results, Fueled by Strong Customer Growth and Record Free Cash Flow
T-Mobile US Inc (TMUS) delivered a strong performance in the third quarter, exceeding analyst expectations and solidifying its position as a leader in the telecommunications industry. The company reported earnings per share of $2.61, surpassing the consensus estimate of $2.41. Revenue for the quarter reached $20.16 billion, surpassing the analyst consensus estimate of $20.01 billion and representing an increase from $19.25 billion in the same period last year.
The impressive results were driven by strong customer growth and a record-high Free Cash Flow. Service revenues grew 5% year-over-year to reach $16.7 billion, with postpaid service revenues increasing by 8% to $13.3 billion. The company added 315,000 net postpaid accounts during the quarter, with 1.6 million net customer additions overall. Notably, postpaid phone net customer additions reached 865,000, showcasing the company’s continued success in attracting new subscribers. Further solidifying T-Mobile’s strength in the market, postpaid phone churn stood at a remarkably low 0.86%.
The company’s commitment to providing high-speed internet services also yielded positive results, with 415,000 net customer additions for the quarter. T-Mobile’s adjusted Free Cash Flow reached a record high of $5.2 billion, demonstrating its ability to generate substantial cash flow.
CEO Mike Sievert
expressed his satisfaction with the results, stating, “Delivering another quarter of industry-leading results, including our best third-quarter postpaid phone net adds in a decade and record low third quarter churn, translated into outsized financial results and empowered us to raise our 2024 guidance yet again.”Strong Growth Fuels Upgraded 2024 Guidance
Reflecting its confidence in the company’s continued momentum, T-Mobile raised its 2024 guidance across the board. The company now anticipates between 5.6 million and 5.8 million postpaid net customer additions. Additionally, T-Mobile projects core adjusted EBITDA between $31.6 billion and $31.8 billion, net cash from operations between $22 billion and $22.3 billion, and adjusted free cash flow between $16.7 billion and $17 billion.
This positive outlook reinforces T-Mobile’s position as a major player in the telecommunications industry. The company’s strong financial performance, impressive customer growth, and raised guidance suggest a promising future for T-Mobile. Investors appear to be enthusiastic about the company’s performance, as TMUS shares rose 3.43% in after-hours trading on Wednesday, reaching $228.53 at the time of publication.
