T-Mobile US (TMUS) Q2 2024 earnings summary

Executive summary

• Achieved industry-leading postpaid net customer additions of 1.3 million, surpassing 100 million postpaid customers, and set a Q2 record for postpaid phone net adds at 777,000, with balanced growth across rural and top 100 markets.

• Fixed wireless broadband/high speed internet customers reached 5.6 million, capturing a record share of industry broadband net adds.

• Net income rose 32% year-over-year to $2.9 billion, with service revenues up 4% to $16.4 billion and postpaid service revenue up 7% to $12.9 billion.

• Completed acquisition of Ka'ena Corporation (Mint Mobile, Ultra Mobile), adding 3.5 million prepaid customers and $100 million in net additional service revenue.

• Announced partnerships and joint ventures for fiber expansion, including with KKR/Metronet and Lumos, targeting millions of homes passed by 2030.

Financial highlights

• Adjusted Free Cash Flow reached a record $4.4 billion in Q2, up 54% year-over-year, with guidance raised to $16.6–$17.0 billion for 2024.

• Core Adjusted EBITDA grew 9% year-over-year to $8.0 billion, with 2024 guidance at $31.5–$31.8 billion.

• Net cash from operating activities was $5.5 billion in Q2, up 27% year-over-year, with 2024 guidance at $21.8–$22.2 billion.

• Postpaid ARPA rose to $142.54, up 3% year-over-year; postpaid phone ARPU was $49.07.

• Net income margin improved to 18% of service revenues; adjusted EBITDA margin reached 49%.

Outlook and guidance

• Raised full-year 2024 postpaid net customer additions guidance to 5.4–5.7 million, with about half from postpaid phone net adds.

• Capital expenditures for 2024 expected at $8.7–$9.1 billion, reflecting lower spend as 5G build-out nears completion.

• Plans to pay approximately $3.0 billion in total dividends in 2024, targeting 10% annual growth for future dividends.

• Anticipates normal seasonal postpaid phone churn trends in the second half, similar to last year.

• Majority of ACP program impact ($350–$450 million) to be felt in the second half, especially Q4.