T-Mobile US (TMUS) Q3 2024 earnings summary

Executive summary

• Achieved highest Q3 postpaid phone net customer additions in a decade, record low churn, and total net customer additions of 1.6 million, reaching 127.5 million total connections.

• Service revenues grew 5% year-over-year to $16.7 billion, net income rose 43% to $3.1 billion, and core adjusted EBITDA increased 9% to $8.2 billion.

• Maintained industry leadership in 5G network performance, digital sales, and broadband net adds, reaching 6 million broadband customers.

• Completed Ka'ena Acquisition (Mint Mobile, Ultra Mobile), adding 3.5 million prepaid customers and enhancing prepaid market position.

• Announced pending $4.4 billion acquisition of UScellular wireless operations and major fiber joint ventures (Lumos, Metronet) to expand service offerings.

Financial highlights

• Q3 2024 total revenues: $20.2 billion (+5% YoY); net income: $3.1 billion (+43% YoY); diluted EPS: $2.61 (+43% YoY).

• Core adjusted EBITDA reached $8.2 billion (49% margin), up 9% year-over-year.

• Adjusted Free Cash Flow for Q3: $5.2 billion (+29% YoY); margin reached 30.9%.

• Net cash from operating activities was $6.1 billion, up 16% year-over-year.

• Cash CapEx guidance remains $8.8–$9.0 billion for the year, with capital efficiencies driving lower spend.

Outlook and guidance

• Raised 2024 guidance: postpaid net customer additions now 5.6–5.8 million, core adjusted EBITDA at $31.6–$31.8 billion, and adjusted free cash flow at $16.7–$17.0 billion.

• Net cash from operating activities guidance increased to $22.0–$22.3 billion.

• Capital expenditures guidance unchanged at $8.8–$9.0 billion; long-term CapEx expected at $9–$10 billion annually.

• Management expects continued strong liquidity and capital resources to support operations, investments, and shareholder returns.

• Anticipates closing the UScellular acquisition and fiber joint ventures in 2025, with $1 billion in expected annual run-rate cost synergies from UScellular integration.