T-Mobile US Inc.
T-Mobile reported adjusted earnings of $2.99 per share, topping the analyst consensus estimate of $2.58, according to Benzinga Pro.
Revenue increased to $22.79 billion from $21.13 billion a year earlier but missed the Street estimate of $22.94 billion.
Postpaid net account additions declined 13% year over year to 277,000 but exceeded Bloomberg's consensus estimate of 264,341.
Postpaid average revenue per account increased 2% to $152.91, while postpaid account churn rose to 0.99% from 0.92% a year earlier.
Service revenue grew 9% year over year to $19.0 billion, while postpaid service revenue climbed 13% to $15.9 billion.
Cash Flow And Profitability
Net income increased 1% to $3.2 billion and included $146 million, net of tax, in accelerated depreciation and other UScellular merger-related costs.
Operating cash flow rose to $7.50 billion from $6.99 billion a year earlier. Adjusted free cash flow increased to $4.8 billion from $4.6 billion.
Premium Plans And Bundled Services Drive Strategy
T-Mobile continues to focus on premium wireless plans, bundled connectivity offerings and customer loyalty programs as competition for wireless and broadband subscribers intensifies.
Like rivals including AT&T Inc.
Management Highlights Long-Term Growth
T-Mobile executive Srini Gopalan told Bloomberg that strong customer relationships are supporting progress toward the company's financial goals. He said the carrier continues to see significant growth opportunities across wireless, broadband and emerging businesses as it invests in its network and technology.
Chief Operating Officer Jon Freier told Reuters that about 60% of new customers are choosing T-Mobile's highest-tier Experience plans, which include unlimited premium data and device upgrade benefits. He said the company is modernizing its wireless plan lineup while enhancing benefits for legacy customers.
Raised Free Cash Flow Outlook
T-Mobile reaffirmed its full-year outlook for postpaid net account additions of 950,000 to 1.05 million. The company continues to expect core adjusted EBITDA, which excludes lease revenues, of $37.1 billion to $37.5 billion.
T-Mobile raised its forecast for net cash provided by operating activities, including net payments related to the UScellular merger, to $28.4 billion to $28.8 billion, from its prior outlook of $28.1 billion to $28.7 billion.
Cash purchases of property and equipment, including capitalized interest, are still expected to be approximately $10.0 billion.
The company also raised its adjusted free cash flow guidance, including net payments related to the UScellular merger, to $18.4 billion to $18.8 billion, from its previous forecast of $18.1 billion to $18.7 billion.
TMUS Stock Reaction
TMUS Price Action: T-Mobile US shares were down 5.21% at $181.00 during premarket trading on Thursday, according to Benzinga Pro data.
