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T-Mobile US, Inc. (NYSE: TMUS) reported robust financial and operational results for Q2 2024, showcasing industry-leading growth across several metrics. The company recorded postpaid net account additions of 301,000, the best in the industry, and postpaid net customer additions of 1.3 million, marking a significant milestone of crossing 100 million postpaid customers.

Additionally, T-Mobile achieved the highest Q2 postpaid phone net customer additions in its history, with 777,000 new customers and a postpaid phone churn rate of 0.80%. Service revenues for the quarter amounted to $16.4 billion, a 4% increase year-over-year, while postpaid service revenues grew by 7% to $12.9 billion.

Net income surged by 32% to $2.9 billion, and diluted earnings per share (EPS) rose 34% to $2.49. Core Adjusted EBITDA also saw a 9% year-over-year increase, reaching $8.0 billion. T-Mobile’s high-speed internet net customer additions were 406,000, the highest share of industry net additions ever, bringing the total to 5.6 million.

T-Mobile’s network leadership continued to shine, with the company maintaining the largest, fastest, and most advanced 5G network in the industry. The company returned $3.0 billion to stockholders in Q2 2024, including $2.3 billion in common stock repurchases and a quarterly dividend payment of $759 million.
 

T-Mobile Outperforms Expectations in Q2, Beats EPS Forecast By $0.21

When comparing T-Mobile’s Q2 2024 performance against market expectations, the company exceeded both EPS and revenue forecasts.

Analysts had projected an EPS of $2.28, but T-Mobile outperformed with an actual EPS of $2.49, a 34% increase year-over-year. This beat the consensus by $0.21, demonstrating the company’s strong profitability and efficient cost management. Revenue expectations for the quarter were set at $19.58 billion, but T-Mobile reported total revenues of $19.77 billion.

This represents a 3% year-over-year increase and a slight 0.9% quarter-over-quarter growth. The company’s ability to surpass revenue expectations underscores its effective customer acquisition strategies and solid service revenue growth.

Postpaid service revenues, a key indicator of the company’s core business strength, grew by 7% year-over-year to $12.9 billion, further highlighting T-Mobile’s success in expanding its customer base and enhancing customer value. The company’s net income of $2.9 billion and core adjusted EBITDA of $8.0 billion also reflect its superior financial performance compared to industry peers.
 

T-Mobile Raises Full-Year Guidance for 2024

T-Mobile raised its full-year guidance for 2024, reflecting its confidence in continued strong performance. The company now expects postpaid net customer additions to be between 5.4 million and 5.7 million, up from the previous guidance of 5.2 million to 5.6 million. This upward revision indicates T-Mobile’s optimistic outlook on customer growth, driven by its superior network and value proposition.

Core Adjusted EBITDA is projected to be between $31.5 billion and $31.8 billion, slightly narrowing the previous range of $31.4 billion to $31.9 billion. This adjustment reflects the company’s strategic investments and operational efficiencies aimed at sustaining profitability.

Additionally, net cash provided by operating activities is expected to be between $21.8 billion and $22.2 billion, an increase at the midpoint from the prior guidance of $21.6 billion to $22.3 billion.

Cash purchases of property and equipment, including capitalized interest, are forecasted to be between $8.7 billion and $9.1 billion, versus the earlier range of $8.6 billion to $9.4 billion. Adjusted Free Cash Flow is anticipated to be between $16.6 billion and $17.0 billion, up from the previous guidance of $16.4 billion to $16.9 billion.

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