T-Mobile Sets Ambitious Targets For 2025 Amid Strong Financial Results
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T-Mobile US, Inc. (Nasdaq: TMUS) has reported remarkable results for the fourth quarter of 2024, continuing its streak of industry-leading performance. The company achieved significant growth in customer numbers, with 1.9 million postpaid net customer additions in Q4 2024 and a total of 6.1 million for the year.
Additionally, the company recorded 903,000 postpaid phone net customer additions in Q4, contributing to a total of 3.1 million for the year. This impressive growth was complemented by a postpaid phone churn rate of 0.92% in Q4, marking one of the lowest churn rates in the company’s history.
T-Mobile Reports Exceptional Performance in Q4 2024
Financially, T-Mobile’s service revenues reached $16.9 billion in Q4 2024, marking a 6% increase from the previous year. The company’s net income rose to $3.0 billion, reflecting a 48% year-over-year growth. T-Mobile also reported its highest-ever diluted earnings per share (EPS) of $2.57 for the quarter.
T-Mobile’s core adjusted EBITDA rose to $7.9 billion in Q4, showcasing a 10% increase from the previous year. The company’s net cash provided by operating activities was $5.5 billion, demonstrating its strong cash flow generation capabilities.
T-Mobile’s Q4 2024 performance surpassed analyst expectations, particularly in terms of earnings per share and revenue. The company reported an EPS of $2.57, exceeding the anticipated $2.28 by a notable margin.
Additionally, T-Mobile’s total revenues for the quarter amounted to $21.87 billion, surpassing the expected $21.37 billion. This positive variance underscores the company’s capability to generate revenue growth amidst a competitive telecommunications landscape.
T-Mobile Sets Highest-Ever Guidance Range at the Start of the Year
The company expects postpaid net customer additions to range between 5.5 million and 6.0 million, marking its highest-ever guidance range at the start of the year. This guidance underscores T-Mobile’s commitment to sustaining its industry-leading customer growth and expanding its market share. Additionally, T-Mobile anticipates its core adjusted EBITDA to be between $33.1 billion and $33.6 billion, indicating continued financial strength and operational efficiency.
T-Mobile also projects net cash provided by operating activities to range from $26.8 billion to $27.5 billion, highlighting its ability to generate substantial cash flow. The company’s adjusted free cash flow is expected to be between $17.3 billion and $18.0 billion, further emphasizing its financial robustness. T-Mobile’s strategic focus on enhancing its network capabilities and delivering innovative customer experiences positions it well for sustained growth in 2025.
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Disclaimer: The author does not hold or have a position in any securities discussed in the article.