The customer growth strategy is anticipated to drive substantial financial gains, including a significant boost in Service Revenues, an increase of nearly $10 billion in Annual Core Adjusted EBITDA by 2027, and an industry-leading Adjusted Free Cash Flow margin.At its Capital Markets Day event, T-Mobile US, Inc. (NASDAQ: TMUS) unveiled an ambitious three-year plan to sustain its growth momentum and drive significant value creation. The company’s senior leadership presented a clear strategy for future success, focusing on leveraging its proven network, exceptional value, and leading customer experience. The plan includes advancing network leadership through transformation into an AI-enabled, data-informed, digital-first organization. T-Mobile anticipates ongoing profitable share gains in underpenetrated segments, continued industry-leading growth in its broadband business, and exploration of new revenue opportunities.T-Mobile’s latest Capital Markets Day unveiled a bold three-year strategy aimed at sustaining its growth and maximizing value creation. The company not only surpassed its previous goals from 2021—such as building America’s top network, expanding market reach, and achieving $8 billion in run-rate synergies from the Sprint merger—but also exceeded financial expectations with over $30 billion in cumulative Adjusted Free Cash Flow from 2020 to 2023.
T-Mobile CEO Mike Sievert highlighted the company’s momentum:
“T-Mobile is poised for continued success with numerous opportunities to extend our leadership in customer growth and deliver robust financial and stockholder returns in the coming years. Our proven track record and bold ambitions will set new standards in customer experience, network innovation, and more.”
Key elements of T-Mobile’s plan for the next era of growth include:
- Network Leadership: T-Mobile plans to enhance its industry-leading network with advanced technologies like Massive MIMO, VoNR, and 5G Advanced. Collaborations with NVIDIA, Ericsson, and Nokia will drive innovation through a new AI-RAN Innovation Center. T-Mobile’s extensive spectrum holdings and network assets will continue to deliver superior 5G availability and performance.
- Transformative Customer Experiences: By leveraging AI and digital tools, T-Mobile aims to revolutionize customer interactions. Initiatives like the T-Life app and the custom-built IntentCX platform will streamline and personalize customer experiences, reducing service contacts and lowering operational costs.
- Profitable Share Taking: T-Mobile plans to expand its market share in underpenetrated areas and deepen customer relationships across its product and service portfolio. The company aims for significant growth in Smaller Markets and Rural Areas (SMRA) and continues to see potential in Top 100 Markets and T-Mobile for Business (TFB).
- Leading Broadband Growth: T-Mobile will drive broadband growth by reaching 12 million 5G broadband customers by 2028, up from a previous target of 7 to 8 million by 2025. Fiber partnerships will complement 5G efforts, expanding connectivity and driving revenue.
- Growing New Businesses: The company will explore new revenue streams, including advertising and T-Priority for first responders. T-Mobile’s strong brand and 5G network will support growth in these new areas.
- Financial Growth: T-Mobile expects accelerated service revenue growth, with a compound annual growth rate of approximately 5% from 2023 to 2027, reaching $75 to $76 billion. Core Adjusted EBITDA is projected to increase to $38 to $39 billion, reflecting a compound annual growth rate of about 7%. Adjusted Free Cash Flow is anticipated to be $18 to $19 billion by 2027.
T-Mobile’s commitment to balanced capital allocation includes $9 to $10 billion in annual capital expenditures and up to $50 billion in stockholder returns through dividends and share repurchases. The company will also retain about $20 billion for future investments and potential additional stockholder returns.
The company’s Board of Directors has declared a cash dividend of $0.88 per share, a 35% increase from the previous quarter, payable on December 12, 2024.
For further details, the Capital Markets Day event will be available for live viewing and replay on T-Mobile’s Investor Relations website. T-Mobile will also utilize its social media channels for ongoing financial and operational updates.
