T-Mobile’s Strong Q1 2024 Performance & Raised Guidance

T-Mobile US, Inc. (NASDAQ: TMUS) unveiled its first quarter 2024 results today, marking a significant stride forward in both its operational performance and financial outlook. The company not only raised its full-year guidance but also showcased remarkable industry-leading customer growth, bolstered by an array of achievements including an enhanced share of postpaid phone net additions year-over-year and its lowest ever Q1 postpaid phone churn. This success was underpinned by T-Mobile’s steadfast commitment to delivering unparalleled value, top-tier network quality, and exceptional customer experiences, which resonated strongly with consumers.

Mike Sievert, CEO of T-Mobile, expressed enthusiasm about the company’s robust start to 2024, emphasizing the sustained momentum amid a landscape where other wireless providers experienced tempered customer growth. He attributed this ongoing success to T-Mobile’s unique blend of offerings, which continue to set new benchmarks in the industry. Sievert’s confidence in T-Mobile’s trajectory is reflected in the upward revision of the company’s guidance for 2024, signaling optimism for future endeavors.

Industry-Leading Customer Growth Driven by Superior Network and Value Proposition

T-Mobile’s performance in the first quarter showcased a series of notable achievements in customer acquisition and retention. Despite a slight decrease in postpaid net account additions compared to the previous year, the company demonstrated resilience with substantial gains in postpaid net customer additions. Of particular significance was the increase in postpaid phone net customer additions, coupled with a commendable reduction in postpaid phone churn, reflecting T-Mobile’s ability to cultivate strong customer loyalty.

Moreover, T-Mobile’s endeavors in the prepaid and broadband segments yielded promising results, with improvements in net customer losses and churn rates. The company surpassed the milestone of 5 million High-Speed Internet customers, further solidifying its position as a leading broadband provider. Overall, T-Mobile closed the quarter with a record high in total customer connections, underlining its expanding footprint and growing relevance in the telecommunications landscape.

Translating Customer Growth into Financial Excellence

T-Mobile’s impressive customer growth translated into robust financial performance, characterized by significant year-over-year increases in service revenues and profitability. Total service revenues saw a notable uptick, driven by a strong performance in postpaid service revenues. The company reported a substantial increase in net income and diluted earnings per share (EPS), reflecting its ability to generate sustainable value for stakeholders.

Core Adjusted EBITDA witnessed healthy growth, underscoring T-Mobile’s efficient operational management and solid financial footing. Additionally, the company reported substantial improvements in net cash provided by operating activities and adjusted free cash flow, further reinforcing its financial resilience and capacity for value creation. T-Mobile’s commitment to shareholder returns remained unwavering, with significant investments in stock repurchases and dividends.

Fortifying 5G Leadership and Network Superiority

T-Mobile continued to strengthen its position as a leader in 5G innovation and deployment, leveraging its advanced Ultra Capacity 5G network. With a strategic focus on mid-band spectrum deployment, T-Mobile has achieved industry-leading levels of 5G network traffic, driving a superior network experience for customers. The company’s multi-layered approach to 5G, encompassing various spectrum bands, ensures consistent and reliable connectivity, with a substantial proportion of customers already benefiting from 5G technology.

The company’s efforts have not gone unnoticed, with third-party recognition affirming T-Mobile’s position as a frontrunner in overall network performance. As 5G increasingly becomes the standard for network connectivity, T-Mobile’s leadership in this domain positions it favorably to capitalize on emerging opportunities and deliver enhanced experiences to its customers.

Elevating Guidance for 2024

Encouraged by its strong performance and favorable outlook, T-Mobile revised its guidance for 2024, reflecting heightened expectations for key performance metrics. The company anticipates further growth in postpaid net customer additions, reinforcing its position as a preferred choice among consumers. Moreover, T-Mobile aims to sustain its trajectory of financial success, with revised projections for core adjusted EBITDA, net cash provided by operating activities, cash purchases of property and equipment, and adjusted free cash flow.

As T-Mobile charts its course for the remainder of 2024, the company remains committed to driving innovation, delivering exceptional value to customers, and creating sustainable value for shareholders. With a solid foundation built on industry-leading network capabilities and a customer-centric approach, T-Mobile is poised to navigate the evolving telecommunications landscape with confidence and resilience.

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