What drove T-Mobile US's gross profit growth in 2023?

T-Mobile US's gross profit grew by 8.35% in 2023, reaching $13.09 billion. This growth was driven by several key factors: 1. **Strategic Focus on Postpaid and Broadband Growth**: T-Mobile's emphasis on postpaid and broadband customer growth contributed significantly to the increase in gross profit. The company added 1.6 million postpaid net customers and 299 thousand postpaid net account additions, leading to a 5% year-over-year growth in postpaid revenues. High-speed Internet net customer additions also reached 509 thousand, surpassing competitors. 2. **Record Low Churn Rate**: The company achieved a record low postpaid phone churn rate of 0.77%, which helped maintain customer loyalty and reduce acquisition costs, thereby boosting gross profit margins. 3. **5G Network Investment**: T-Mobile's investment in its nationwide 5G network and coverage of 98% of Americans with ultra-capacity 5G network contributed to its industry-leading postpaid customer growth. This network advantage likely led to increased revenue and better pricing power. 4. **Cost Management**: T-Mobile's focus on cost management and lower operating expenses, as seen in previous quarters, continued to positively impact gross profit. Despite declining revenues from equipment sales and prepaid services, the company's profitability improved due to efficient expense management. In summary, T-Mobile's gross profit growth in 2023 was driven by strategic customer growth initiatives, particularly in postpaid and broadband services, a strong 5G network, effective cost management, and a low churn rate. |code|Ticker|Name|Date|Operating Profit Margin|Net Profit Margin|market_code| |---|---|---|---|---|---|---| |TMUS|TMUS.O|T-Mobile US|2024 Q1|15.913034602429315|12.116|185| |TMUS|TMUS.O|T-Mobile US|2024 Q2|17.512574302697757|13.4609|185| |TMUS|TMUS.O|T-Mobile US|2024 Q3|18.23343636607983|14.0405|185| |TMUS|TMUS.O|T-Mobile US|2024 Q4|17.934889434889435|13.93|185| |code|Ticker|Name|Date|Total Revenue YoY|Diluted EPS YoY|Gross Profit YoY|market_code| |---|---|---|---|---|---|---|---| |TMUS|TMUS.O|T-Mobile US|2024 Q1|-0.19356153219233904|26.58227848101265|4.372861553867979|185| |TMUS|TMUS.O|T-Mobile US|2024 Q2|3.000625130235466|33.87096774193549|6.791338582677166|185| |TMUS|TMUS.O|T-Mobile US|2024 Q3|4.726781633077083|43.406593406593394|8.384913757530741|185| |TMUS|TMUS.O|T-Mobile US|2024 Q4|6.807305400918058|53.89221556886227|8.354032124523927|185| |code|Ticker|Name|Date|Total Revenue YoY|Total Revenue|market_code| |---|---|---|---|---|---|---| |TMUS|TMUS.O|T-Mobile US|2024 Q1|-0.19356153219233904|1.9594E10|185| |TMUS|TMUS.O|T-Mobile US|2024 Q2|3.000625130235466|1.9772E10|185| |TMUS|TMUS.O|T-Mobile US|2024 Q3|4.726781633077083|2.0162E10|185| |TMUS|TMUS.O|T-Mobile US|2024 Q4|6.807305400918058|2.1872E10|185| |code|Ticker|Name|Date|Gross Profit|Gross Profit YoY|market_code| |---|---|---|---|---|---|---| |TMUS|TMUS.O|T-Mobile US|2024 Q1|1.2507E10|4.372861553867979|185| |TMUS|TMUS.O|T-Mobile US|2024 Q2|1.302E10|6.791338582677166|185| |TMUS|TMUS.O|T-Mobile US|2024 Q3|1.3133E10|8.384913757530741|185| |TMUS|TMUS.O|T-Mobile US|2024 Q4|1.3087E10|8.354032124523927|185| |code|Ticker|Name|Date|Diluted EPS YoY|Diluted EPS|market_code| |---|---|---|---|---|---|---| |TMUS|TMUS.O|T-Mobile US|2024 Q1|26.58227848101265|2|185| |TMUS|TMUS.O|T-Mobile US|2024 Q2|33.87096774193549|2.49|185| |TMUS|TMUS.O|T-Mobile US|2024 Q3|43.406593406593394|2.61|185| |TMUS|TMUS.O|T-Mobile US|2024 Q4|53.89221556886227|2.57|185|