T-Mobile's Earnings Beat Projections on Mobile Subscriber Gains

T-Mobile US, Inc. (NASDAQ: TMUS) reported fourth quarter and full-year 2024 results today, delivering industry-leading customer growth across the board, including industry-best growth in postpaid accounts, total postpaid, postpaid phone, prepaid, and High Speed Internet customers. The company also tied its lowest-ever Q4 postpaid phone churn, and delivered a record low postpaid phone churn for the full year alongside its highest-ever postpaid phone gross additions. The company translated its industry-leading customer growth into industry-best service revenue and cash flow growth in 2024 while fueling stockholder returns of $14.4 billion, executing against its ambitious multiyear growth plan.

T-Mobile's strong mobile subscriber gains can be attributed to several key drivers:

1. Network Leadership: T-Mobile has consistently invested in its network, leading to industry-leading performance in network experience categories from Opensignal and Ookla. This has translated into real business outcomes, such as a significant contract with the City of New York for wireless services to its Public Safety network.
2. Best Value and Experience: T-Mobile's Un-carrier strategy offers customers more value and a better experience compared to its competitors. This includes initiatives like T-Mobile Tuesdays, which offers customers freebies and discounts, and its Magenta MAX plan, which offers unlimited data, streaming, and other perks.
3. Customer Centricity: T-Mobile has focused on putting customers first, leading to high customer satisfaction and loyalty. This is reflected in its low postpaid phone churn rates, which were at a record low of 0.86% in 2024.
4. Broadband Expansion: T-Mobile's expansion into the broadband market with its Home Internet service has also contributed to its subscriber gains. In 2024, T-Mobile added 1.7 million High Speed Internet net customers, the highest in company history.

T-Mobile's network infrastructure and 5G capabilities have significantly contributed to its competitive advantage in the market. The company has consistently won awards for its network performance, including being unbeaten for reliability experience and winning awards for the fastest, most consistent, and most available 5G network from Ookla. This network differentiation has translated into real business outcomes, such as a significant contract with the City of New York to provide wireless services to its Public Safety network.

To maintain this edge, T-Mobile is making several investments in its network infrastructure and 5G capabilities. In 2024, the company plans to invest $15 billion in its network, including $10 billion in 5G deployment. This investment will enable T-Mobile to expand its 5G coverage and capacity, further enhancing its network performance and customer experience.

T-Mobile's strong mobile subscriber gains and network leadership have translated into industry-leading financial performance. The company reported service revenues of $16.9 billion in Q4 2024 and $66.2 billion in 2024, both of which were industry-leading growth. T-Mobile's net income in 2024 was $11.3 billion, with diluted EPS of $9.66, both of which were the highest in company history. The company's core adjusted EBITDA in 2024 was $31.8 billion, with net cash provided by operating activities of $22.3 billion and adjusted free cash flow of $17.0 billion, both of which were industry-leading FY growth.

T-Mobile's stockholder returns in 2024 were $14.4 billion, split across repurchases of $11.1 billion and cash dividends of $3.3 billion. The company has up to an additional $14.0 billion authorized through the end of 2025, indicating its commitment to returning capital to shareholders.

T-Mobile's strong mobile subscriber gains, network leadership, and industry-leading financial performance position the company well for continued growth in 2025. The company expects postpaid net customer additions to be between 5.5 million and 6.0 million, core adjusted EBITDA to be between $33.1 billion and $33.6 billion, net cash provided by operating activities to be between $26.8 billion and $27.5 billion, and adjusted free cash flow to be between $17.3 billion and $18.0 billion.

In conclusion, T-Mobile's earnings beat projections on mobile subscriber gains highlights the company's strong performance in the market, driven by its network leadership, best value and experience, customer centricity, and broadband expansion. The company's investments in its network infrastructure and 5G capabilities, coupled with its industry-leading financial performance, position T-Mobile well for continued growth in the long term.