T-Mobile sees 3Q service revenue of about $400M

T-Mobile sees 3Q service revenue of about $400M

T-Mobile (NASDAQ: TMUS) has reported that it expects to generate about $400 million more in service revenue this quarter, driven by the integration of customers from its recently acquired regional rival, UScellular. The U.S. wireless carrier announced the acquisition in May 2024 and closed the deal on August 1, taking over UScellular's wireless operations, including customers, stores, and 30% of its spectrum assets [1].

The company has also raised its annual cost savings target to $1.2 billion, up from its initial projection of about $1 billion. This increase is attributed to the integration of UScellular, which is expected to be completed within two years, rather than the initial three-to-four-year projection [1]. T-Mobile anticipates that the integration will generate approximately $125 million in core adjusted EBITDA, along with $100 million in integration costs and $175 million in depreciation and amortization expenses [2].

In addition to the financial benefits, T-Mobile is also expected to take a non-cash charge of about $350 million in the third quarter due to its switch to a more streamlined billing platform [1]. This move is aimed at improving operational efficiency and reducing costs.

The integration of UScellular is a significant milestone for T-Mobile, which is looking to expand its market share and improve its competitive position in the U.S. wireless market. The company's ability to achieve these financial targets will be closely watched by investors and industry analysts in the coming quarters.

References:
[1] Reuters. (2024). T-Mobile expects $400 million in service revenue this quarter. Retrieved from https://ca.finance.yahoo.com/news/t-mobile-expects-400-million-141038353.html
[2] Seeking Alpha. (2024). T-Mobile sees $400M Q3 boost from UScellular deal. Retrieved from https://seekingalpha.com/news/4492241-t-mobile-sees-400m-q3-boost-from-uscellular-deal-raises-synergy-target-to-12b