T-Mobile Q4 Earnings: Beats Estimates, Adds 1.9 Million Postpaid Customers, Targets 6 Million New Customers In 2025

T-Mobile US Inc. (TMUS) reported fourth-quarter earnings on Wednesday, January 29, 2025, surpassing analysts' estimates and adding 1.9 million postpaid customers. The company also announced its ambitious target of adding 6 million new customers in 2025. Here's a breakdown of the key takeaways from the earnings report and the company's outlook for the coming year.

Q4 2024 Results:

* Net income: $2.98 billion, or $2.57 per share, compared to the estimated $2.17 per share.
* Revenue: $21.87 billion, surpassing the estimated $21.17 billion.
* Postpaid net customer additions: 1.9 million, beating the estimated 859,810.
* Postpaid phone net customer additions: 903,000, exceeding the estimated 859,810.
* High-speed internet net customer additions: 428,000, surpassing the estimated 402,000.

2024 Full-Year Results:

* Net income: $11.34 billion, or $9.66 per share.
* Revenue: $81.4 billion.
* Postpaid net customer additions: 6.1 million.
* Postpaid phone net customer additions: 3.1 million.
* High-speed internet net customer additions: 1.7 million.

Outlook for 2025:

* Postpaid net customer additions: 5.5 million to 6.0 million.
* Core adjusted EBITDA: $33.1 billion to $33.6 billion.
* Net cash provided by operating activities: $26.8 billion to $27.5 billion.
* Adjusted free cash flow: $17.3 billion to $18.0 billion.

T-Mobile's strong Q4 results and ambitious targets for 2025 reflect the company's continued growth and market leadership. The company's success can be attributed to several factors, including its industry-leading network, customer-centric strategies, and expansion into new business areas.

T-Mobile's 5G network expansion and innovation, such as the introduction of 5G on Demand, contribute to its competitive advantage and customer acquisition strategies. The company's extensive 5G network coverage and leadership in 5G performance categories have attracted new customers and encouraged existing customers to upgrade to more expensive plans, driving revenue growth.

Moreover, T-Mobile's customer-centric strategies, such as eliminating data caps on Ultra customers, have attracted high-data users and boosted customer growth. The company's expansion into broadband services, with 428,000 high-speed internet net customer additions in Q4 2024, has also contributed to its growth.

In conclusion, T-Mobile's strong Q4 earnings, with 1.9 million postpaid customer additions and an ambitious target of 6 million new customers in 2025, reflect the company's continued growth and market leadership. The company's 5G network expansion and innovation, customer-centric strategies, and expansion into new business areas have contributed to its success. As T-Mobile continues to execute against its ambitious multiyear growth plan, investors can expect the company to maintain its momentum and deliver strong financial performance in the coming years.