T-Mobile US Surges Ahead with Robust Q4 Performance, Sets Sights on Continued Growth in 2024
T-Mobile US has delivered a striking performance in its fourth quarter (Dec) earnings report, exceeding revenue expectations and laying out an ambitious plan for the fiscal year 2024. The telecommunications giant reported GAAP earnings of $1.67 per share for Q4. Though these figures are not directly comparable to the estimated $1.91, they still reflect positively on the company's financial health. Revenues for the quarter showed a year-over-year increase of 1.0%, totaling $20.48 billion, surpassing the anticipated $19.67 billion.
The final quarter of 2023 was a period of continued customer growth for T-Mobile. The company added 299,000 postpaid net accounts and a remarkable 1.3 million postpaid net customers throughout the year. Q4 alone saw an increase of 934,000 postpaid phone net customer additions, contributing to a total of 3.1 million for the year. Notably, T-Mobile achieved the lowest postpaid phone churn in its history at 0.96% in Q4, averaging 0.87% over 2023.
T-Mobile's High-Speed Internet segment also witnessed robust growth, with 541,000 net customer additions in Q4 and a total of 2.1 million for the year.
Looking forward to fiscal year 2024, T-Mobile's outlook is optimistic. The company forecasts a 9% increase in Core Adjusted EBITDA, about 18% growth in net cash provided by operating activities, and a projected rise of approximately 22% in Adjusted Free Cash Flow.
In 2023, T-Mobile US Inc. (NASDAQ: TMUS) marked several key financial milestones. The company saw a 221% increase in net income, reaching $8.3 billion, and a 236% growth in diluted EPS, totaling $6.93. Service revenues climbed by 3% to $63.2 billion, with a 6% increase in postpaid service revenues. Adjusted Free Cash Flow soared by 77%, hitting $13.6 billion.
The company led the industry with 5.7 million postpaid net customer additions for the year, bolstered by significant advancements in its network, particularly in the Ultra Capacity 5G network that now covers over 300 million people.
Despite these achievements, T-Mobile operates in a competitive and dynamic industry, contending with giants like AT&T and Verizon. Continued investment in network and customer acquisition may impact margins, but T-Mobile's strategic focus on network coverage has been pivotal in its customer growth and 5G leadership.
Mike Sievert, CEO of T-Mobile, confidently stated, We are entering a phase of enormous value creation with a plan to deliver sustained customer and financial growth leadership.
In summary, T-Mobile US's impressive performance in 2023 and its forward-looking strategy for 2024 underscore its position as a major force in the telecommunications sector. With solid financials and a clear vision, T-Mobile is poised for continued success and growth.