T-Mobile Outshines the Competition with Exceptional Q3 Earnings Report
T-Mobile Shines in Q3 Earnings Report, Outperforming Industry Peers
In a quarter filled with impressive numbers, T-Mobile continues to prove its commitment to delivering unparalleled customer experiences, leading the industry in postpaid phone net customer additions and reporting record-low churn rates.
Postpaid Phone Net Growth and Low Churn Rates
The carrier added a whopping 865,000 postpaid phone net customers, exceeding analyst expectations of 732,900. This marks the highest number of new postpaid phone customers added in over a decade. Additionally, postpaid phone churn rates dropped to a record low of 0.86%, outperforming the industry.
Industry-Leading Performance Across the Board
T-Mobile’s leadership in postpaid phone net additions wasn’t limited to just this category. The carrier also reported 315,000 postpaid net account additions and 1.6 million postpaid net customer additions, dominating the industry. Furthermore, T-Mobile led the way with 415,000 net customer additions to high-speed internet service.
Strong Financials and Guidance Upgrade
T-Mobile’s impressive performance translated to significant financial gains, with service revenue reaching $16.7 billion, a 5% year-over-year increase. This surpassed the industry average, while overall revenue came in at $20.16 billion, a 4.7% increase from last year’s Q3. Notably, T-Mobile was the only major US carrier to exceed analyst revenue estimates.
CEO Mike Sievert’s Insights
"Delivering another quarter of industry-leading results, including our best Q3 postpaid phone net adds in a decade and record-low Q3 churn, translated into outsized financial results and empowered us to raise our 2024 guidance yet again. Results like these prove that our powerful combination of best-in-class network, unmatched value, and innovative experiences for customers is a winning formula and will enable us to keep pace with our ambitious multi-year plan for the future."
CEO Mike Sievert’s Vision for the Future
As T-Mobile CEO Mike Sievert highlighted, the company’s strong performance is built upon its commitment to delivering the best-in-class network, unmatched value, and innovative experiences for customers. This strategy is expected to drive the company’s growth in the coming years.
T-Mobile’s Stock Performance
In regular trading, T-Mobile’s shares (TMUS) rose $1.94 to $220.95. After-hours trading saw an additional $3.04 added, closing at $223.99.
CEO Mike Sievert’s Outlook
As T-Mobile CEO Mike Sievert emphasized, the company’s strong momentum will continue to propel it towards profitable, industry-leading growth in the next era of the Un-carrier.
Stock Repurchases and Dividends
T-Mobile returned $1.4 billion to stockholders during the quarter, comprising $644 million in stock repurchases, a cash dividend of $758 million, and $891 million in repurchases during Q4 up to October 18th.
5G Leadership and Accolades
T-Mobile claims to have the best 5G availability in the world and is the only US wireless operator to earn a 5G Global Winner award from Opensignal.
Quote from Mike Katz, Head of Marketing
"I’d say it’s been a good cycle. For us, it’s been slightly up. Our business loves these moments when customers are considering other carriers. It positions us very well in those switching moments. That’s one of the things you saw from us in Q3."
T-Mobile’s Future Prospects
With its impressive Q3 performance, T-Mobile is poised to continue its streak of success, leading the industry in customer additions, churn rates, and financials. As the company continues to innovate and invest in its network, services, and customer experiences, T-Mobile is likely to remain a dominant force in the competitive US wireless market.
