Summary
T-Mobile US, Inc. (TMUS) reported its third-quarter 2022 financial results, showcasing continued revenue growth in its core postpaid segment, which increased by 7% year-over-year to $11.55 billion. While total revenues saw a slight sequential dip, the company demonstrated resilience with a 4% increase in total service revenues year-to-date. This growth was supported by an increase in total customers by 5% to 111.7 million, driven by strong postpaid net additions across phone and other services, including a significant expansion in High Speed Internet offerings. The company also reported a substantial increase in net cash provided by operating activities, up 26% year-over-year for the quarter, contributing to a healthy Free Cash Flow of $2.07 billion, up 32% year-over-year. However, the quarter was marked by significant one-time charges, including a $1.1 billion loss on the sale of its Wireline Business and a $477 million impairment charge related to Wireline assets. These items, along with substantial merger-related costs, impacted net income, which decreased by 26% year-over-year to $508 million for the quarter. Despite these charges, the company's strategic focus on its 5G network build-out and customer acquisition remains evident, supported by strong operational metrics and a reaffirmed commitment to growth.
Financial Highlights
51 data points| Revenue | $19.48B |
| SG&A Expenses | $5.12B |
| Operating Expenses | $18.20B |
| Operating Income | $1.28B |
| Net Income | $508.00M |
| EPS (Basic) | $0.40 |
| EPS (Diluted) | $0.40 |
| Shares Outstanding (Basic) | 1.25B |
| Shares Outstanding (Diluted) | 1.26B |
Key Highlights
- 1Total service revenues increased by 4% to $15.36 billion for the three months ended September 30, 2022, driven by a 7% increase in postpaid revenues.
- 2Total customers grew by 5% to 111.7 million, with total postpaid customers increasing by 5% to 90.4 million.
- 3Net cash provided by operating activities increased by 26% to $4.39 billion for the three months ended September 30, 2022.
- 4Free Cash Flow increased by 32% to $2.07 billion for the three months ended September 30, 2022.
- 5The company recognized a $1.1 billion pre-tax loss on the disposal of its Wireline Business.
- 6Depreciation and amortization decreased by 20% to $3.31 billion for the three months ended September 30, 2022, partly due to network rationalization.
- 7T-Mobile announced a new $14.0 billion stock repurchase program authorized in September 2022.