10-QPeriod: Q2 FY2024

T-Mobile US, Inc. Quarterly Report for Q2 Ended Jun 30, 2024

Filed July 31, 2024For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc. (TMUS) reported solid financial results for the second quarter and first half of 2024, demonstrating continued growth in its core business. Total revenues increased by 3% for the quarter and 1% year-to-date, driven by strong performance in postpaid services, which saw a 7% increase in both periods, reflecting higher average postpaid accounts and ARPA. The acquisition of Ka’ena Corporation (Mint Mobile and Ultra Mobile) on May 1, 2024, contributed to a 6% rise in prepaid revenues for the quarter and a 3% increase year-to-date. Net income saw a substantial increase of 32% year-over-year for the quarter and 27% for the first half, reaching $2.9 billion and $5.3 billion, respectively. This growth was supported by improved operating income, which rose 22% and 20% in the respective periods, driven by better cost management and merger synergies. The company also continues to execute its capital allocation strategy, returning value to shareholders through dividends and share repurchases, while investing in network expansion and strategic acquisitions. Notably, T-Mobile announced a significant agreement to acquire UScellular's wireless operations for approximately $4.4 billion, expected to close in mid-2025, signaling further expansion and potential for synergy realization.

Financial Highlights

52 data points
Beta

Revenue

$19.77B

Net Income

$2.92B

14.8% Net Margin

EPS (Diluted)

$2.49

Total Assets

$208.56B

Cash & Equivalents

$6.42B

Free Cash Flow

$3.48B

Financial Statements
Beta
Revenue$19.77B
SG&A Expenses$5.14B
Operating Expenses$15.14B
Operating Income$4.63B
Net Income$2.92B
EPS (Basic)$2.50
EPS (Diluted)$2.49
Shares Outstanding (Basic)1.17B
Shares Outstanding (Diluted)1.17B

Key Highlights

  • 1Total revenues increased by 3% year-over-year to $19.77 billion for Q2 2024, and by 1% to $39.37 billion for the first six months.
  • 2Postpaid revenues grew by 7% year-over-year for both Q2 and the first six months, reaching $12.90 billion and $25.53 billion, respectively.
  • 3Net income increased significantly by 32% year-over-year to $2.93 billion for Q2 2024, and by 27% to $5.30 billion for the first six months.
  • 4Operating income improved by 22% year-over-year to $4.63 billion for Q2 2024 and by 20% to $8.63 billion for the first six months.
  • 5The company completed the acquisition of Ka’ena Corporation (Mint Mobile and Ultra Mobile) on May 1, 2024, contributing to prepaid revenue growth.
  • 6T-Mobile announced an agreement to acquire substantially all of UScellular's wireless operations for approximately $4.4 billion, expected to close mid-2025.
  • 7Adjusted Free Cash Flow increased by 54% year-over-year to $4.44 billion for Q2 2024 and by 48% to $7.79 billion for the first six months.

Frequently Asked Questions

For the second quarter of 2024, T-Mobile US, Inc. reported a 3% increase in total revenues to $19.77 billion. Postpaid revenues showed strong growth, increasing by 7% year-over-year. Net income rose significantly by 32% to $2.93 billion, and operating income also saw a substantial increase of 22% to $4.63 billion. The company also highlighted a 54% year-over-year increase in Adjusted Free Cash Flow to $4.44 billion.

T-Mobile completed the acquisition of Ka'ena Corporation, which includes prepaid brands Mint Mobile and Ultra Mobile, on May 1, 2024. Additionally, the company announced a major agreement to acquire substantially all of UScellular's wireless operations and select spectrum assets for approximately $4.4 billion, with an expected closing in mid-2025. T-Mobile also announced plans for joint ventures to acquire Lumos and Metronet, fiber-to-the-home platforms.

T-Mobile continues to execute its shareholder return program, which includes quarterly cash dividends and share repurchases. The company paid aggregate cash dividends of $759 million in the second quarter and $1.5 billion in the first half of 2024. Share repurchases totaled $2.3 billion in the second quarter and $5.8 billion in the first half of 2024 under its 2023-2024 Stockholder Return Program, which has approximately $8.7 billion remaining.

The company continues to invest in its 5G network infrastructure, though capital expenditures related to accelerated 5G network build-out in previous years are expected to reduce in 2024 compared to 2023. Strategic acquisitions like UScellular and planned fiber joint ventures indicate a continued focus on expanding its service offerings and market reach. The company is also benefiting from merger synergies and operational efficiencies.