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10-QPeriod: Q3 FY2024

T-Mobile US, Inc. Quarterly Report for Q3 Ended Sep 30, 2024

Filed October 23, 2024For Securities:TMUSTMUSZTMUSITMUSL

Summary

T-Mobile US, Inc. (TMUS) reported strong financial performance for the quarter ending September 29, 2024, with total revenues reaching $20.16 billion, a 5% increase year-over-year. This growth was primarily driven by a robust performance in postpaid services, which saw an 8% increase in revenue, reflecting higher average revenue per account (ARPA) and a growing subscriber base. The company also experienced significant growth in its prepaid segment, up 10% year-over-year, largely due to the acquisition of Ka'ena Corporation, which added approximately 3.5 million prepaid customers. Net income surged by 43% to $3.06 billion for the quarter. The company's operating income also showed substantial improvement, increasing by 33% to $4.80 billion. This operational efficiency is further highlighted by a 16% increase in net cash provided by operating activities, reaching $6.14 billion. T-Mobile continues to execute on its strategic initiatives, including significant investments in its 5G network and potential future growth through acquisitions like UScellular, and joint ventures in fiber infrastructure, demonstrating a clear focus on expanding its market presence and service offerings.

Financial Statements
Beta
Revenue$20.16B
SG&A Expenses$5.19B
Operating Expenses$15.37B
Operating Income$4.80B
Net Income$3.06B
EPS (Basic)$2.62
EPS (Diluted)$2.61
Shares Outstanding (Basic)1.17B
Shares Outstanding (Diluted)1.17B

Key Highlights

  • 1Total revenues increased by 5% to $20.16 billion for the three months ended September 30, 2024, compared to the prior year period.
  • 2Postpaid revenues grew by 8% to $13.31 billion, driven by higher average revenue per account (ARPA) and increased average postpaid accounts.
  • 3Prepaid revenues saw a significant increase of 10% to $2.72 billion, boosted by customer additions from the Ka'ena Acquisition.
  • 4Net income rose by 43% to $3.06 billion, indicating strong profitability.
  • 5Operating income increased by 33% to $4.80 billion, reflecting improved operational efficiency.
  • 6Net cash provided by operating activities increased by 16% to $6.14 billion, showcasing healthy cash generation.
  • 7The company announced progress on strategic growth initiatives, including the acquisition of UScellular and joint ventures in fiber infrastructure.

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