T-Mobile Delivers Industry-Leading Growth in Customers & Profitability

T-Mobile Delivers Industry-Leading Growth in Customers & Profitability

Driving long-term value creation requires consistent delivery of results quarter after quarter (after quarter!) and I’m excited to share that T-Mobile did it AGAIN in Q3. Our focus on customers and delivering profitable growth enabled more record results this quarter. A few highlights below:  

📝 Our DIFFERENTIATED FORMULA once again delivered INDUSTRY-LEADING CUSTOMER GROWTH, including the company’s highest Q3 postpaid phone net customer additions in a decade and hitting the 6 million broadband customer milestone!

💪 We continue to focus on EXTENDING OUR OVERALL NETWORK LEAD and were awarded the best 5G availability in the WORLD by Opensignal for the 4th time in a row!

📈 We TRANSLATED OUR CUSTOMER GROWTH into OUTSIZED FINANCIAL RESULTS including industry-leading Service Revenue, Core Adjusted EBITDA and Adjusted Free Cash Flow year-over-year growth. Our incredible results this quarter and so far in 2024, give us the confidence to increase our 2024 guidance across the board!

Focus on delivering the best network, best value and best experiences are what sets T-Mobile apart from the competition and #TEAMMAGENTA brings it all to life for our customers! 

Q3 Highlights

Customers

Our unique formula of best value + best network + best experiences once again drove outsized growth in underpenetrated growth areas and across network seekers nationwide. We lead the industry in share of switchers, and we grew share of households in both Top 100 and Smaller Markets and Rural Areas. We also continued our momentum with business customers, outpacing our nearest benchmark competitor not only in postpaid phone net additions and churn, but across all postpaid net adds with lots of runway ahead for profitable share taking. In broadband, we reached a major milestone of 6 million customers - just three years since launching the product. 

Network

Of course, our strong performance is fueled by our 5G network where we lead today and expect to extend that leadership for the duration of the 5G era with the best capital efficiency in the industry. Our network was recently awarded the best 5G availability in the WORLD for the fourth year in a row by Opensignal. Our unique Customer-Driven-Coverage uses AI to improve network performance, deliver higher customer satisfaction, and prioritize our network investments where they matter most to customers. Additionally, we operate the only scaled nationwide 5G stand-alone core with Voice over New Radio (VoNR) coverage now reaching more than 300 million people, further improving call quality, reducing latency and improving customer experiences.

Financials

Profitable customer growth continues to be our focus, and we delivered again on that this quarter. We translated our customer growth into industry-leading service revenue growth of 5% year-over-year, including postpaid service revenue growth twice that of our peers. Core Adjusted EBITDA grew 9% year-over-year, leading the industry by a wide margin. Combined with our unparalleled capital efficiency, we once again led the industry in conversion of Service revenues into Adjusted Free Cash Flow.

Outlook

We delivered yet another fantastic quarter and that gives us the confidence to raise our Customer, Core Adj. EBITDA & Adj. Free Cash Flow guidance for 2024 – once again. 

If you missed our earnings call, a replay is available here: https://bit.ly/3A7glhB

http://bit.ly/4fdFjdY

Which i had to come out of pocket a 2nd time only to have the ordered canceled 30 seconds later in a incident no one could explain so now they have 170.26 of my money I still have no phone and I sent back the original phones that were wrong told that when they were recieved I would get my refund and the s24 ultra would be sent. Well on aug 23,2024 a rep verified the phones were recieved and he would escalate the issue and get my refunds going. Still today the phones have not been put back in the system. I've been promised my a24 ultra would be here in my hands by nov 2 latest. Not to my surprise. I never got a call back ove spoke to 2 other reps since then both see the notes promising me the phone nove 2nd latest and still no one had done this. I signed a contract for 2 phones on June 2nd 2024 it's nowb0ct 30th and still nothing has been done. All il hear from each rep is how the last rep lied and did nothing.

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I have been with t mobil for 6 months now and it's been the worst experience I've ever had with any company in over 30 years . From day one I've been lies to and ran around to the point everything is in transcript and noted yet no one will follow through I've lost over 11,000 dollars and still had to go buy a phone myself when I signed a contract for 2 phones, however the sales rep li3d and told me I was receiving 2 phones t mobil don't even carry so when I revieved the wrong phones , and was supposed to be porting my business line over was told not to until the issues were handled . Well after over a month of run around I could no longer port the number costing me my business number of over 10 years , I lost 10 grand in contracts because customer couldn't reach me and thought I was no longer in business. Then my wife's grandfather went into the hospital and was not doing good so I booked a get away for 500 for a spa weekend hoping itvwoukd take her mind off things, only to be told I had to be at the tmobil store because the manager was going to take care of everything so lost the 500 deposit and the manager didn't even show up for work . So a salesman got a rep on the ohine who ordered 2 other phones l

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Michael M. Landman-Karny

Corporate Controller | FP&A Director| M&A Consultant| Aerospace, Consumer Product Manufacturing, Gaming, Entertainment, High Tech, Financial Services, Public and Private multinationals, PE-owned companies.🚀💼📈

1mo

Well done Peter!

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Kevin Estes, CFP®, MBA

Founder of Scaled Finance, LLC | Financial Planner for T-Mobile Employees and Their Families

1mo

Congratulations to Peter Osvaldik and the rest of my former Team Magenta coworkers on the excellent quarter! I especially love that T-Mobile's stock price rose for employees who participate in equity compensation like stock units and the Employee Stock Purchase Plan!

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