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Sep 30, 2021
T-Mobile Q3 2021 Earnings Report
T-Mobile delivered industry-leading growth in postpaid service revenues, postpaid customers, and cash flow.
Key Takeaways
T-Mobile reported strong Q3 2021 results, with industry-leading postpaid service revenues and customer growth. The company raised its 2021 guidance across the board, driven by its growth and synergy-backed model.
Postpaid net additions of 1.3 million, leading the industry.
Record-high service revenues of $14.7 billion, a 4% year-over-year increase.
Net income of $691 million, impacted by higher merger-related costs.
Free Cash Flow of $1.6 billion, more than 4x year-over-year growth.
Revenue by Segment
Forward Guidance
T-Mobile raised its 2021 outlook across the board for the third consecutive quarter.
Positive Outlook
- Postpaid net customer additions are expected to be between 5.1 million and 5.3 million.
- Core Adjusted EBITDA is expected to be between $23.4 billion and $23.5 billion.
- Cash purchases of property and equipment are expected to be between $12.1 billion to $12.3 billion.
- Net cash provided by operating activities is expected to be between $13.9 billion and $14.0 billion.
- Free Cash Flow is expected to be between $5.5 billion and $5.6 billion.
Challenges Ahead
- Merger-related costs are expected to be between $2.8 billion and $3.0 billion before taxes.
- Net income is not able to be forecasted due to variability and difficulty in predicting certain items.
- Core Adjusted EBITDA should not be used to predict Net income as the difference between this measure and Net income is variable.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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