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Sep 30, 2023
T-Mobile Q3 2023 Earnings Report
T-Mobile outperformed the industry on customer and service revenue growth, delivered the highest cash flow in company history in Q3 2023, and raised guidance again. The Un-carrier reached a network milestone by covering 300 million people with Ultra Capacity 5G months ahead of schedule and delivered its lowest Q3 postpaid phone churn in company history.
Key Takeaways
T-Mobile reported strong Q3 2023 results, outpacing the industry in customer growth and translating this into best-in-class growth in service revenues, profitability, and cash flow. The company raised its full-year 2023 guidance and continues to return value to stockholders through share repurchases and the introduction of a dividend.
Postpaid net account additions of 386 thousand, best in industry.
Postpaid net customer additions of 1.2 million, best in industry and raising guidance.
Service revenues of $15.9 billion grew 4% year-over-year.
Adjusted Free Cash Flow of $4.0 billion grew 94% year-over-year.
Revenue by Segment
Forward Guidance
T-Mobile raised its 2023 guidance for postpaid net customer additions, Core Adjusted EBITDA, net cash provided by operating activities, capital expenditures, and Adjusted Free Cash Flow.
Positive Outlook
- Postpaid net customer additions are expected to be between 5.7 million and 5.9 million, an increase from prior guidance of 5.6 million to 5.9 million.
- Core Adjusted EBITDA is expected to be between $29.0 billion and $29.2 billion, an increase from prior guidance of $28.9 billion to $29.2 billion.
- Merger synergies are expected to be approximately $7.5 billion.
- Net cash provided by operating activities is expected to be between $18.3 billion and $18.5 billion, an increase from prior guidance of $18.0 billion to $18.3 billion.
- Adjusted Free Cash Flow is expected to be between $13.4 billion and $13.6 billion, an increase from prior guidance of $13.2 billion to $13.6 billion.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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