T-Mobile Surpasses 2021 Capital Markets Day Goals, Sets New Ambitions, Boosts Dividend & More

T-Mobile US, Inc. TMUS shares are trading higher today. The company disclosed long-term goals, AI deals, and a dividend hike on Wednesday.

T-Mobile revealed a three-year plan to drive growth. The strategy comprises expanding its AI-driven, digital-first approach, increasing market share in underpenetrated areas, boosting broadband growth, and exploring new revenue streams.

The company exceeded its 2021 Capital Markets Day goals, including building a solid network in America, expanding market reach, and achieving $8 billion in synergies from the Sprint merger.

Apart from this, T-Mobile plans to enhance its network leadership with advanced technologies like Massive MIMO, VoNR, and 5G Advanced, backed by its nationwide 5G standalone network.

In a separate release, T-Mobile and OpenAI disclosed a transformative multi-year partnership aimed at revolutionizing customer experience. This collaboration merges T-Mobile’s deep customer relationship skills with OpenAI’s cutting-edge AI technology and R&D capabilities.

T-Mobile CEO Mike Sievert said, “T-Mobile is a company on the move with tremendous opportunities in front of us to further extend our outperformance in customer growth and translate that into strong top and bottom-line growth that will enable a compelling capital return opportunity over the next few years,”

Also Read: T-Mobile Partners with NVIDIA, Ericsson, And Nokia to Pioneer AI-Driven Mobile Networks

Outlook: T-Mobile expects service revenue between $75 billion and $76 billion and adjusted free cash flow of $18 billion-$19 billion in 2027.

T-Mobile for Business (TFB) is anticipated to deliver double-digit growth, with overall service revenue projected to grow at a 5% CAGR from 2023 to 2027.

The company now targets 12 million 5G broadband customers by 2028, significantly raising its previous goal of 7 to 8 million by 2025.

The company projects core Adjusted EBITDA growth, targeting $38 billion to $39 billion in 2027, reflecting a 7% CAGR at the midpoint from 2023 and a $10 billion increase from 2023 at the high end of guidance.

This growth is expected to be fueled by operational leverage and efficiencies from technology, AI, and digital innovation.

Dividend Boost: T-Mobile disclosed that its Board of Directors has declared a cash dividend of $0.88 per share, reflecting a 35% increase from the previous quarter.

The dividend will be payable on December 12, 2024, to stockholders of record as of November 27, 2024.

Also, the company plans to allocate around $80 billion through 2027 for investments and shareholder returns, including up to $50 billion for dividends and share repurchases (in addition to the $25 billion already returned to shareholders).

Apart from this, T-Mobile introduced T-Priority, the world’s first 5G network slice dedicated to first responders, providing advanced connectivity solutions and unparalleled support for emergency situations.

Investors can focus on the stock via The Communication Services Select Sector SPDR Fund XLCand Invesco BuyBack Achievers ETF PKW.

Price Action: TMUS shares are up 1.04% at $198.73 at the last check Thursday.

Photo by viewimage on Shutterstock

Read Next:

• Apple iPhone 16 Selling At A ‘Greater Rate Than Last Year,’ Says T-Mobile CEO Amid Reports Of Lower Demand: ‘People Are Buying Pros, They’re Buying Maxs… They’re Buying Up The Food Chain’

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.