T-Mobile's Q2 Earnings: Net Postpaid Adds, Record Free Cash Flow, Subscriber Boost And More

T-Mobile US, Inc TMUS reported its second-quarter fiscal 2024 results Wednesday. Here’s a look at the highlights. 

T-Mobile reported adjusted quarterly earnings of $2.49 per share, which beat the analyst consensus estimate of $2.28 by 9.21%. 

Quarterly sales of $19.77 billion beat the analyst consensus estimate of $19.55 billion by 1.13%, representing a 3.0% increase from last year.

Also Read: T-Mobile Dials Up A Major Broadband Expansion: Teams With KKR To Acquire Metronet

T-Mobile US reported quarterly postpaid net account additions of 301 thousand and postpaid service revenues of $12.9 billion, up 7% year-over-year. 

Postpaid phone net customer additions of 777 thousand increased 17 thousand year-over-year, quashing analyst consensus of 645.3 thousand, Bloomberg reports. 

In comparison, AT&T Inc T clocked 419 thousand postpaid phone net adds, topping analyst estimates of 279 thousand. Verizon reported postpaid phone net additions of 148 thousand, above forecasts of 118 thousand.

T-Mobile US reported 406 thousand high-speed internet net customer additions, a decrease of 103 thousand year-over-year but surpassing the analyst consensus of 400.7 thousand.

T-Mobile US’ adjusted free cash flow of $4.4 billion increased 54% year-over-year, a record high.

Outlook: T-Mobile expects full-year 2024 postpaid net customer additions of 5.4 million—5.7 million (prior 5.2 million—5.6 million), driven by robust demand for its discounted unlimited plans, including streaming perks.

Adjusted free cash flow is expected to be between $16.6 billion – $17.0 billion (prior $16.4 billion – $16.9 billion). 

As competition intensifies in the telecom sector, U.S. carriers are bundling streaming services with high-speed internet plans to attract customers seeking the best deals.

T-Mobile’s Go5G Next and Go5G Plus plans, which include Netflix Inc NFLX and Apple Inc AAPL Apple TV+ alongside premium data plans, have been popular with customers.

In May, T-Mobile raised prices for several legacy phone plans due to rising costs.

TMUS Price Action: T-Mobile shares are up 2.65% at $180.00 premarket at last check Wednesday.

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