T-Mobile Reports Strong Q3 Results: Service Revenues Grew 5% YOY, FCF Grew 29%, Raised FY24 Guidance

T-Mobile US Inc TMUS reported its third-quarter results after Wednesday's closing bell. Here's a look at the key figures from the quarter. 

The Details: T-Mobile reported quarterly earnings of $2.61 per share, which beat the analyst consensus estimate of $2.41. Quarterly revenue came in at $20.16 billion which beat the analyst consensus estimate of $20.01 billion and is an increase over sales of $19.25 billion from the same period last year.

• Service revenues of $16.7 billion grew 5% year-over-year.
• Postpaid service revenues of $13.3 billion grew 8% year-over-year.
• Adjusted Free Cash Flow of $5.2 billion grew 29% year-over-year and is a record high for the company.
• Postpaid net account additions were 315,000 in the quarter.
• Postpaid net customer additions were 1.6 million.
• Postpaid phone net customer additions were 865,000.
• Postpaid phone churn was 0.86%.
• High-speed Internet net customer additions were 415,000.

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“Delivering another quarter of industry-leading results, including our best third-quarter postpaid phone net adds in a decade and record low third quarter churn, translated into outsized financial results and empowered us to raise our 2024 guidance yet again,” said Mike Sievert, CEO of T-Mobile.

Outlook: T-Mobile raised its 2024 guidance across the board and now expects between 5.6 million and 5.8 million postpaid net customer additions, core adjusted EBITDA of between $31.6 billion and $31.8 billion. The company sees net cash from operations of between $22 billion and $22.3 billion and adjusted free cash flow is projected in a range of $16.7 billion to $17 billion.

TMUS Price Action: According to Benzinga Pro, T-Mobile shares are up 3.43% after-hours at $228.53 at the time of publication on Wednesday.

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