T-Mobile exceeds analyst expectations and announces ambitious growth targets

T-Mobile US has released its results for the second quarter of fiscal year 2024, surpassing analyst estimates and setting ambitious forecasts. The company reported adjusted quarterly earnings of $2.49 per share, exceeding the consensus estimate of $2.28 by a notable 9.21%. Quarterly revenues amounted to $19.77 billion, 1.13% above the expected $19.55 billion, representing a year-over-year increase of 3.0%. The provider recorded an additional 301,000 postpaid accounts and achieved postpaid service revenues of $12.9 billion, a 7% rise compared to the previous year. Additionally, the number of postpaid phone customers increased by 777,000, significantly exceeding the expectations of 645,300. In comparison, AT&T reported 419,000 new postpaid phone customers, while Verizon added 148,000, both surpassing analyst estimates. T-Mobile recorded 406,000 new high-speed internet customers in the quarter, a decrease of 103,000 from the previous year, but still well above the analyst estimate of 400,700. The company’s adjusted free cash flow rose by 54% to a record high of $4.4 billion. For the full year 2024, T-Mobile now expects postpaid net customer additions to be between 5.4 million and 5.7 million, driven by strong demand for its unlimited discount plans that also include streaming benefits. Adjusted free cash flow is projected to be between $16.6 billion and $17.0 billion. In the highly competitive telecommunications industry, US providers are increasingly leveraging bundled offers that combine high-speed internet plans with streaming services to provide customers with the best deals. T-Mobile’s Go5G Next and Go5G Plus plans, which include both Netflix and Apple TV+ along with premium data plans, are particularly popular with customers. Due to rising costs, T-Mobile increased prices for several older phone plans in May. Despite this, T-Mobile's stock shows a pre-market increase of 2.65%, standing at $180.00.