TLDR:
- T-Mobile added 865,000 postpaid phone customers in Q3, exceeding analyst expectations of 727,500
- Revenue reached $20.16 billion, beating estimates of $20.01 billion
- Company raised its postpaid net customer additions forecast to 5.6-5.8 million from 5.4-5.7 million
- T-Mobile outperformed competitors AT&T and Verizon in subscriber growth and revenue expectations
- Customer churn rate remained low at 0.86% in Q3
T-Mobile US delivered impressive third-quarter results for 2024, marking significant growth in both subscriber numbers and revenue. The telecommunications giant reported adding 865,000 postpaid phone customers during the quarter, substantially exceeding Wall Street’s expectations of approximately 727,500 new subscribers.
The company’s quarterly revenue reached $20.16 billion, surpassing analyst estimates of $20.01 billion. This performance represents a 4.7% increase in revenue, demonstrating steady growth in the competitive telecommunications market.
In response to the strong quarterly performance, T-Mobile raised its forecast for postpaid net customer additions. The company now expects to add between 5.6 million and 5.8 million customers, up from its previous projection of 5.4 million to 5.7 million.
The success can be attributed largely to T-Mobile’s competitive pricing strategy and its extensive 5G network coverage. The company’s premium plans, including Go5G Next and Go5G Plus, which bundle streaming services like Netflix, have proven particularly attractive to customers.
Customer retention has emerged as another bright spot for T-Mobile, with a churn rate of just 0.86% during the third quarter. This low turnover rate indicates strong customer satisfaction with the company’s services and pricing structure.
T-Mobile’s broadband division also showed robust growth, adding 415,000 new subscribers during the quarter. This exceeded analyst predictions of 401,000 additions and brought the company’s total high-speed internet customer base to 6 million.
The company’s investment in infrastructure continues to expand its market reach. In July, T-Mobile announced a $4.9 billion joint venture with KKR & Co. to acquire fiber-optic internet service provider Metronet, strengthening its position in the home internet market.
In the mobile device segment, T-Mobile reported positive results from the iPhone 16 release in September. Unlike its competitors AT&T and Verizon, who saw lower equipment revenue due to slower upgrade rates, T-Mobile experienced slightly higher demand compared to previous iPhone launches.
The company’s financial outlook remains strong, with adjusted earnings before interest, tax, depreciation, and amortization now expected to reach between $31.6 billion and $31.8 billion for the year.
T-Mobile’s earnings per share for the quarter came in at $2.61, exceeding analyst expectations of $2.43.
The market responded positively to these results, with T-Mobile’s stock rising 2.44% in after-hours trading to reach $226.34.
The company’s performance in the wireless sector has been particularly notable when compared to its main competitors. T-Mobile was the only major carrier to beat analyst revenue forecasts during this period.
Looking ahead, T-Mobile’s CEO Mike Sievert has projected service revenue to grow at a compound annual rate of about 5% from 2023 to 2027, potentially reaching $76 billion.
The company’s stock has shown strong performance throughout the year, gaining 38% through Wednesday’s close, outpacing both AT&T’s 34% increase and Verizon’s 14% gain.
T-Mobile continues to expand its rural coverage areas while selling fixed wireless access in locations where fiber internet availability is limited.
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