BELLEVUE, Wash. – T-Mobile US, Inc. (NASDAQ:) reported third-quarter earnings that beat analyst expectations and raised full-year expectations, sending the stock up 3% in response to the positive results.
The telecommunications giant posted adjusted earnings per share of $2.61, beating analyst expectations of $2.43 by $0.18. Revenue for the quarter was $20.16 billion, surpassing the consensus estimate of $20.01 billion.
T-Mobile achieved the highest number of postpaid telephony customers in ten years in the third quarter, with 865,000 new subscribers. The company also reported the lowest churn rate for postpaid phones in its history in the third quarter: 0.86%.
“Delivering another quarter of industry-leading results, including our best third-quarter postpaid phone additions in a decade and record-low customer churn in the third quarter, have translated into outsized financial results and allowed us to reset our 2024 expectations to increase,” said Mike Sievert, CEO of T-Mobile.
The company raised its full-year guidance on several key metrics. T-Mobile now expects net growth of 5.6 million to 5.8 million postpaid customers, up from the previous forecast of 5.4 million to 5.7 million. Core Adjusted EBITDA is expected to range from $31.6 billion to $31.8 billion, while Adjusted Free Cash Flow is expected to range from $16.7 billion to $17 billion.
T-Mobile’s service revenue grew 5% year-over-year to $16.7 billion, while postpaid services revenue rose 8% to $13.3 billion. The company also reached a milestone of 6 million broadband customers during the quarter.
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