On October 25, 2023, T-Mobile US Inc (TMUS, Financial) released its Q3 2023 earnings report, showcasing impressive performance in customer growth and financial growth. The company outpaced the industry on customer growth, fueled by its best network and value combination across its unique growth opportunities. The company continues to translate its industry-leading customer growth into best-in-class growth in service revenues, profitability, and cash flow, while raising full-year 2023 guidance.
Performance Highlights
T-Mobile reported postpaid net account additions of 386 thousand, postpaid net customer additions of 1.2 million, and postpaid phone net customer additions of 850 thousand, all best in the industry. The company also reported a record low postpaid phone churn of 0.87% for Q3.
On the financial front, service revenues of $15.9 billion grew 4% year-over-year, and postpaid service revenues of $12.3 billion grew 6% year-over-year. Net income of $2.1 billion grew 322% year-over-year, and diluted earnings per share (“EPS”) of $1.82 grew 355% year-over-year. The company also reported that its Core Adjusted EBITDA of $7.5 billion grew 12% year-over-year, and net cash provided by operating activities of $5.3 billion grew 21% year-over-year.
Network Milestones and Future Guidance
T-Mobile announced that its Ultra Capacity 5G network now covers 300 million people, reaching its 2023 goal over two months ahead of schedule. The company also raised its 2023 guidance, expecting postpaid net customer additions to be between 5.7 million and 5.9 million, and Core Adjusted EBITDA to be between $29.0 billion and $29.2 billion.
CEO of T-Mobile, Mike Sievert, commented on the results,
I’ve said it before and I’ll say it again: in this competitive environment, only T-Mobile can deliver the type of stellar results we saw in Q3 because only we can consistently deliver the best network and best value combination that customers want."
For more details on T-Mobile’s Q3 2023 financial results, please visit T-Mobile US, Inc.’s Investor Relations website.
