T-Mobile US (TMUS.US) Q3 earnings performance exceeds expectations, raises full-year performance guidance.

On October 25th, before the US stock market opened, T-Mobile US (TMUS.US) announced its financial performance for the third quarter of 2023. The financial report shows that the company's Q3 revenue decreased by 1.2% year-on-year to $19.252 billion, in line with analysts' expectations. Among them, service revenue was $15.914 billion, an increase of 3.6% year-on-year. Net profit was $2.142 billion, a 321.7% increase compared to the same period last year's $508 million; adjusted earnings per share were $1.82, better than analysts' expected $1.69, compared to $0.40 in the same period last year. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $7.6 billion, an 8.0% increase year-on-year; core adjusted EBITDA was $7.547 billion, a 12.2% increase year-on-year. Cash generated from operating activities was $5.294 billion, a 20.6% increase year-on-year. Adjusted free cash flow was $4.003 billion, a 93.8% increase year-on-year. The total net addition of users was 1.305 million, with postpaid net additions of 1.226 million. Among them, postpaid phone net additions were 850,000, higher than analysts' expected 780,400. T-Mobile US and its competitors Verizon and AT&T all faced a slowdown in mobile user growth due to a cooling off from the frenzy caused by the pandemic. However, T-Mobile US defied the trend by utilizing its leading advantage in fast 5G wireless network to expand its coverage to more rural areas and sell its wireless internet access services in areas with limited broadband choices. The company added a net of 557,000 wireless home internet users in Q3, surpassing analysts' expected 487,000. The company stated that its goal is to reach 7 to 8 million users by 2025. In addition, T-Mobile US raised its full-year performance guidance. The company currently expects a net addition of 5.7 to 5.9 million postpaid users for the full year, compared to a previous expectation of 5.6 to 5.9 million. It also expects full-year core adjusted EBITDA to be $29 to $29.2 billion, compared to a previous expectation of $28.9 to $29.2 billion, and adjusted free cash flow to be $13.4 to $13.6 billion, compared to a previous expectation of $13.2 to $13.6 billion.