T-Mobile(TMUS) - 2024 Q4 - Annual Results

Financial Performance - Net income for Q4 2024 was $3.0 billion, with diluted earnings per share at$ 2.57, compared to $2.0 billion and$ 1.67 in Q4 2023[39] - Net income for Q4 2024 was $2,981 million, compared to$ 2,014 million in Q4 2023, reflecting a 48% year-over-year increase[64] - Net income for Q4 2023 was $2,014 million, compared to$ 1,940 million in Q1 2023, with an expected increase to $2,981 million by Q4 2024[82] - Net income for Q4 2023 was$ 2,981 million, with a total net income of $8,317 million for the year ended December 31, 2023, representing a year-over-year increase of 11.5%[89] - Operating income for the year ended December 31, 2024, was$ 18,010 million, compared to $14,266 million in 2023, marking a 26% increase[64] - Adjusted EBITDA for Q4 2023 reached$ 8,243 million, contributing to a total of $31,864 million for the year, reflecting a 8.3% increase compared to the previous year[89] - Adjusted EBITDA for Q4 2023 was$ 7,224 million, reflecting a margin of 45.0%, with projections of $7,916 million and a margin of 46.8% for Q4 2024[82] - Core Adjusted EBITDA for 2025 is guided to be between$ 33.1 to $33.6 billion[57] - Adjusted Free Cash Flow for Q4 2023 was$ 4,084 million, with a total of $17,032 million for the year, marking a 25.5% increase year-over-year[93] - Adjusted Free Cash Flow guidance for FY 2025 is projected to be between$ 17,300 million and $18,000 million[94] Revenue Growth - Service revenues increased by 6% year-over-year, primarily driven by an 8% increase in postpaid service revenues[26] - Total revenues for Q4 2024 reached$ 21,872 million, an increase of 6.8% compared to $20,478 million in Q4 2023[64] - Postpaid revenues increased to$ 13,502 million in Q4 2024, up from $12,472 million in Q4 2023, representing an 8.2% growth[64] - Total service revenues for Q4 2023 were not explicitly stated but are implied to have increased, contributing to the improved net income and EBITDA figures[89] Customer Metrics - Total postpaid customers reached 104,118 thousand by the end of Q4 2024, up 6.5% from 98,052 thousand in Q4 2023[73] - Total postpaid customer additions for 2023 reached 5,650, while the guidance for 2024 is 6,066, indicating a growth of approximately 7.4%[76] - The total number of postpaid customer accounts increased from 28,813 in Q1 2023 to 30,894 by the end of 2024, reflecting a steady growth trajectory[79] - The total number of prepaid customers increased to 25,410 thousand by the end of Q4 2024, a growth of 17.5% from 21,648 thousand in Q4 2023[75] - Postpaid phone churn decreased by 4 basis points year-over-year, indicating improved customer retention[16] - Prepaid churn decreased from 2.86% in Q4 2023 to an expected 2.85% in Q4 2024, indicating improved customer retention in the prepaid segment[76] Debt and Cash Flow - Total debt, excluding tower obligations, at the end of Q4 2024 was$ 80.6 billion, with net debt at $75.2 billion[55] - Long-term debt increased to$ 72,700 million in 2024 from $69,903 million in 2023, indicating a 4% rise[62] - Net cash provided by operating activities for the year ended December 31, 2024, was$ 22,293 million, an increase of 20% from $18,559 million in 2023[68] - The company reported a net cash used in investing activities of$ 9,072 million for the year ended December 31, 2024, compared to $5,829 million in 2023, reflecting increased capital expenditures[68] - Cash purchases of property and equipment increased by 39% year-over-year, primarily due to planned timing of capital purchases[49] - Cash purchases of property and equipment, including capitalized interest, are expected to remain constant at$ 9,500 million for FY 2025[94] Stockholder Returns - The company returned a total of $31.4 billion to stockholders since initiating its stockholder return program in Q3 2022[56] - Total stockholder returns for 2023 amounted to$ 13,954 million, with projections of $14,408 million for 2024[85] - The company repurchased common stock worth$ 4,687 million in Q4 2024, significantly higher than $560 million in Q3 2024[71] - The company repurchased a total of 32,963,940 shares in Q1 2023, with cumulative repurchases reaching 173,663,375 shares by the end of 2024[85] Operational Efficiency - The company noted that Core Adjusted EBITDA is used to monitor financial performance, excluding lease revenues from device financing programs[14] - T-Mobile's retained earnings increased significantly to$ 14,384 million in 2024 from $7,347 million in 2023, showing a substantial growth in profitability[62] - Core Adjusted EBITDA margin improved to 49.2% in Q4 2023, up from 46.0% in Q4 2022, indicating enhanced operational efficiency[89] - The company continues to focus on operational efficiencies and strategic cost management, as evidenced by the reduction in merger-related costs and improved margins[89] Future Outlook - Postpaid net customer additions for 2025 are projected to be between 5.5 to 6.0 million[57] - Net cash provided by operating activities for FY 2025 is estimated to be between$ 26,800 million and $27,500 million[94] - The company faces risks including competition, market changes, and geopolitical instability that could impact future performance[102] - T-Mobile operates a transformative nationwide 5G network, enhancing connectivity and service quality for customers[103] Legal and Compliance - Legal-related recoveries from litigation associated with the August 2021 cyberattack were noted, contributing positively to the financial results[91] - The company is focused on maintaining effective internal control over financial reporting and compliance with regulatory frameworks[102]