T-Mobile(US:TMUS)2024-04-25 20:06Financial Performance - T-Mobile reported a 6% year-over-year growth in postpaid service revenue, contributing to a total service revenue increase of 4% to $XX million in Q1 2024[28]. - Net income for Q1 2024 was $2.4 billion, with diluted earnings per share at $2.00, compared to $1.9 billion and $1.58 in Q1 2023[48]. - Core Adjusted EBITDA increased by 8% year-over-year, driven by higher service revenues and lower costs of services[53]. - Total revenues for Q1 2024 were $19.594 billion, compared to $20.478 billion in Q4 2023[74]. - Operating income for Q1 2024 was $3.998 billion, up from $3.480 billion in Q4 2023[74]. - Net income for Q1 2024 was $2.374 billion, compared to $2.014 billion in Q4 2023[74]. - Adjusted Free Cash Flow increased by 39% year-over-year, reaching $XX million, primarily due to higher net cash provided by operating activities[59]. - Adjusted Free Cash Flow for Q1 2024 is projected to be between $16,400 million and $16,900 million, with a previous range of $16,300 million to $16,900 million[97]. - Adjusted Free Cash Flow margin for Q1 2024 is projected at 20.8%, compared to 26.8% in Q4 2023[95]. Customer Growth and Retention - Postpaid net account additions showed continued growth, although there was a decrease in net additions due to fewer high-speed internet-only additions[8]. - Total postpaid customers reached 99,272 thousand in Q1 2024, up from 98,052 thousand in Q4 2023, representing a net addition of 1,220 thousand postpaid customers[81]. - Postpaid phone churn rate improved to 0.86% in Q1 2024, compared to 0.96% in Q4 2023[83]. - Total high-speed internet customers increased to 5,181 thousand in Q1 2024, up from 4,776 thousand in Q4 2023[85]. - The company reported a total of 4,634 thousand postpaid high-speed internet customers in Q1 2024, an increase from 4,288 thousand in Q4 2023[85]. Capital Expenditures and Investments - Cash purchases of property and equipment decreased by 12% year-over-year, reflecting increased capital efficiencies from prior investments in the 5G network[57]. - Net cash used in investing activities was $1,787 million in Q1 2024, compared to $1,221 million in Q4 2023[77]. - The guidance for cash purchases of property and equipment for FY 2024 is between $(8,600) million and $(9,400) million[97]. Debt and Financial Obligations - Total debt, excluding tower obligations, at the end of Q1 2024 was $80.6 billion, with net debt at $73.9 billion[65]. - The impact of net payments for merger-related costs on net cash provided by operating activities was $293 million in Q1 2024, down from $484 million in Q1 2023[52]. - Proceeds from the issuance of long-term debt amounted to $3,473 million in Q1 2024, compared to no proceeds in Q4 2023[77]. - The company aims to maintain a strong cash flow to support debt repayment and further investments in the business[99]. Shareholder Returns and Dividends - During Q1 2024, the company repurchased 21.9 million shares for $3.6 billion, totaling 136.2 million shares repurchased for approximately $19.8 billion as of March 31, 2024[65]. - The company paid a cash dividend of $0.65 per share, amounting to approximately $769 million on March 14, 2024[65]. - The remaining authorization for stock repurchases and quarterly cash dividends through December 2024 is $11.7 billion[65]. - T-Mobile's stockholder return program for 2023-2024 may not be fully utilized, potentially impacting stockholder value[102]. Future Guidance and Outlook - The company raised its 2024 guidance following strong performance in Q1 2024, indicating confidence in continued growth[6]. - Postpaid net customer additions are projected to be between 5.2 million and 5.6 million, an increase of 150 thousand from previous guidance[68]. - Core Adjusted EBITDA guidance for 2024 is revised to a range of $31.4 billion to $31.9 billion, reflecting an increase of $50 million[68]. - Net cash provided by operating activities is expected to be between $21.6 billion and $22.3 billion, also an increase of $50 million from previous guidance[68]. - T-Mobile anticipates a Core Adjusted EBITDA of approximately $7.617 billion for Q1 2024, indicating positive future outlook[92]. Risks and Challenges - The company faces risks related to competition, regulatory changes, and economic conditions that could affect future results[102]. - T-Mobile's substantial level of indebtedness poses challenges in servicing debt obligations[102]. - The company is subject to various regulatory and legal proceedings that may increase costs and affect operations[102]. - T-Mobile's wireless licenses are subject to renewal and may be revoked, impacting service delivery[102]. - T-Mobile's future results may be influenced by geopolitical instability and supply chain disruptions[102]. - The company operates under the interests of its controlling stockholder, Deutsche Telekom, which may differ from other stockholders[102]. Operational Highlights - T-Mobile US, Inc. operates an advanced 4G LTE and nationwide 5G network, providing reliable connectivity for customers[103]. - The company emphasizes a strong commitment to customer service and innovation, aiming to disrupt the wireless market[103].