Core Viewpoint - T-Mobile has reported strong fourth-quarter 2024 earnings, exceeding estimates with significant customer growth and revenue increases, leading to a positive outlook for the company moving forward [2][3][4]. Financial Performance - T-Mobile's net income for Q4 2024 was $2.98 billion, or $2.57 per share, marking a 48% increase year-over-year from $2.01 billion or $1.67 per share [3]. - Total revenues for Q4 2024 reached $21.87 billion, up from $20.47 billion in the same quarter last year, surpassing the consensus estimate of $21.17 billion [4]. - For the full year 2024, T-Mobile reported total revenues of $81.4 billion, an increase from $78.55 billion in 2023 [4]. Customer Growth - T-Mobile added 1.9 million postpaid net customers in the quarter, the highest in the industry, with a postpaid phone churn rate of 0.92% [6]. - The company reported postpaid average revenues per account increased to $146.28 from $140.23 year-over-year [6]. Revenue Segments - Service revenues totaled $16.92 billion, up from $16.04 billion year-over-year, driven by strong demand for postpaid services [5]. - Equipment revenues were $4.69 billion, an increase from $4.17 billion in the previous year, attributed to a higher average revenue per device sold [8]. Cash Flow and Liquidity - T-Mobile generated $5.54 billion in cash from operating activities in Q4 2024, compared to $4.85 billion in the prior-year quarter [11]. - As of December 31, 2024, the company had $5.4 billion in cash and cash equivalents, with long-term debt of $72.7 billion [12]. Future Outlook - For 2025, T-Mobile anticipates postpaid net customer additions between 5.5 million and 6 million, with core adjusted EBITDA estimated at $33.1-$33.6 billion [13]. - The company expects adjusted free cash flow in the range of $17.3-$18 billion and capital expenditures around $9.5 billion [13]. Industry Comparison - T-Mobile's performance is compared favorably against Verizon, which reported a revenue increase of 1.6% year-over-year, indicating T-Mobile's stronger growth trajectory in the wireless industry [17].
T-Mobile (TMUS) Up 12.7% Since Last Earnings Report: Can It Continue?