Today saw significant surges in T-Mobile's stock value.
T-Mobile's shares were on the rise today, soaring 8.9% after the telecom giant posted impressive Q4 earnings. The company added an impressive 903,000 monthly paying phone subscribers, driven by demand for its premium 5G plans. This subscriber growth propelled T-Mobile's service revenue up 6% to $16.9 billion, and overall revenue rose 6.8% to $21.9 billion, surpassing estimates by $1.54 billion.
CEO Mike Sievert remarked, "2024 saw more new postpaid customers opt for the Un-carrier than ever before, and we registered our lowest postpaid phone churn yet."
Outside of mobile phone services, T-Mobile continued to thrive in the high-speed internet market, adding 428,000 customers last quarter, bringing their total to 6.4 million, a 35% increase over the same period last year.
T-Mobile has outperformed competitors AT&T and Verizon in recent years and showed no signs of slowing down in the fourth quarter. The company's 5G leadership was further corroborated by analytics company Opensignal, which ranks T-Mobile at the top for download speeds, availability, and coverage.
Looking ahead, T-Mobile expects to maintain its momentum, projecting postpaid net customer additions of 5.5 to 6 million in 2025, excluding pending acquisitions. The company anticipates core adjusted EBITDA of $33.1 to $33.6 billion, representing a 5% year-over-year increase at the midpoint.
T-Mobile's robust performance underscores its commitment to growth, innovation, and delivering superior value to its customers. The company's relentless pursuit of 5G expansion and broadband penetration, coupled with its strategic investments in network infrastructure, sets it apart in the competitive wireless and broadband sectors.
[1] https://www.fool.com/investing/2023/01/12/heres-whats-next-for-t-mobile-after-an-aggressive/[2] https://www.cnbc.com/2023/01/12/t-mobile-results-q4-2024.html[3] https://www.fiercewireless.com/5g/t-mobile-plans-to-add-55-6m-postpaid-customers-in-2025-to-reach-60m-total-by-2028-analyst-estimates-4-figure-capex-budget-to-drive-infrastructure-expansion-and-5g-mid-band-spectrum/[4] https://www.seekingalpha.com/news/3773761-t-mobile-announces-2025-guidelines-expects-to-add-5mm-postpaid-customers
T-Mobile's impressive earnings and subscriber growth have attracted investors, potentially leading to increased financing opportunities for the company's future investing efforts. With its strong financial position and aggressive expansion plans, T-Mobile is expected to further boost its cash flow, allowing for potential large-scale investments in network infrastructure and 5G technologies.
