T-Mobile US Revenue Declines In Q4, Hurt By Wireless Softness, Intense Rivalry

  • T-Mobile US, Inc TMUS reported a fourth-quarter revenue decline of 2.5% year-on-year to $20.27 billion Wednesday, missing the consensus estimate of $20.6 billion
  • EPS of $1.18 beat the consensus of $1.10.
  • Total service revenues increased 4% Y/Y to $15.5 billion.
  • Postpaid service revenue grew by 7% Y/Y to $11.7 billion.
  • T-Mobile added 314,000 postpaid net accounts and 1.8 million postpaid net customer additions.
  • T-Mobile added 927,000 postpaid phone net customer additions. It added 524,000 high-speed internet net customers.
  • T-Mobile generated $2.2 billion in free cash flow. 
  • "With record postpaid account and customer net adds that translated into industry-leading postpaid service revenue and cash flow growth, T-Mobile absolutely smashed 2022 by once again focusing on putting customers first," said Mike Sievert, CEO.
  • FY23 Outlook: T-Mobile sees Sprint merger synergies of $7.2 billion-$7.5 billion in 2023.
  • T-Mobile sees a postpaid net customer additions outlook of 5-5.5 million.
  • T-Mobile sees free cash flow of $13.1 billion-$13.6 billion.
  • T-Mobile added thousands of wireless subscribers over the last few years, with hefty discounts on smartphones, industry-low plan prices and an edge in 5G. But a slowdown in wireless growth and bigger promotions by rivals amid rising costs are hurting T-Mobile now, the Print reports.
  • In January, T-Mobile was hit by a data breach compromising data of 37 million postpaid and prepaid accounts. The company might book significant costs related to the incident.
  • TMUS Price Action: TMUS shares traded lower by 1.81% at $146.61 premarket Wednesday.

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