T-Mobile US, Inc. (NASDAQ: TMUS) reported third quarter 2021 results late yesterday, delivering Postpaid service revenues, customer growth, and raising 2021 guidance across the board. Net income, however, decreased year-over-year to $691 million in Q3 2021, which the company cited was primarily due to merger-related costs of $707 million. Diluted earnings per share (EPS) decreased year-over-year to $0.55 in Q3 2021, also due to merger-related costs.
“Another quarter of amazing results shows that customers love T-Mobile’s unique combination of the best value, best network and best experience,” said Mike Sievert, CEO of T-Mobile. “With our Magenta business firing on all cylinders and our Sprint integration ahead of schedule, we are well positioned for the future — and poised to continue winning with assets and a formula for growth that is differentiated from the other wireless players. We just keep exceeding our own targets on growth, profit and synergies — and we have no plans to slow down now.”
Highlights included:
- Record-high Service revenues of $14.7 billion grew more than 4 percent year-over-year, including industry-leading Postpaid service revenues growth of 6 percent year-over-year
- Strong Net income of $691 million and diluted earnings per share of $0.55 included higher merger-related costs year-over-year, and Adjusted EBITDA was $6.8 billion
- Record-high Core Adjusted EBITDA(1) of $6.0 billion, raising 2021 guidance
- Net cash provided by operating activities of $3.5 billion increased 25 percent year-over-year, raising 2021 guidance
- Free Cash Flow of $1.6 billion increased more than 4x year-over-year, raising 2021 guidance
- Extended Range 5G covers 308 million people and 1.7 million square miles
- Ultra Capacity 5G covers 190 million people and can deliver speeds of 400 Mbps or more, on track to cover 200 million people nationwide by end of year
- Raised full-year 2021 capital expenditure guidance to $12.1-12.3 billion
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