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    T-Mobile US Inc (TMUS)

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    Business Description

    T-Mobile US, Inc. is a leading provider of mobile communications services in the United States, Puerto Rico, and the U.S. Virgin Islands, offering voice, messaging, and data services primarily through its 4G LTE and 5G networks . The company operates under the flagship brands T-Mobile and Metro by T-Mobile and provides a wide selection of wireless devices, including smartphones, tablets, wearables, and home broadband routers, along with accessories and equipment installment plans (EIP) for financing device purchases . T-Mobile's most popular service plan is Go5G Plus, which offers unlimited talk, text, and data, 5G access, and other features . In addition to mobile services, T-Mobile provides High Speed Internet through a fixed wireless product that utilizes their 5G network, offering an alternative to traditional landline internet services .

    1. Postpaid Services - Offers mobile communication services to customers who are billed after usage, contributing significantly to service revenues .
    2. Prepaid Services - Provides mobile services to customers who pay in advance, catering to those who prefer not to commit to long-term contracts .
    3. Wholesale Wireless Services - Allows partners to sell services using T-Mobile's network, expanding the company's reach through third-party vendors .
    4. High Speed Internet - Delivers internet services through a fixed wireless product utilizing the 5G network, providing an alternative to traditional landline internet .
    5. Wireless Devices and Accessories - Sells a variety of devices such as smartphones, tablets, wearables, and home broadband routers, along with related accessories .
    6. Specialized Service Plans - Offers tailored plans for specific customer segments, including Military and Veterans, First Responders, and customers aged 55 and over .

    Key Metrics

    View all financials →

    Executive Team

    NamePositionStart DateShort Bio
    G. Michael SievertPresident and Chief Executive OfficerApril 2020G. Michael (Mike) Sievert is the President and CEO of T-Mobile US, Inc. He joined T-Mobile in November 2012 as Executive Vice President and Chief Marketing Officer. Prior to T-Mobile, he held leadership roles at Clearwire Corporation, Switchbox Labs, Microsoft Corporation, AT&T Wireless, E*TRADE Financial, Procter & Gamble, and IBM .
    Peter OsvaldikExecutive Vice President and Chief Financial OfficerJuly 2020Peter Osvaldik is responsible for leading the financial, procurement, and supply chain functions at T-Mobile. He was previously the Chief Accounting Officer and Senior Vice President of Finance. Before T-Mobile, he worked at Outerwall Inc. and PricewaterhouseCoopers LLP .
    Mark W. NelsonExecutive Vice President and General CounselOctober 2021Mark W. Nelson oversees T-Mobile's legal and government affairs. He practiced law for over 25 years at Cleary Gottlieb Steen & Hamilton LLP, specializing in mergers, antitrust counseling, litigation, and regulatory proceedings .
    Michael J. KatzPresident, Marketing, Strategy & ProductsOctober 2023Michael J. Katz leads the Marketing, Product, Strategy, T-Ads, and Wholesale teams at T-Mobile. He has been with T-Mobile for over 20 years, previously serving as President of the Business Group and Chief Marketing Officer .
    Jonathan A. FreierPresident, Consumer GroupN/AJonathan A. Freier leads consumer-facing brands and operations for postpaid and prepaid customer segments at T-Mobile. He began his wireless career in 1994 with Western Wireless, T-Mobile's predecessor, and has over 25 years of experience in the telecommunications industry .
    Callie R. FieldPresident, Business GroupN/ACallie R. Field leads the T-Mobile for Business team. She started her career at T-Mobile in 2004 and has held various leadership roles, including Executive Vice President and Chief Customer Experience Officer .
    Néstor CanoExecutive Vice President, Transformation and Chief Information and Digital OfficerJune 2023Néstor Cano oversees T-Mobile's IT teams and infrastructure. He was previously the Executive Vice President, Integration and Transformation & Strategic Advisor to the CEO. Before T-Mobile, he was COO at Sprint and held leadership roles at Tech Data .
    Ulf EwaldssonPresident, TechnologyApril 10, 2023Ulf Ewaldsson was previously the Executive Vice President & Chief Network Officer and Senior Vice President of Technology Transformation at T-Mobile. Before joining T-Mobile, he held leadership positions at Telefonaktiebolaget LM Ericsson, including CTO and Chief Strategy Officer .
    Deeanne KingExecutive Vice President and Chief People OfficerN/ADeeanne King leads the human resources function at T-Mobile. She has over 30 years of experience, primarily at Sprint, where she was Chief Human Resources Officer and Chief Diversity Officer. She joined T-Mobile after the merger with Sprint .

    Questions to Ask Management

    1. Given your recent spectrum transactions involving the 3.45 GHz and 2.5 GHz bands, can you elaborate on how these moves align with your long-term spectrum strategy and network deployment plans, particularly regarding urban versus rural coverage priorities?

    2. With Deutsche Telekom expressing intentions to increase its ownership stake in T-Mobile, how might this impact your capital allocation strategies, especially concerning share buybacks and investments in growth opportunities, and what should minority shareholders expect from this development?

    3. Your guidance for postpaid phone net additions implies a potential deceleration in the fourth quarter; is this due to increasing competitive pressures or other factors, and how confident are you in achieving or exceeding this target?

    4. Can you provide specific quantification of the expected cost savings or margin improvements from your digitalization initiatives, and how will you ensure these efforts translate into tangible financial benefits over the next few years?

    5. Regarding the U.S. Cellular acquisition, can you detail the anticipated regulatory challenges and how you plan to integrate their assets to deliver both lower prices and better network experiences without disrupting your existing operations?

    Share Repurchase Program

    Program DetailsProgram 1
    Approval DateSeptember 6, 2023
    End Date/DurationOctober 1, 2023 - December 31, 2024
    Total additional amount$19.0 billion
    Remaining authorization amount$6.4 billion (as of October 18, 2024)
    DetailsThe program is designed to return value to shareholders through share repurchases and cash dividends. The timing and amount depend on factors like share prices, economic conditions, and company performance. The program can be suspended or discontinued at any time.

    Debt Maturity Schedule

    YearAmount Due (in millions)Debt TypeInterest Rate (%)% of Total Debt
    2025$4,068 3.500% Senior Notes 3.500 5.2% = (4,068 / 78,300) * 100
    2025$3,131 4.738% Series 2018-1 A-1 Notes 4.738 4.0% = (3,131 / 78,300) * 100
    2026$5,500 1.500% Senior Notes 1.500 7.0% = (5,500 / 78,300) * 100
    2027$4,500 3.750% Senior Notes 3.750 5.7% = (4,500 / 78,300) * 100
    2028$9,689 2.050% Senior Notes 2.050 12.4% = (9,689 / 78,300) * 100
    2029$5,671 2.400% Senior Notes 2.400 7.2% = (5,671 / 78,300) * 100
    2030$7,000 3.875% Senior Notes 3.875 8.9% = (7,000 / 78,300) * 100
    2031$7,950 2.250% Senior Notes 2.250 10.1% = (7,950 / 78,300) * 100
    2032$3,777 2.700% Senior Notes 2.700 4.8% = (3,777 / 78,300) * 100
    2033$3,850 5.050% Senior Notes 5.050 4.9% = (3,850 / 78,300) * 100
    2034$2,250 5.150% Senior Notes 5.150 2.9% = (2,250 / 78,300) * 100
    2035$900 4.700% Senior Notes 4.700 1.1% = (900 / 78,300) * 100
    2036$673 3.850% Senior Notes (EUR-denominated) 3.850 0.9% = (673 / 78,300) * 100
    2040$2,000 4.375% Senior Notes 4.375 2.6% = (2,000 / 78,300) * 100
    2041$2,500 3.000% Senior Notes 3.000 3.2% = (2,500 / 78,300) * 100
    2050$3,000 4.500% Senior Notes 4.500 3.8% = (3,000 / 78,300) * 100
    2051$3,000 3.300% Senior Notes 3.300 3.8% = (3,000 / 78,300) * 100
    2052$2,800 3.400% Senior Notes 3.400 3.6% = (2,800 / 78,300) * 100
    2053$1,750 5.650% Senior Notes 5.650 2.2% = (1,750 / 78,300) * 100
    2054$3,250 5.750% Senior Notes 5.750 4.1% = (3,250 / 78,300) * 100
    2055$1,650 5.250% Senior Notes 5.250 2.1% = (1,650 / 78,300) * 100
    2060$1,700 3.600% Senior Notes 3.600 2.2% = (1,700 / 78,300) * 100
    2062$750 5.800% Senior Notes 5.800 1.0% = (750 / 78,300) * 100

    Competitors

    Competitors mentioned in the company's latest 10K filing.

    • AT&T Inc. - Traditional Mobile Network Operator (MNO) and competitor in wireless communications services .
    • Verizon Communications, Inc. - Traditional MNO and competitor in wireless communications services .
    • DISH Network Corporation - Competitor as it continues to grow its network .
    • Comcast Corporation - Smaller and regional provider offering wireless services under MVNO agreements .
    • Charter Communications, Inc. - Smaller and regional provider offering wireless services under MVNO agreements .
    • Cox Communications, Inc. - Smaller and regional provider offering wireless services under MVNO agreements .
    • Altice USA, Inc. - Smaller and regional provider offering wireless services under MVNO agreements .

    Auditor

    NameStart DateEnd DateReason for Change
    Deloitte & Touche LLP2022 PresentCurrent auditor.
    PricewaterhouseCoopers LLP (PwC)N/AApril 13, 2022 The change was made as part of a comprehensive selection process and to align with Deutsche Telekom AG's auditor, Deloitte, in compliance with European Union regulations on auditor rotation requirements.

    Latest news

    Recent developments and announcements about TMUS.

    Financial Reporting

      Earnings Call

      ·
      7 days ago

      T-Mobile (TMUS) recently released its Fourth Quarter and Full Year 2024 earnings call transcript, providing key insights into its financial performance, strategic initiatives, and market outlook. Below is a summary of the key points:

      Revenue and Profit Performance

      • T-Mobile reported industry-leading financial growth in 2024, with postpaid service revenue growing over 8% in Q4, more than double the rate of its peers.
      • Core adjusted EBITDA grew by 10% in Q4 and 9% for the full year, with the company delivering its highest-ever diluted earnings per share and free cash flow of $17 billion.
      • For 2025, T-Mobile has guided for a 5% growth in service revenue, up from the 4% indicated earlier, and expects core adjusted EBITDA to be between $33.1 billion and $33.6 billion.

      Management’s Forward Guidance

      • T-Mobile expects total postpaid customer net additions of 5.5 to 6 million in 2025, its highest-ever beginning-of-year guidance.
      • The company plans to invest approximately $9.5 billion in cash CapEx to maintain and extend its network leadership, with adjusted free cash flow projected to range between $17.3 billion and $18 billion.
      • Management highlighted plans to continue optimizing rate plans and deepening customer relationships to drive ARPA (Average Revenue Per Account) growth.

      Market Conditions and Strategic Initiatives

      • T-Mobile emphasized its leadership in 5G broadband, capturing its highest-ever share of industry net additions in 2024 and leading the industry in broadband growth for the 12th consecutive quarter.
      • The company updated its pricing structure to attract price-sensitive customers while encouraging upgrades to premium plans, resulting in its highest year-over-year broadband ARPU growth.
      • T-Mobile is leveraging AI and advanced network technologies to optimize its network and improve customer experiences, including self-optimizing technologies and customer-driven coverage models.
      • The company is also exploring new business opportunities, such as its partnership with SpaceX for satellite-to-cellular services and its acquisition of Vistar to transform the digital out-of-home advertising industry.

      Analyst Questions and Management Responses

      • Analysts inquired about the sustainability of T-Mobile’s growth, particularly in postpaid and broadband segments. Management expressed confidence in its ability to continue outperforming expectations due to its structural advantages and strategic investments.
      • Questions about the impact of immigration on the prepaid market were addressed, with management noting that T-Mobile’s premium prepaid offerings are less affected by immigration trends.
      • On the topic of fixed wireless access, T-Mobile highlighted its algorithm-driven approach to managing network capacity, ensuring sustainable growth without overloading specific network sectors.

      Key Takeaways

      • T-Mobile is well-positioned for continued growth in 2025, supported by its strong financial performance, strategic investments in network and digital capabilities, and innovative initiatives in emerging markets like satellite connectivity and digital advertising.
      • The company’s focus on profitable growth, customer retention, and leveraging advanced technologies underscores its commitment to delivering long-term value for shareholders.

      For further details, you can access the full earnings call transcript on T-Mobile’s Investor Relations website.

      Earnings Report

      ·
      7 days ago

      T-Mobile US, Inc. has released its earnings results for the fourth quarter and full year of 2024, showcasing significant growth and financial performance. Here are the key highlights:

      • Total net customer additions were 2.0 million in Q4 2024 and 6.3 million for the year, bringing total customer connections to a record high of 129.5 million.
      • Service revenues increased by 6% year-over-year to $16.9 billion in Q4 2024 and by 5% to $66.2 billion for the year. This growth was driven by an 8% increase in postpaid service revenues in Q4 2024.
      • Net income rose by 48% year-over-year to $3.0 billion in Q4 2024 and by 36% to $11.3 billion for the year, marking the highest fiscal year in the company's history.
      • Diluted EPS increased by 54% year-over-year to $2.57 per share in Q4 2024 and by 39% to $9.66 per share for the year.
      • Core Adjusted EBITDA grew by 10% year-over-year to $7.9 billion in Q4 2024 and by 9% to $31.8 billion for the year.
      • Net cash provided by operating activities increased by 14% year-over-year to $5.5 billion in Q4 2024 and by 20% to $22.3 billion for the year.
      • Adjusted Free Cash Flow decreased by 5% year-over-year to $4.1 billion in Q4 2024 but increased by 25% to $17.0 billion for the year.
      • Stockholder returns through December 31, 2024, totaled $31.4 billion, including $14.4 billion in 2024, with $11.1 billion in share repurchases and $3.3 billion in cash dividends.

      T-Mobile's strong performance is attributed to its industry-leading customer growth, best network assets, and strategic initiatives, including significant contracts like the one with the City of New York for its Public Safety network.

      For 2025, T-Mobile expects continued growth with postpaid net customer additions projected between 5.5 million and 6.0 million, and Core Adjusted EBITDA expected to be between $33.1 billion and $33.6 billion.

      These results highlight T-Mobile's robust financial health and strategic positioning in the telecommunications industry.

      Auditor Changes

      ·
      Apr 15, 2022, 12:00 AM

      T-Mobile US, Inc. Auditor Change

      On April 13, 2022, T-Mobile US, Inc. announced a change in its independent registered public accounting firm. The company dismissed PricewaterhouseCoopers LLP (PwC) and engaged Deloitte & Touche LLP (Deloitte) as its new auditor for the fiscal year ending December 31, 2022. This change aligns T-Mobile's audit firm with that of Deutsche Telekom AG, following European Union regulations on auditor rotation. The change will be effective immediately after T-Mobile files its Quarterly Report on Form 10-Q for the period ended March 31, 2022, with the SEC .