T-Mobile US revealed its financial performance — Capex, Opex, 5G coverage, and revenue – during the first-quarter of 2024.
Revenue fell 0.2 percent to $19.594 billion.
Net income grew 22% to $2.4 billion.
Service revenue grew 4% to $16.1 billion.
Postpaid Customers reached 99.272 million in Q1 2024 vs 98.052 million in Q4 2023
Postpaid service revenues 6% to $12.6 billion.
Added 218 thousand postpaid accounts.
Postpaid Accounts reached 30.015 million in Q1 2024 vs 29.797 million in Q4 2023
Postpaid phone churn was 0.86%
Postpaid Phone ARPU reached $48.79 in Q1 2024 vs $48.91 in Q4 2023
Added 405 thousand high speed Internet customers
Has 5 million high speed Internet customers.
Plans capital expenditures of $8.6 to $9.4 billion for 2024.
Capex of $2.627 billion.
T-Mobile said approximately 75% of postpaid phone customers are on a 5G device. T-Mobile’s Ultra Capacity 5G network carries nearly 95% of 5G network traffic on mid-band including the recently deployed Auction 108 spectrum. The company’s multi-layer approach to 5G, with dedicated standalone 5G deployed nationwide across 600MHz, 1.9GHz, and 2.5GHz delivers customers a consistently strong experience, with 85% of 5G traffic on sites with all three spectrum bands deployed.
T-Mobile US has revised its annual forecast for growth in monthly bill-paying phone subscribers, citing a surge in demand for its plans that bundle high-speed internet with access to streaming services. The telecom giant’s offerings, including Go5G Next and Go5G Plus, which provide subscriptions for services such as Netflix and Apple TV+, have become increasingly popular among consumers.
According to Mike Katz, T-Mobile’s president of marketing, strategy, and products, over 60 percent of new customers are opting for these bundled plans. They also stand out as the preferred choice when existing customers switch to new rate plans.
The company now anticipates adding between 5.2 million to 5.6 million subscribers in 2024, up from its previous forecast of 5 million to 5.5 million. T-Mobile’s competitive pricing strategies have helped it attract customers seeking flexible options, particularly in underpenetrated markets like rural and business segments, Reuters news report said.
T-Mobile outperformed expectations by adding 532,000 monthly bill-paying phone subscribers, thanks to disruptive pricing offers, which resonate well with consumers, including those transitioning from traditional home cable services.
T-Mobile achieved its lowest-ever first-quarter churn rate, indicating strong customer retention, at 0.86 percent.
T-Mobile has revealed that high speed Internet customer additions decreased primarily due to: 1) Increased deactivations from a growing customer base; 2)Lower gross additions driven by sunsetting of promotional pricing in order to maximize long-term value creation and 3) Partially offset by a lower churn rate.
Baburajan Kizhakedath
