T-Mobile (TMUS) experienced a decline in after-hours trading following the release of its Q4 2023 results. The wireless network operator reported earnings per share (EPS) of $1.67, falling short of the consensus estimates of $1.91. Despite posting revenue of $20.48 billion, a 1% increase from the previous year, it exceeded the anticipated $19.68 billion. T-Mobile also saw a 3.4% rise in service revenue, reaching $16.04 billion, just below the projected $16.05 billion.
Although the company added 1.62 million net customers in the quarter, this figure represented a 12% decrease year-over-year and missed the 1.72 million expected by analysts. The number of added postpaid net customers was 1.57 million, down 14% from the previous year, and fell short of the estimated 1.69 million.
Adjusted EBITDA stood at $7.22 billion, reflecting a 5.8% increase from the year-ago period, slightly below the anticipated $7.28 billion. The postpaid monthly average revenue per account (ARPA) was reported at $140.23 in Q4, a 1.8% rise from the year-ago quarter, slightly surpassing analysts’ expectations of $139.49.
Looking ahead, T-Mobile anticipates adding between 5 million and 5.5 million postpaid net customers in 2024, compared to the consensus projection of 5.34 million. The company also projects core adjusted EBITDA to range between $31.3 billion and $31.9 billion and capital expenditure to land between $8.6 billion and $9.4 billion for the fiscal year.
T-Mobile’s CEO, Mike Sievert, commented on the company’s performance, stating, ‘This was a historic year for T-Mobile, with record outcomes across nearly every metric and industry-leading customer results – including our highest share of postpaid phone net adds since the merger and best-in-class growth in service revenues, profitability and cash flow – all while effectively completing the largest, most successful telecom integration in the world.’
Despite the mixed earnings and outlook, T-Mobile remains optimistic about its future, expecting adjusted free cash flow to range between $16.3 billion and $16.9 billion in 2024.
