T-Mobile US has reported significant growth in its service revenues during the third quarter of 2023. The company revealed that its service revenues increased by 4 percent to reach a total of $15.9 billion, showcasing its continued success in the competitive telecommunications market.
One of the standout figures in the report was the postpaid service revenues, which reached an impressive $12.3 billion, marking a substantial 6 percent increase. This growth is indicative of T-Mobile’s ability to attract and retain postpaid customers, demonstrating the company’s ongoing commitment to providing quality services to its customers.
T-Mobile also shared encouraging news regarding its postpaid customer additions. The company’s updated guidance now estimates that they will add between 5.7 million and 5.9 million new postpaid customers. This represents a positive shift from the prior guidance, which anticipated additions in the range of 5.6 million to 5.9 million. These figures highlight T-Mobile’s ability to continually expand its customer base and maintain a strong presence in the market.
The financial report further revealed that T-Mobile’s net income has seen significant growth, reaching $2.1 billion. This increase of $1.6 billion can be attributed to several factors, including merger-related costs of $114 million, and severance and related costs associated with a workforce reduction in August 2023, totaling $353 million. Despite these expenses, T-Mobile’s net income remains robust, underlining the company’s financial strength and resilience.
Another noteworthy aspect of T-Mobile’s performance is its capital investments. Cash purchases of property and equipment, including capitalized interest, reached $2.4 billion, marking a 33 percent decrease year-over-year. This decrease is attributed to increased capital efficiencies resulting from accelerated investments in the nationwide 5G network in 2022. T-Mobile’s strategic investments are not only expanding its network but also driving cost efficiencies, which bodes well for its future prospects.
Additionally, T-Mobile proudly announced that its Ultra Capacity 5G network now covers 300 million Americans, achieving its year-end goal more than two months ahead of schedule. This achievement demonstrates T-Mobile’s dedication to providing advanced network capabilities to a wide audience.
In total, the company’s 5G network now extends its reach to more than 330 million people, covering 98 percent of Americans. This extensive network coverage solidifies T-Mobile’s position as a leading provider of 5G services in the United States.
T-Mobile’s Ultra Capacity 5G network covers 300 million people, over three times the square miles of AT&T and two times Verizon. Total 5G covers more than 330 million people (98 percent of Americans) and two million square miles, more square miles than AT&T and Verizon combined.
T-Mobile’s strong financial performance and network expansion efforts indicate its continued growth and success in the telecommunications industry. With a growing customer base, increased revenues, and an expanding 5G network, T-Mobile is well-positioned for a promising future in the competitive telecommunications market.