T-Mobile US Shares Gain on Q1 Performance; Boosting Sprint Merger Synergies Outlook

A T-Mobile store sign in Huntington Station, New York, on March 26, 2020. Bruce Bennett/Getty Images

T-Mobile US, Inc. reported first-quarter FY22 revenue growth of 1.8 percent year-on-year to $20.12 billion, beating the consensus of $20.11 billion. EPS of $0.57 beat the consensus of $0.32.

Service revenues of $15.1 billion grew 7 percent Y/Y, including Postpaid service revenue growth of 9 percent.

T-Mobile added 348 thousand postpaid net accounts and 1.3 million postpaid net customer additions. T-Mobile added 589 thousand postpaid phone net customer additions.

T-Mobile added 338 thousand high-speed internet net customers.

Core Adjusted EBITDA of $6.5 billion grew 10 percent Y/Y.

T-Mobile generated $1.65 billion in free cash flow.

CEO Mike Sievert said, “T-Mobile continues to be the growth leader in this industry, with another beat and raise quarter that delivered front-of-the-pack postpaid, new account, and broadband customer results.”

2022 Outlook

T-Mobile raised the Sprint merger synergies guidance range to $5.2 billion–$5.4 billion, up from the previous $5.0 billion–$5.3 billion.

T-Mobile saw Postpaid net customer additions of 5.3 million–5.8 million, up from the prior 5.0 million–5.5 million.

T-Mobile saw a free cash flow of $7.2 billion–$7.6 billion, up from $7.1 billion–$7.6 billion.

By Anusuya Lahiri

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