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T-Mobile posts mixed earnings, forecasts at least 5 million new customers this year

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T-Mobile US Inc. expects continued strong growth in its customer base this year, though not as robust as what was seen in 2022.

For 2023, the company anticipates 5 million to 5.5 million postpaid net customer additions, compared with 6.4 million in 2022. The projection came in T-Mobile’s
fourth-quarter earnings release, which bought an earnings beat but a miss on revenue.

The company generated a net income of $1.48 billion, or $1.18 a share, up from $422 million, or 34 cents a share, in the year-earlier period. Analysts tracked by FactSet were modeling $1.07 a share in GAAP earnings.

T-Mobile’s total service revenues increased to $15.52 billion from $14.96 billion a year before, whereas the FactSet consensus was for $15.56 billion. Overall revenue fell to $20.27 billion from $20.79 billion, while analysts were modeling $20.64 billion.

The company had 314,000 postpaid net account additions in the fourth quarter, bringing its yearly haul to 1.4 million, which the company said was a record high.

T-Mobile also had postpaid phone net customer additions of 927,000 in the fourth quarter. Its postpaid phone churn was 0.92% in the period. The carrier already preannounced some subscriber metrics, like these, in January.

Shares of T-Mobile were up less than 1% in premarket trading Wednesday.

“With record postpaid account and customer net adds that translated into industry-leading postpaid service revenue and cash flow growth, T-Mobile absolutely smashed 2022 by once again focusing on putting customers first,” Chief Executive Mike Sievert said in a release.

The report follows those from AT&T Inc.
and Verizon Communications Inc.
in late January.

See more: AT&T stock gains after earnings as company highlights growth and profits

Don’t miss: Verizon CEO says he won’t ‘sacrifice financials for volumes’ as stock claws back

Credit: marketwatch.com

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