Q4 2024 T-Mobile US Inc Earnings Call Transcript
Key Points
- T-Mobile US Inc (TMUS) achieved its highest-ever postpaid phone gross additions in 2024, marking the greatest growth year in its history.
- The company led the industry in postpaid phone net additions in Q4 2024, with 903,000 net additions, and maintained the lowest-ever total postpaid churn.
- T-Mobile US Inc (TMUS) saw over 60% of new customers selecting premium plans, leading to the highest postpaid ARPA growth in over seven years.
- The company delivered its highest-ever diluted earnings per share and free cash flow of $17 billion in 2024, with a cash flow conversion from service revenues of 26%.
- T-Mobile US Inc (TMUS) was recognized by third parties for network leadership, winning all five overall network experience categories from OpenSignal and outperforming competitors in Ookla's assessments.
- The wholesale revenue is expected to reach its low point in 2025 due to the planned tapering of partnerships with companies like DISH and TracFone.
- The company faces challenges in maintaining growth in fixed wireless access, with a slight decline in high-speed Internet-only accounts compared to previous quarters.
- T-Mobile US Inc (TMUS) is navigating the complexities of multiple acquisitions and joint ventures, which may impact financials and require significant integration efforts.
- The company is exposed to potential impacts from immigration trends, although it claims to be insulated due to its focus on premium monthly prepaid subscriptions.
- There is uncertainty regarding the financial impact of new ventures like the Vistar acquisition and the expansion of satellite services, which are still in early stages of development.
Good morning. (Operator Instructions) I would now like to turn the conference over to Cathy Yao, Senior Vice President of Investor Relations for T-Mobile US. Please go ahead.
Good morning. Welcome to T-Mobile's Fourth Quarter and Full Year 2024 Earnings Call. Joining me on our call today are Mike Sievert, our President and CEO; Peter Osvaldik, our CFO; as well as other members of the senior leadership team.
During this call, we will make forward-looking statements, which involve risks and uncertainties that may cause actual results to differ materially. We encourage you to review the risk factors set forth in our SEC filings. Our earnings release, investor back book and other documents related to our results, as well as reconciliations between GAAP and non-GAAP results discussed on this call can be found on our Investor Relations website.
With that, let me now turn it over to Mike.
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