T-Mobile US, Inc. reported strong financial performance for the third quarter and the nine months ended September 30, 2024, with significant increases in revenue, profitability, and cash flow compared to the same periods in 2023.
For Q3 2024, total revenues reached $20,162 million, marking a 5% increase from $19,252 million in Q3 2023. This growth was driven by an 8% rise in postpaid revenues, which totaled $13,308 million, up from $12,288 million. Prepaid revenues also saw a 10% increase, reaching $2,716 million, attributed to a higher average customer base following the Ka’ena Acquisition. However, wholesale and other service revenues declined by 39%, primarily due to lower revenues from mobile virtual network operators (MVNOs) and the Affordable Connectivity Program.
Operating income for Q3 2024 surged to $4,796 million, a 33% increase from $3,596 million in the prior year. Net income also rose significantly, reaching $3,059 million, up 43% from $2,142 million. For the nine months ended September 30, 2024, net income totaled $8,358 million, a 33% increase from $6,303 million in the same period of 2023.
T-Mobile's cash and cash equivalents increased to $9,754 million as of September 30, 2024, compared to $5,135 million at the end of 2023. The company generated $6,139 million in net cash from operating activities for Q3 2024, a 16% increase from $5,294 million in Q3 2023. Adjusted Free Cash Flow for the same quarter was $5,162 million, up 29% year-over-year.
Strategically, T-Mobile completed the acquisition of Ka’ena Corporation on May 1, 2024, for a total payment fair value of $956 million, which included cash and stock. This acquisition is expected to enhance T-Mobile's prepaid service offerings. Additionally, T-Mobile announced plans to acquire UScellular’s wireless operations and select spectrum assets for approximately $4.4 billion, expected to close in mid-2025, which is projected to yield significant cost synergies.
The company also engaged in share repurchase activities, repurchasing 39,093,340 shares for $6.5 billion during the nine months ended September 30, 2024. T-Mobile declared dividends totaling $3,304 million for the year, with a recent dividend of $0.88 per share announced for payment in December 2024.
Overall, T-Mobile's financial results reflect robust growth in customer base and revenue, alongside strategic acquisitions aimed at enhancing its market position.
About T-Mobile US, Inc.
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