T-Mobile US, Inc. released its 10-K for the year ended December 31, 2024, showcasing a variety of financial and operational highlights. Here's a detailed breakdown of the key figures and events from the report:
Merger-Related Costs: In the year ended December 31, 2024, T-Mobile recognized a gain for the $100 million extension fee previously paid by DISH associated with the DISH License Purchase Agreement as a reduction to Selling, general and administrative expenses. Merger-related costs have been excluded from the calculations of Adjusted EBITDA and Core Adjusted EBITDA, which are non-GAAP financial measures. * As of June 30, 2024, the company has incurred substantially all restructuring and integration costs associated with the Merger.
Workforce Reduction: * In August 2023, T-Mobile implemented an initiative to reduce the size of its workforce by approximately 5,000 positions, just under 7% of its total employee base, primarily in corporate and back-office functions, and some technology roles.
Joint Ventures: T-Mobile entered into a definitive agreement with a fund operated by EQT, Infrastructure VI fund, to establish a joint venture between T-Mobile and Fund VI to acquire Lumos, a fiber-to-the-home platform. On July 18, 2024, the company entered into a definitive agreement with KKR & Co. Inc. to establish a joint venture to acquire Metronet Holdings, LLC and certain of its affiliates, a fiber-to-the-home platform.
Acquisitions: T-Mobile completed the merger with Ka’ena Corporation and its subsidiaries, including Mint Mobile LLC, for a total purchase price of approximately $956 million. The company entered into a securities purchase agreement with United States Cellular Corporation to acquire substantially all of UScellular’s wireless operations and select spectrum assets for an aggregate purchase price of approximately $4.4 billion.
Revenue Trends: * T-Mobile expects Postpaid service revenues to continue to grow in 2025, primarily due to continued postpaid account and customer growth as well as postpaid Average Revenue per Account (“ARPA”) growth driven by the execution of its strategy to continuously deepen its account relationships, including growth in High Speed Internet.
Operating Expense Trends: * In 2025, the company expects Total operating expenses to increase, primarily driven by higher Depreciation and amortization from assets placed into service associated with its continued build-out of its nationwide 5G network, as well as higher Cost of equipment sales, driven by higher expected unit sales from a growing customer base.
Macroeconomic Trends: * T-Mobile continues to monitor potential impacts of macroeconomic trends, including potential economic recession, changes in the Federal Reserve’s monetary policy, as well as geopolitical risks.
Results of Operations: Total revenues increased $2.8 billion, or 4% in the year ended December 31, 2024, compared to the same period in 2023. Adjusted EBITDA and Core Adjusted EBITDA also showed positive growth in the same period, increasing by 8% and 9% respectively. * Net cash provided by operating activities increased by 20% in the year ended December 31, 2024, compared to the same period in 2023.
These specific figures and events from T-Mobile's 10-K provide a comprehensive view of the company's financial and operational performance, as well as its strategic initiatives and outlook for the future. The market has reacted to these announcements by moving the company's shares -0.6% to a price of $232.97. Check out the company's full 10-K submission here.
