Shares of T-Mobile (NASDAQ:TMUS) jumped 9% at about $119.50 after-hours following the company's reported Q4 results on Wednesday.
The cellphone carrier that provides wireless communication services, delivered industry-leading service revenue and cash flow growth in 2021, enabled by its differentiated customer growth momentum and synergy-backed model.
Revenue of T-Mobile was up 6% year-over-year at $20.79 billion with Service revenues of $15 billion. The company recorded total net customer additions of 1.8 million, logging a net income of $422 million for the quarter, down from $750 million in the same period last year.
According to the Washington-based company, the decline in profit was mainly due to a planned increase in merger-related costs of $1.2 billion in Q4 2021 and $3.1 billion in full-year 2021. As it continues to over-deliver on integration milestones, T-Mobile ended the year transitioning approximately 64% of Sprint customers to the T-Mobile network.
T-Mobile issued guidance of postpaid net customer additions between 5 million and 5.5 million for 2022. For the full year 2021, T-Mobile brought in $2.41 in earnings per share at $26.9 billion in EBITDA and $5.6 billion in free cash flow.
The company further plans up to $13.5 billion in capital expenditures in 2022 as it continues to strengthen its network leadership position as America's only nationwide standalone 5G network. As of year-end, T-Mobile's 5G network covered 310 million people delivering nearly 5x more geographic coverage than its competitors.
The company's mid-band spectrum-based "Ultra Capacity 5G" network covered 210 million people at the end of 2021 and plans to increase that to 260 million this year and 300 million in 2023.
"There's one clear 5G leader in the United States, and that's T-Mobile. We're looking to extend our lead in 2022." - President of Technology Neville Ray at T-Mobile
Over the past 12 months, T-Mobile stock dropped 17%, versus a 20.5% return that includes dividends for the S&P 500.
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