T-Mobile(TMUS)2025-01-31 21:04Customer Base and Revenue - As of December 31, 2024, the company serves 129.5 million postpaid and prepaid customers, generating significant revenue from affordable wireless communications services and a variety of devices [21]. - The company reported that 79% of its customers are postpaid, 16% are prepaid, and 5% are wholesale and other services [31]. - In 2024, the company generated the majority of its service revenues from postpaid and prepaid customers, with nearly all revenues earned in the United States, including Puerto Rico and the U.S. Virgin Islands [28]. - The company generates revenue primarily from wireless communications services and device sales [387]. - Wireless communications services revenue includes premium services such as device insurance [388]. Network and Infrastructure - The company has deployed approximately 82,000 macro cell sites and 52,000 small cell/distributed antenna system sites across its network as of December 31, 2024 [35]. - The company utilizes a multilayer spectrum portfolio to create what it believes is America's largest and fastest 5G network, focusing on technology leadership and network differentiation [29]. - The company plans to acquire spectrum in the 600 MHz band from Comcast for total cash consideration between 3.4 billion, enhancing its spectrum position [35]. - The company is actively evaluating future spectrum purchases in upcoming auctions and secondary market opportunities to further enhance its spectrum position [35]. - The FCC lifted restrictions on EBS licenses in April 2020, allowing current license holders to sell their licenses, which may lead to increased competition for T-Mobile in acquiring 2.5 GHz licenses [53]. Financial Performance - Total revenues for 2024 reached 78,558 million in 2023 [334]. - Net income for 2024 was 8,317 million in 2023 [334]. - Operating income increased to 14,266 million in 2023 [334]. - Basic earnings per share for 2024 were 7.02 in 2023, reflecting a growth of 38.2% [334]. - Net cash provided by operating activities for 2024 was 18,559 million in 2023 [337]. Assets and Liabilities - Total current assets decreased to 19,015 million in 2023, reflecting a decline of 3.2% [332]. - Total assets increased slightly to 207,682 million in 2023 [332]. - Long-term debt rose to 69,903 million in 2023 [332]. - Cash and cash equivalents at the end of 2024 were 5,307 million at the end of 2023, representing an increase of 7.6% [337]. - The company reported a total stockholders' equity of 64,715 million in 2023, a decrease of 4.6% [332]. Risk Management - The company has established interest rate risk limits to manage exposure related to fluctuations in interest rates, ensuring financial flexibility over the long term [315]. - The company is actively managing its market risk exposure through cross-currency swap agreements to mitigate foreign currency transaction gains and losses [315]. - Changes in state regulations regarding net neutrality and pricing could impose significant business costs and increase litigation risks for T-Mobile [57]. Acquisitions and Investments - The acquisition of Ka'ena Corporation was completed on May 1, 2024, for a total purchase price of 4.4 billion, with up to 625 million, expected to close in the first quarter of 2025 [458]. - A joint venture with EQT's Fund VI will be established to acquire Lumos for approximately 4.9 billion in a joint venture to acquire Metronet, expected to close in 2025 [460]. Employee and Corporate Culture - The company employs approximately 70,000 full-time and part-time employees, focusing on a dynamic and inclusive culture to attract and retain talent [35]. Stockholder Returns - The company has authorized a stock repurchase program of up to 3.71 per share in 2023, totaling 0.65 per share in 2022, which totaled $747 million [339]. Accounting and Financial Reporting - The company has maintained effective internal control over financial reporting as of December 31, 2024, according to independent auditors [321]. - The company recognizes transaction gains and losses from foreign currency conversions as part of other income [383]. - The company employs a qualitative approach to assess potential impairments of its intangible assets, including spectrum licenses [377].