10:46 AM EST, 01/29/2025 (MT Newswires) -- T-Mobile US ( TMUS ) reported better-than-expected fourth-quarter results on Wednesday aided by its postpaid phone subscriber additions that came in ahead of Wall Street's projections.

The wireless company's net income came in at $2.57 a share for the December quarter, up from $1.67 the year before, above the FactSet-polled consensus of $2.29. Revenue increased to $21.87 billion from $20.48 billion, ahead of the Street's view of $21.33 billion.

Total service revenue rose 5.5% year over year to $16.93 billion, including postpaid growth of 8.3% to $13.5 billion. The stock advanced 9% in Wednesday trade.

"T-Mobile delivered another monster (fourth quarter) that punctuated an amazing growth year," Chief Executive Mike Sievert said in a statement. "In 2024, more new postpaid customers chose the Un-carrier than ever before, and we had our lowest ever full-year postpaid phone churn, leading to our third year of more than 3 million postpaid phone net additions."

The company added 903,000 postpaid phone subscribers in the quarter, down from 934,000 in the prior-year quarter, but above the average analyst estimate for 858,500. Postpaid net customer additions totaled 1.9 million, which increased from the previous three-month period and last year. Postpaid net account additions declined to 263,000 from 299,000 last year. Postpaid phone churn, which refers to the percentage of customers who stopped using the company's services, was 0.92%, down from 0.96%.

In prepaid, T-Mobile posted new customer additions of 103,000, up from 53,000 in the prior-year period. In high-speed internet, T-Mobile added 428,000 customers on a net basis, down from 541,000 in the 2023 quarter.

The company expects net customer additions under postpaid plans to be in a range of 5.5 million to 6 million for the full year 2025. "We expect approximately half of that total to be postpaid phone net additions," Chief Financial Officer Peter Osvaldik said during an earnings call, according to a FactSet transcript. In 2024, net customer additions totaled 6.1 million, up from 5.7 million in the preceding year.

"The strength we've seen in our service revenue growth underpins our expectation to now deliver approximately 5% growth in service revenue for the full year, up from the 4% we indicated during our capital markets day," Osvaldik said on the call.

For the ongoing year, core adjusted earnings before interest, taxes, depreciation, and amortization is pegged at $33.1 billion and $33.6 billion, reflecting annual growth of 5% at the midpoint, according to the company. Capital expenditures are estimated to be at roughly $9.5 billion, according to Osvaldik.

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