T-Mobile US misses targets for customer growth despite strong financials

Published: 2025-04-26 13:01:05 ET TMUS

Key takeaways

T-Mobile US, Deutsche Telekom's U.S. subsidiary, experienced a slowdown in customer growth during the latest quarter and disappointed investors despite positive financial results and an improved outlook. Although T-Mobile added nearly 500,000 new customers, this fell short of analysts' forecasts and raised concerns about increasing competition in the U.S. mobile market.

Despite weaker-than-expected customer growth, T-Mobile confirmed its annual target of attracting between 5.5 million and 6 million new users. The company also slightly raised its earnings expectations. However, these positive developments could not satisfy investors. T-Mobile's share price fell more than 5 percent in after-hours trading on Wall Street.

Competitors

Analysts pointed out that T-Mobile's strong performance this year was already factoring in high expectations. The disappointing customer growth contrasted with the experience of rivals AT&T and Verizon, which gained even fewer new customers. This trend led to investor concern about a possible loss of market share for T-Mobile.

Financial results

Despite the setback, T-Mobile CEO Mike Sievert highlighted the record-breaking milestones achieved during the quarter. The company attracted a total of 1.3 million new customers, the highest number ever in the first quarter. In addition, free cash flow rose nearly 30 percent to $4.4 billion (€4.1 billion).

T-Mobile's robust financial performance was due in part to its popular "Go5G Next" and "Go5G Plus" plans, which bundle streaming services such as Netflix and Apple TV+ with mobile contracts. These offers, along with price guarantees from all major U.S. providers, have fueled competition in the market.

Collaboration with Starlink

T-Mobile has further differentiated itself through a unique partnership with Elon Musk's Starlink, offering connectivity via satellite phones via standard smartphones. This service is available to customers of any mobile carrier, putting T-Mobile at the forefront of technological innovation in the industry.

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