T-Mobile US Inc (NASDAQ:TMUS) raised guidance after reporting double-digit growth in adjusted earnings in the third quarter and a rise in revenue.
The Bellevue, Washington-based telco now expects core adjusted Ebitda between $29.0 billion and $29.2 billion, an increase from prior guidance of $28.9 billion to $29.2 billion.
Adjusted free cash flow is expected to be between $13.4 billion and $13.6 billion, an increase from prior guidance of $13.2 billion to $13.6 billion.
In the third quarter, T-Mobile said service revenue of $15.9 billion, was 4% higher than the year before, and Postpaid service revenue of $12.3 billion, was up 6% both "best in industry growth."
Net income of $2.1 billion grew 322% year-over-year and diluted EPS of $1.82 grew 355% year-over-year, both again described as "best in industry growth."
Core adjusted Ebitda rose 12% to $7.5 billion, a 12% year-over-year growth, while net cash provided by operating activities climbed 21% to $5.3 billion.
Adjusted free cash flow jumped 94% to $4.0 billion.
Postpaid net account additions totalled 386,000, and Postpaid phone net customer additions were 850,000.
“I’ve said it before and I’ll say it again: in this competitive environment, only T-Mobile can deliver the type of stellar results we saw in Q3 because only we can consistently deliver the best network and best value combination that customers want,” said Mike Sievert, CEO of T-Mobile.
“This quarter’s best-in-class customer and financial growth, including our industry-leading postpaid net customer and account adds and highest cash flow in Un-carrier history, paint a clear picture of a durable and differentiated strategy that is working."
Shares in T-Mobile are up 1.5% in pre-market trading.