My first trade was $T-Mobile US(TMUS)$ . T-Mobile provides voice, messaging and data services to more than 100 million customers in the U.S., Puerto Rico and the U.S. Virgin Islands. The company's two brands are T-Mobile and Metro by T-Mobile, formerly MetroPCS.
T-Mobile stock is up 20% in 2022 on the strength of industry-leading customer acquisition. Two years after its merger with Sprint, T-Mobile is growing its postpaid phone business faster than ever (and faster than peers Verizon and AT&T). The company is also showing momentum in its high-speed internet business—adding nearly 1.5 million customers year-to-date.
Third-quarter revenues increased 4% over the prior year, while free cash flow increased 32%. Net income of $508 million in the third quarter was down 26.5% due to merger-related costs of $972 million.
The company is still working through its Sprint integration plan. With progress to date ahead of schedule, T-Mobile recently raised its merger synergies guidance. The company had previously estimated merger-related cost savings of $5.4 billion to $5.6 billion. The new estimate is $5.7 billion to $5.8 billion.
T-Mobile has also announced that its 5G network now covers 323 million people. That includes 260 million people covered by T-Mobile's super-fast Ultra Capacity 5G network. More coverage and faster speeds, combined with competitively priced plans, low customer churn and an investment-grade balance sheet, can only help T-Mobile's momentum going forward.
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